Bacs software is a form of payment and documentation software which automates the disbursement and claiming of direct debits and direct credits across the entire financial sector. Any business receiving or paying direct debits or direct credits in the UK has to make sure that it has the ability to receive Bacs payments, in order to safely, securely and legally carry out these transactions. Bacs is a term often used to refer to the universal UK automated payments system. In actual fact, the term signifies the not-for-profit group, owned by 16 UK banks and building societies, which controls and regulates the payments systems.
Direct debit is used by approximately 75% of UK adults to handle phone bills or subscriptions, or to make donations to charity â and itâs far more common for each adult to hold multiple direct debits. Meanwhile, direct credit is used by companies to pay fixed wages or salaries, and by UK benefits departments to distribute the hundreds of different benefits involved in the UK system: housing benefit, job-seekers benefit, child benefit etc.
In actual fact, most households pay out multiple direct debits and many receive multiple direct credits. And a company or charity of any size usually needs Bacs software in place to be able to make or receive Bacs payments. When the organization gets bigger, its accounts payable departments are generally swamped with multiple direct debit payments. This means that most companies above a medium size â and some small to medium enterprises â use automated Bacs payment software to ensure that their payments are safe, accurate and efficient.
Although some still work with manual processing, this can leave departments open to fraud or simple losses through inefficiency. When a company receives and makes payments internationally, an additional layer of complication is added. A professional automated payments solution will validate and verify bank account information at every point of payment, and will have software accredited by the Bacs group in place. This accreditation is a labourious process which involves direct supervision and training. This means that if a properly accredited software provider is used, direct debit and direct credit payments are guaranteed to be safer and more accurate.
Companies often take to automated payment solutions because of their mixture of cutting costs with fantastically increased productivity. Payments can be most effectively handled by a professional software solution â and if companies choose an accredited Bacs software solution provider, a huge weight is taken off the companyâs back.Â
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