This is the view of BACS Payment Schemes, a not-for-profit that aims to improve the quality of automated payments, which says that many businesses, particularly SMEs, have been slow to make the transfer from the current BACSTEL system to the new BACSTEL-IP channel.

Although the transfer process is relatively easy, it does not happen instantly and charities are being warned that if they do not act quickly they may miss the 31 December deadline. Failure to do so will mean organisations having to make alternative arrangements to cover regular payments, such as employee wages.

Michael Chambers, managing director at BACS Payment Schemes, said: “Organisations that usually reply on automated payments will face a real problem is they don’t start the transfer process soon. In addition, they face the inconvenience and extra administrative burden of arranging to make payments through their bank or bureau until they have completed their software implementation.”

For more information, visit www.bacstel-ip.com or call 0870 240 8138.