Does your business use BACS to pay its suppliers and staff? If the answer is yes, it’s time to sit up and pay attention to new security requirements, which could prevent you from using the payment system if you do not upgrade before 19th September 2016.
Originally slated to take place on 13th June, the upgrade required by BACS Payment Schemes had not been made by over 1,000 companies in the UK, an obstacle which prompted the June deadline to be put on ice. The new ‘final’ deadline was set for 19th September, in the hopes that more time would prevent tens of thousands of employees being left unpaid as a result of ignored upgrades.
Why is BACS Upgrading?
After taking note of worrying faults with the SSL certificates it has used since the 1990s to ensure security, BACS set to work upgrading its security requirements to ensure the safe transfer and payment of money.
Now BACS Payment Schemes requires all users to have more advanced SHA-2 SSL encryption to ensure the safety and security of their finances and transfers. As of 19th September, any business which does not have this level of encryption in place will not be able to make payments using BACS. This second deadline will leave the staff and suppliers of non-compliant businesses empty handed at the end of this month if companies fail to upgrade.
Upgrading to SHA-2 SSL
If you are lagging behind and still need to upgrade to the more effective security protocol, it’s time to talk to your IT provider or your BACS Approved Software Solutions provider (if you have one). BACS have offered more information and advice on how to upgrade and how to ensure your business is ready for the changes on their website.
L&Z are Already Compliant
If you’re already using our business services to make BACS payments, you can be confident that all of your suppliers and staff will be paid as usual at the end of this month. We’re completely up-to-date with BACS requirements and the latest security standards, allowing you to get on with business as usual.
Find out more about working with SHA-2 SSL certificates and TLS 1.2 in our recent blog or explore our full range of direct debit and payment gateway solutions online. If you have any questions about the new BACS security requirements and how they might affect your integration, please contact a member of the L&Z team today on 0121 418 5378.