With the rising threat of cyber-attacks, fraud and data leakage, online security is everyone’s first and foremost concern these days. While making financial transactions online, be it an online purchase or paying bills online, businesses and their customers want to be assured that their information is safe and secure. One way to make your customers feel that their information is safe with you is by having a secure and reputable BACS system.

Along with financial transactions, you can also maintain control by implementing a BACS payment service in your organisation. All it needs is a small investment initially, which can help you eliminate security concerns and let your customers carry out their financial transactions without safely.

What is a BACS System?

The BACS System was founded in 1968 by a not-for-profit organisation owned by 16 leading banks and building societies. The term ‘Building Automation and Control System’ (BACS) refers to a centralised system that monitors, controls and records functions of payment systems.

Over 100 billion transactions have been processed through BACS since its inception with a total combined value of £4.19 trillion. Two main schemes are operational which are BACS Direct Debit and BACS Direct Credit with services including Cash ISA Transfer Service, Bank Reference Data service and the Current Account Switch Service and Biller Update Service.

Improved Security with BACS

Security is an innate feature of BACS and its central infrastructure is continually updated to ensure improved security. At the same time, BACS is also getting the support through different connection protocols for added protection for its IP, website and service users. From 2017 onwards, all existing smartcards, digital certificates and signing solutions will be replaced with new ones by sponsoring banks to provide advanced security for loggingon, signing up and submission of BACS files.

BACS Payment Software

BACS payment software ensures safe and secure payments for businesses. It is automated software that links you to your bank and submits information directly to the BACS payment network. Thousands of organisations use the BACs payment service to streamline, automate and manage their financial processes at the same time delivering efficiency, reducing costs and achieving competitive differentiation. You can read more about how the BACS payment service works by following this link. Now that you have a basic understanding, we are going to focus on how BACS provides greater security.

How BACS Software Ensures Security?

Files are submitted directly submitted to the payment network by connecting to the Bacstel-IP, thereby enabling users to track and view their payment activities online. Electronic reporting is also included in the software which allows you to receive confirmation once your transaction has been processed. In order to be BACS approved, all payment software must meet certain safety and security standards. Companies find the BACS system to be a cost effective and easy way of carrying out business transactions. The BACS payment service also gives users peace of mind with its exceptionally secure payment system. Some ways in which the system makes financial transactions safe and easy include:

  • Payments are efficient, faster and secure
  • Verification and validation of bank information is easy at the point of entry
  • The use of accredited training and AUDDIS-compliant software reduces manual handling of data, thereby reducing the chances of errors
  • Detailed instructions increase efficiency and eliminate the need for the customer’s bank to re-enter transaction or payment details.
  • Automated document delivery saves considerable time and money
  • Cross-border transfers are reliable and simple owing to the International Payments service

Payment Safety Guarantee with BACS

BACS is one of the safest ways of collecting and making payments in the UK. Some of the key features that ensure its security include:

  1. Since 1968, BACS has been responsible for clearing and settling automated payments in the UK, making it one of oldest and most reliable payment services.
  2. According to recent research, BACS has never misplaced a single payment and has been used to make over 100 billion transactions since its inception.
  3. The system used by BACS, Bacstel-IP is protected by SSL encryption and therefore can only be accessed through a password.
  4. The system is continuously monitored to authenticate data, information and user authorisation.
  5. Only specific organisations are approved to access the Direct Debit payments. The Direct Debit Guarantee also guarantees against fraudulent payments.

Evolution of security features in BACS Payment Services

In 2016, the first phase of changes was made to BACS, thereby making it more secure by withdrawing older connection protocols and introducing a more up-to-date operating system.

After upgrading the connectivity, BACS services is now aiming to issue banks new smartcards with stronger security. New smart cards will be sent to all the users in compliance with their Gemalto and e-Signer software which will need to be installed for these cards to operate.

BACS is fully committed to ensuring effective security and quality services. Combining simplicity and efficient, BACS payment service is the ultimate solution for all your payment issues and financial problems.

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