Bacs Payment Schemes Limited ( Bacs ), formerly known as Banker Automatic Clearing Service , becomes a wholly owned subsidiary of a new home for retail UK payments , The New Payment System Operator (NPSO) on May 1, 2018. As a result of this action, responsibility for Direct Debit operations, Direct Bac Loans, Current Account Transfers Service, ISA Cash Transfer Service, and Sort Code Directory Industry submitted to NPSO.
More than 125 billion transactions have been debited or credited to a UK bank account through Bacs since it was founded; in 2017, more than 6.34 billion UK payments were made in this way, while new records were also set in June 2017 with the number of transactions processed by Bac in one day reaching 111.7 million. [5]
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Histori
In 1968, interbank electronic funds transfer was introduced by the Interbank Bank Bureau intended to improve the existing clearing system by avoiding the need for paper documents. In 1971 the organization changed its name to Bankers Automated Clearing Services and, in 1986, the company shortened its name to Bacs Limited. [1]
On December 1, 2003, Bacs Payment Schemes Limited (BPSL) was separated from Bacs Limited: BPSL as a "not for profit" agency with members of the banking industry promoting use, and setting rules for automatic payment schemes, with Bacs Limited having the infrastructure to run the scheme.
Bacons Limited was allowed to continue to use this name for one year, and became Voca Limited on October 12, 2004. Voca Limited has since joined the UK national switch provider LINK Interchange Network Limited on July 2, 2007, a new company called VocaLink. VocaLink has an infrastructure where payment schemes operate and Bacs Payment Schemes Limited maintains the integrity of the current scheme.
From a technical perspective, in 2003, Bacs users began to move from a dial-up telephone BACSTEL service (introduced in 1983 to replace magnetic media) to a faster, more secure, Internet-based BACSTEL-IP service. All Bacs users, including businesses that make payments to their suppliers or operate their payroll staff electronically, are required to move to BACSTEL-IP by the end of December 2005 or re-use the checks. When the BACSTEL-IP service is introduced, any software used to establish a connection to the Bacs approval is required. It is now only possible to establish a connection with the software from the list of Bacs Approved Solution Suppliers (BASS), or by using an approved bureau.
This was followed in 2008 by mandatory requirements for all new service users to use AUDDIS - a more efficient system for organizations to send new Direct Debit instructions to their customer banks, or build communities, electronically, not in paper format. In the same year, the annual Direct Debit volume exceeded three billion and, in 2013, this number reached 3.5 billion with 100 billion payments processed since 1968.
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Recent developments
The record breaking of 2014 saw Bacs processing 5.8 billion transactions, totaling £ 4.4 trillion and including 3.6 billion Direct Debit. This highest value is exceeded again in 2015, when the amount of payments through the Bacs system reached six billion for the first time, with a value of Ã, Â £ 4.6 trillion. 239 million more Direct Debit is processed in 2015 compared to the previous 12 months, representing the highest annual pay increase ever made in this way.
2015 is also famous for setting another new record, with 103 million transactions processed in a single day in July, the first time the daily total has exceeded the 100 million mark. In the same year it was announced that the amount of payments handled by Bac since 1968 had broken 110 billion.
Records continue to fall in 2016 with 6.22 billion transactions processed at Ã, Â £ 4.8 trillion, while the amount of payments made by Direct Debit broke the 4 billion barrier for the first time. The daily processing records were also broken twice in the same year, with payments of 109.3 million passing the system on a single day at the end of September surpassing previous highs of 103.7 million recorded in April. And these figures are once again exceeded in 2017, with more than 6.34 billion payments processed in total Ã, £ 4.9 trillion, with a new daily record set at the end of June as 111.7 million payments are processed in one day
A well that has responsibility for Direct Debit and Bacs Direct Credit schemes in the UK, in recent years the coverage of Bacs is expanded to include the provision of managed services to third parties, such as the ISA Cash Transfer Service, and the development, management and subsequent ownership of the Account Service The High Aged Account, launched in September 2013. This service has reduced the time required for consumers, small businesses and small charities to transfer checking accounts into seven business days and backed by guarantees. To date, the service has facilitated more than 4.5 million switches.
On May 1, 2018, Bacs became a wholly owned subsidiary of a new home for UK retail payment, the New Payment System Operator (NPSO). As a result of this step, responsibility for Direct Debit operations, Bacs Direct Credit, Ã, Current Account Transfers Service, ISA Cash Transfer Service and Directory Order of Industrial Code are submitted to NPSO.
Products and services
Direct Debit
Direct Debits are instructions from customers to their bank or building community that authorizes an organization to collect various amounts from their accounts, usually for routine payments for everything from household bills to charitable donations. Over 4.2 billion Direct Debits are processed in 2017, and Direct Debit payments are protected by Direct Debit Guarantee, a money-back consumer protection.
Bacs Direct Credit
Bacs Direct Credit is a service that allows organizations of all sizes to make direct payments to banks or build community accounts. There are more than 150,000 organizations in the UK that use Bacs Direct Credit and have been widely adopted to pay benefits, wages and salaries - almost 90 percent of the country's workforce is paid in this way and one billion benefit payments are made through Bacs Direct Credit - This is also a method payments used for various other applications such as pension payments, employee fees, insurance settlements, dividends and refunds.
Current Account Transfer Service
Since its launch in September 2013, more than 4.5 million current account holders of the UK have successfully moved between banking service providers using Current Account Switch Services.
This service, which offers consumers, small businesses, trusts and small charities as a way to switch accounts smoothly, is created to increase competition, support new bank entry in the current account market and give consumers greater choice when switching from one bank or build a current account into another. Currently offered by 47 banks and high building communities - up from 33 at launch - giving almost all current account market coverage.
Once an account is currently opened with a new bank or building community, the Current Account Redirects Service will redirect all activities associated with the old account to the new account. That includes moving incoming and outgoing payments, and transferring account balances, and closing old accounts. An important feature of this service is that although the process occurs for seven business days, the account transfer takes place on the last day. This means that the customer continues to use the old bank account until the approved switch day and from then on using the new bank account. This means that there is no loss of service for each period for the customer.
This service is supported by an Active Account Swap, which promises to change account holders if they incur any charges or charges as a result of the switch.
Other managed services
The ISA Cash Transfer Service, launched in October 2012, offers a faster and easier transfer process while reducing paper flow and improving efficiency and the Biller Update Service, launched in June 2013.
See also
- CHAPS
- EFTPOS
- Payment UK
- Society for Telecommunications Interbank Finance Worldwide
- ToDDaSO
- Clearing (finance)
References
External links
- Official website
- Vocalink
- "Bacs is the future as a Direct Debit rule" Article Times (26 August 2013)
- "Bacs made a new payment note" FS Tech article (3 August 2015)
- OFT on money transfer in Daily Telegraph article
- Clearing time in BBC News article
- "Banking obstacles delay worker salaries" BBC News (March 29, 2007)
- The official website of NPSO
Source of the article : Wikipedia
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