Within business prompt payments of bills both outgoing and incoming are the foundations upon which a business forms its success. Businesses are only able to survive providing there is a good source of income to cover or exceed the outgoing payments each month; this is not to forget the prompt payment of staff wages!
In order to cope with the demands of the business world, technology has now been created to make the whole banking and payment process much simpler, commonly known as payment solutions.
Payment Solutions such as BACS (Bankers Automated Clearing Services) was invented in 1968 by Dennis Gladwell, developing a scheme which would enable electronic processing of financial transactions between banks eliminating the need for paper documents to be part of the transaction. BACS transfers made it possible for payments to be made in 3 working days, day one enter transfer, day two process transfer and day three to clear the funds, which meant that transactions could be guaranteed using this method.
Since 1968 BACS has progressed and offers a wide range of transfer and payment solutions including direct debits. BACSTEL-IP as it is known today is purely an internet based service to increase its efficiency and security; this payment solution software can only be obtained by BACS approved Solutions Suppliers.
The BACS system has been subject to criticism in recent times due to the time it takes transfers to be processed this is where a new payment solutions package came into play in 2007 called FPS (Faster Payments Service) this service was implemented to improve efficiency and transfer of low grade funds between banks allowing account holders to make immediate payments to other banks.
In addition to these payment solutions the need for better invoicing systems became apparent, hence the start of e-Invoicing. This method of invoicing clients enables business to implement HMRC compliant (covering the guidelines implemented for the thorough documenting and archiving of authentic VAT invoices, and the creation and distribution there of) electronic invoicing Implementing e-Invoices reduces the cost of sending and receiving invoices, increases credit control efficiency and payment turnaround time. E-invoicing systems can be combined with your existing financial software, without the need to amend or update your existing systems.
These are just a handful of internet payment solutions used in business today, others which are well known and used frequently for internet purchases are Worldpay or PayPal many of us will be familiar with these payment solutions when paying for goods we have bought through online shopping sites such as E-bay, submitting our card details to an online form for payment processing, so with this the next time you win your bid on e-bay think about how your wages to pay for your purchase entered your account this month.
Author Resource:-
Anna Stenning takes a closer look at how much we rely on payment solutions to receive our wages and pay our bills.
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