Your business customers are likely to favour paying for goods and services using the most convenient method for their individual situation. Paying online has become one of the easiest methods, with more people from multiple generations regularly using this service.
According to recent research, 87% of UK adults, which is approximately 47 million people, use some form of online or remote banking. Additionally, 60% of UK adults have access to mobile banking, and 40% of UK adults report having a digital-only bank account.
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Some customers may initially be reluctant to pay online or use digital services. They may already pay some bills using Bacs payments, but are not sure about using the system more widely. There could be a mixture of factors involved in their uncertainty, including access to evidence around the security of online payments and wondering if Bacs payments are safe.
Customer surveys have suggested that consumers who aren’t very confident with digital finance are sometimes less interested in trying new methods and are highly cautious of scams and fraud. Enterprises may want to share proof with their customers that reassures them of the safety and reliability of Bacs payments, such as Direct Debits, which is designed to fully protect the consumer, via the Direct Debit guarantee.
Naturally, once customers feel they can trust the process & infrastructure, they will be more sure of using Bacs payments to pay for goods and services. If your customers are asking if they can do a Bacs payment online, sharing some of the information from this article could help.
Contents
- Can I do a Bacs payment online?
- Is Bacs the same as a bank transfer?
- Why do businesses use Bacs payments?
- Complete Bacs payment services with Interbacs.
Can I do a Bacs payment online?
Bacs payments fall into two categories: Direct Debits and Direct Credits.
Direct Debits
A Direct Debit is a form of payment that is set up using the Direct Debit mandate instruction form. Customers fill in their information, including name, address and bank details, to set up a Direct Debit payment for a product or service. This can be a regular payment, irregular or even one-off transaction. The Direct Debit mandate form gives a business approval to collect the payment from the customer’s account.
Direct Credit
Direct Credits are paid into someone’s account for payments such as salaries or pensions. A Direct Credit usually occurs when an organisation pays into someone’s bank account, rather than collecting money from it. The majority of UK businesses use BACS for their payroll.
Customers who want to know if they can do a Bacs payment online can be assured that this is completely safe & secure. Most Bacs payments occur digitally, and simply require official set up through the Direct Debit mandate and approval from relevant banks.
Most UK banks facilitate Bacs payments online as their digital platforms enable users to make and manage payments. These platforms also allow businesses to adjust Direct Debit transaction dates, values & frequency as long as customers are given advance notice as per the Bacs rule and whatever their bank stipulates.
An advance notice is a mandatory requirement under the Direct Debit rules. Businesses have to give customers advance notice of a payment or payment change, so that customers have the opportunity to review the payment.
Is Bacs the same as a bank transfer?
So, is a bacs the same as a bank transfer? A Bacs payment is a bank transfer, but not the only type. Bacs refers to the Bankers’ Automated Clearing System, which processes the UK’s Direct Debit and Direct Credit payments.
There are other kinds of bank transfer available, such as CHAPS (Clearing House Automated Payment System) and Faster Payments. CHAPS are useful for larger transactions, such as house purchases, and Faster Payments include immediate payment facilities.
Why do businesses use Bacs payments?
Many UK enterprises find that working with the Bacs system makes collecting customer payments easier, more reliable and convenient for all involved. This is because Direct Debits are simple to set up, customers can complete the mandate form and a Direct Debit payment can take place in a short period of time.
Customers also have reassurance through the Direct Debit Guarantee. This is a protective function that enables customers to get their money back if a payment has been collected from their account in error or fraudulently, plus they can cancel a Direct Debit if they don’t require the goods/services any longer.
Complete Bacs payment services with Interbacs
Interbacs provides a wide range of Bacs payment services & solutions that are customised to your business requirements. With an expert team of Bacs specialists to hand, we ensure your payment processes are efficient, secure, seamless and compliant with industry standards.
Our Bacs-approved software streamlines your payment collection systems, reporting and day-to-day financial management, freeing you to focus on your organisational priorities.
We were one of the first Bacs-approved bureaus in the UK, illustrating our expertise across Bacs payment services to enhance your financial capabilities and deliver cost-effective payment solutions.
Take the hassle out of managing payments and let our experts handle it for you. Contact Interbacs today for a personalised consultation and unlock a more efficient, secure, and scalable payment solution.
