Bacs Direct Credit is the preferred method of receiving payments, with eight in ten employees in the UK receiving wages or salaries this way.
For businesses it makes sense to actively encourage all their customers to pay them direct by Bacs Direct Credit.
When you consider the benefits it is not difficult to understand why.
Benefits of being paid direct
Unlike cheques, payments by Bacs Direct Credit arrive instantly as cleared funds, so the money can be used straightaway or earn interest earlier too.
Easier and saves time and effort
No matter where you are or what else is going on in your business or personal life, with Bacs Direct Credit payments you can be assured the money will be paid straight into your account. You no longer have to spend time banking cash and cheques.
Safe and more secure
Unlike cash or cheques, Bacs Direct Credit payments cannot be lost, stolen or delayed in the post. Your money arrives automatically into your account on the day it is expected.
Organisations using Bacs Direct Credit typically pay earlier than those who don't. They also tend not to forget to make payments.
How to be paid by Bacs Direct Credit
Bacs Direct Credit payments are easy to arrange. Simply contact the organisation making the payment to check that they are able to initiate direct payments and supply them with the following information:
- The name(s) on the payment service provider account
- Your payment service provider account number*
- The branch sort code of your payment service provider*.
If you have a building society account ask them to confirm the account details.
*Payments are processed only using these numbers therefore it is vital that you double check that the account number and sort-code you are giving to the organisation are correct.
Payment reference information
Each year, UK businesses spend millions of pounds resolving problems caused when their customers make electronic payments without the right payment reference information.
It is important that the correct payment reference information is included with all electronic payments as businesses use this information to connect the payments they receive to their customers’ accounts. Payment reference information can normally be found on the payment details of a bill.
Best practice tips for billing organisations
- Remind customers making payments to include accurate reference information
- Educate customers so they are clear why the correct reference information benefits them
- Advise customers how many digits make up the reference, to help them identify any mistakes
- Help customers identify the reference by displaying it clearly and unambiguously at the top of the bill.
What to do if things go wrong
Most people never experience an issue with a Bacs Direct Credit payment however, on rare occasions a problem can arise. If an expected payment has not been received, you should first find out how the organisation sent it e.g. via Bacs. Also ask them for the sort code and account number they quoted on the payment, and the date they requested it to be credited to your account. Next contact your payment service provider to ensure that they haven’t received the payment. They may require additional information, including details of the remitting organisation and their sort code and account number.
If your payment service provider is still unable to locate the payment you should contact the remitting organisation as soon as possible so they can initiate an investigation. For advice on how to complain about a missed payment visit Bacs complaint procedure for Bacs Direct Credit.