The below was taken from Income Group client Moorepay’s regular blog. You can read the original here
Faster Payments: The Fastest Payroll Payments
Waiting up to three working days for a BACS payment to land? That is so last year. You should be using Faster Payments and making payments in three seconds.
If you work in payroll, you’ll know that sometimes mistakes happen. It’s not right and it’s not pretty. But occasionally things get missed, balls are dropped, and that new starter your business was so excited to welcome, hasn’t been paid.
Every minute, every hour, and – heaven forbid – every day that employee hasn’t been paid is an absolute nightmare. And the pressure is on for payroll.
But what if you could fix mistakes as quickly as you can make a cup of tea?
‘That’s better, that’s… faster payments.’
What are Faster Payments?
If you use a banking app, you’ve probably got a few of your friends set up already, right? So, when you and Julie go halves on an eighteen-inch pizza, you can send her the money right away. There’s no need to draw out cash and faff about with coins.
Well, that’s a faster payment. Julie gets that money in an instant, she doesn’t have to wait up to three working days for the payment to clear.
If we can do it on our mobile phones to pay for pizza, surely we can do it at work to pay our people?
Yes. Yes, we can.
Why choose Faster Payments?
It’s about running your payroll faster.
Doing everything up to three days ahead of time – entering your data, locking down the system, getting approvals – is fine. It’s not great though is it?
With Faster Payments you can do things a little closer to pay day. Which is pretty handy, especially if you:
- Run a weekly payroll
- Want to pay your new starters something, even if they’ve joined the business super close to the payroll cut off
- Have staff who want a couple of extra days to submit timesheets and expenses (giving them more time to collect overtime in-week or in-month)
- Work for a business where things tend to be a bit last minute…
- Occasionally need to do things out of hours
Plus, your finance bod will be chuffed. Because keeping hold of all the payroll pennies for a couple of days longer, is good for cashflow. Which is good for business.
What about BACs?
Just to be clear, we still think BACS payments have their place. We just know that sometimes, waiting up to three days isn’t fast enough.
Plus, whilst you may think BACS payments are a decent ‘free’ option – they’re not. Free, that is.
Banks typically charge an annual fee which includes a rate for costs incurred by BACs.
But surely Faster Payments are really expensive?
They’re not. In fact, when you look at Faster Payment costs against what your bank is really charging you for BACs payments, the prices are comparable.
What’s more, depending on your arrangement with the bank, if you don’t have the funds in your account at the point a payment is taken, this could incur a charge. But with Faster Payments, you’ve got longer to make sure the cash is in the bank, reducing the risk of additional bank charges.
I want Faster Payments.
Yep, we thought you’d say that.
For more information on making quick, easy and affordable Faster Payments, call our team on 0345 184 4615 or send us an email to firstname.lastname@example.org.