BACS is an electronic system to make payments directly from one bank account to another. They’re mainly used for direct debits and direct credits from organisations. Payments take 3 working days to clear – money paid into your account on Monday will clear on Wednesday.
Businesses are at risk of missing vital payments to staff and suppliers next week. Data from BACS shows that around 1,000 small businesses may be locked out of the payment system after failing to make important upgrades.
Security changes called SHA-256- SSL are being driven by the global internet community which will adopt these improved security measures at the end of this year. At that stage all organisations needing to communicate securely with users across the internet will be impacted.
BACS is making the change 13th June to avoid any last minute issues with payments when the existing SHA-1 certificates are switched off.
If you are a small business BACS are urging you to check whether or not you have the right software and operating system in place to make important payments like payroll as well as to settle invoices. If you work for a small business, ask your finance team if they’ve made these changes.
Any business yet to make the necessary changes should immediately contact their software solutions provider who will be able to help them in becoming compatible with the new security measures.
For information and assistance on processing payroll for employees, speak to our Payroll Team on 0161 464 8720 or Request a callback today.
PaycheckPlus – Making Payroll Easy!