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Many SMEs have still to finalise plans to migrate to the new internet-based BACS
system, putting at their payment arrangements at risk.
As many as 3,500 firms were reported to have not decided upon plans to switch
despite warnings from software providers and banks that failure to do so could
force businesses to manually pay staff and creditors when the old BACS system is
switched to the new BACSTEL-IP in the new year.
BACS users were required to switch to the new online system system before the
deadline or risk direct debit or payroll failures.
Mike Hutchinson, BACSTEL-IP Marketing Manager, urged businesses to get their
house in order. He explained: “They would have had withdrawal of service letters
from their banks. The doomsday scenario is that businesses will have to revert
to cash and cheques. They must talk to their banks, which might help the
businesses tide over”.
One of the main reasons behind the switch to the new internet-based system was
that the old BACS technology could not deal with the ever-increasing number of
transactions that utilised it.
Source:
Credit Control Journal
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