Bacs software has a number of upsides over other payment systems (including the traditional solutions of cash and cheques). Since Bacs was launched in 1968 it has become extremely popular for businesses and other organisations. Bacs payments have recently been complemented and surpassed by the FPS (Faster Payments System) service, although in practice the two acronyms are used synonymously.
Bacs has huge benefits for both you and your customers. It’s not perfect, of course – no system of payment can be. But in general it represents a large improvement over the alternatives. Here are a few of them:
- It’s free. Customers don’t have to pay to send cash, as they do with postal orders and other similar systems. That makes it good for both small and large transfers.
- It’s fast. The typical time stated is ‘within three working days’, though in practice this is a very conservative estimate. Banks differ markedly on how long they take to make the transfers. If it’s within the same bank, clearing is almost instant. However, you can be unlucky and be forced to wait days in the worst cases.
- Safety. There are levels of security built into Bacs. Not only is there very little chance you will have a problem, but if you do (and it’s clearly not your fault) there are guarantees you will get your money back. In any case, it’s a far better option than keeping a lot of cash with you.
There are downsides, of course. If you are selling through eBay then you are strongly advised to use PayPal, since money can be returned in the event of a dispute. If you transfer money by Bacs, there’s no chance of getting it back when it has left your account unless the recipient capitulates. A similar problem exists if you happen to enter the wrong bank details and the money goes into someone else’s account – reclaiming it can be a long and tedious process. Under those circumstances, it’s often better to accept the small charge that PayPal entails.
Generally, though, Bacs payments are a fast and cheap way to move money in any amounts. Bacs software can be used with existing business systems to make transferring money simple and painless – saving you on staff, stress and potentially insurance costs. And Bacs has been around long enough to be well-established: everyone knows where they stand with it and you shouldn’t have any trouble convincing suppliers and customers to use it.
Please visit http://www.bottomline.co.uk/ for further information about this topic.
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