What is remittance advice for Bacs payments?
Sending a Bacs payment remittance email could be a good idea. Find out more about remittance advice for Bacs payments with our handy guide. Remittance advice explained  Firstly, lets take a look at remittance advice in a little more detail. In short, remittance advice is a proof of purchase document that customers send to suppliers to confirm that payment has been made. While it isnt mandatory to send remittance advice slips, it can help vendors match up invoices with payments, which is why many firms continue to implement this practice even after the rise of online payments. Bacs payments explained  Now that you know a little more about remittance advice, lets move onto Bacs payments. Essentially, Bacs (which stands for Bankers Automated Clearing Services) is an electronic system for making bank-to-bank transfers in the UK. There are two main types of Bacs payments: Direct Debit and Direct Credit. Direct Debit is a secure method of taking money from a customers bank account, whereas Direct Credit is a service that enables businesses to deposit payments into another bank account. Simply put, Bacs remittance advice is a remittance advice slip for a Bacs payment. If you receive a Bacs payment remittance advice letter, its an indication that a payment has been made to your account. If you check your bank account, you should see a new payment in your account. On the other hand, if youve recently actioned a Bacs payment, it may be a good idea to send Bacs remittance advice to confirm with your supplier that the payment has been made. There are a couple of important pieces of information that you should ensure are included in your Bacs payment remittance advice email or letter, including:  Name and address of supplier  Name and address of payor (you)  Method of payment  Invoice number  Amount of the payment  You should also include contact details for someone in your companys accounting team so that the supplier knows who to get in touch with if they need any help. Given that payment processing times vary, you might receive remittance advice for Bacs payments before actually getting paid. Payment via Bacs usually takes around three working days, so its entirely possible that your payment is on the way and will clear your account shortly. If youre expecting a Bacs payment, receive an advice slip, and dont receive payment within a reasonable amount of time (say, six or seven working days), contact the payor to find out whats going on. Remittance advice for Bacs payment may be sent by post or email, whichever is more convenient for you. Having said that, its probably best to send your Bacs payment remittance advice by email, purely because of speed. If you send the remittance advice slip through mail, its likely that your payment will already have arrived by the time that they receive it. Make sure that the email gets sent to the suppliers accounts receivable team, rather than a generic company inbox, otherwise it could get lost in the shuffle. We can help  GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.