Bacs software is a kind of payment and documentation software which automates the payment and claiming of direct debits and direct credits across the entire financial sector. Any organization receiving or paying direct debits or direct credits in the UK has to make sure that it has the capability 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 phrase means 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 pay phone bills or subscriptions, or to make donations to charity and it’s far more common for each adult to hold multiple direct debits. Meanwhile, direct credit is used by companies to pay recurring wages or salaries, and by UK benefits offices 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. At the same time a company or charity of any size typically 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 flooded with multiple direct debit payments. This means that most companies above a medium size and some small to medium enterprises use automated Bacs payment software to make sure that their payments are protected, accurate and efficient.
Although some still work with manual processing, this can leave offices open to fraud or simple losses through inefficiency. When a company receives and makes payments globally, an additional layer of complication is added. A good automated payments solution will validate and verify bank account information at every phase of payment, and will have software accredited by the Bacs group in place. This accreditation is a laborious process which involves direct supervision and training. This means that if a properly accredited software provider is employed, direct debit and direct credit payments are guaranteed to be safer and more effectual.
Companies often take to automated payment solutions because of their combination of cutting costs with wonderfully increased productivity. Payments can be most effectively handled by a expert software solution and if companies choose an accredited Bacs software solution provider, a huge weight is taken off the managers back.