Collecting and making payments by Direct Debit and Direct Credit is quickly becoming standard business practice in the United Kingdom. Current statistics published on the Bacs website indicate that over 3.6 billion Direct Debit payments are processed yearly and almost 90% of the UK employees, are now paid by Direct Credit.
These type of transactions are known as ‘automated business payments’ and hold a number of advantages over traditional manual business processes.
What are automated Bacs business payments?
Automated business payments are arrangements for specified amounts of money to be transferred from one bank or building society account to another. Easy to arrange and highly cost-effective, Direct Debit and Direct Credit payments can be set up as a one-off payment or recurring payments, which can be particularly useful for paying regular suppliers.
Bacs (Bankers Automated Clearing Service) is the payment company responsible for the United Kingdom’s widely emulated automated payment infrastructure. Working in conjunction with 16 of the country’s leading banks and building societies, the Bacs network offers a number of services to assist businesses in making bank-to-bank payments.
What are the benefits of automated business payments?
It’s easy to see why the use of automated business payments has become so popular amongst businesses, with the number of proven benefits including:
- Improved cash flow management
- Reduced manual business costs
- Enhanced profitability
- Real-time visibility of payments
- Streamlining of business payments
(Diagram of ‘Automated Business Processes from ‘AccessPay Brochure’)
As a business looking to use these services, there are a number of different types of payments which have slightly different setup requirements. To make choosing the right payment method to suit your business needs as easy as possible, we have put together this simple beginner’s guide to assist you.
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