What do you need to automate Bacs and Faster Payments?Nizam Yusuf
In order to completely automate your Bacs Direct Debit, Direct Credit, or Faster Payments transactions, your business will require two critical elements:
1. A Bacs Service User Number and
2. Access to a HSM (Hardware Security Module)
What is a Bacs Service User Number?
A SUN (Service User Number, or sometimes referred to as an Originator ID) is a unique six-digit number which is used to identify the business paying or receiving money through a Bacs or Faster Payment transaction. SUN details are kept in a database maintained by Bacs.
All communications with Bacs require a SUN which is used to create a record of each individual transaction. The bank itself uses the SUN to find the business name to be displayed on the payer or payee’s bank statement. If the payment is later charged back by the customer (in the event of a Direct Debit error), the SUN on the payment is used to identify the business that is liable for the chargeback.
What is a Smart Card?
A Smart Card is a security device used by businesses to validate and authenticate electronic payments and banking transactions. It is a credit card sized device which contains a memory chip, storing security keys to enable it to encrypt and authenticate transactions, when connected to a Smart Card reader.
Providing an enhanced level of protection, it is a device used by finance professionals to allow them to manually the submission of payments and collections, and as such complete automation is impossible.
• Authorisation done by a person
• No hardware infrastructure
• Inexpensive setup costs
• Cards (or tokens) can easily be misplaced
• Card must be plugged in to authorise
• Human error and forgetting passwords
What is a HSM?
A Hardware Security Module (HSM) is a hardware-based security device that generates, stores and protects cryptographic keys. It provides the foundation for a high-level secure certification authority.
Used by financial institutions, banks, the public sector, education establishments and corporates for secure authentication and file transmission, HSM is a more robust and secure solution to other PKI devices such as Smart Cards.
HSM provides a higher level of security than security tokens or Smart Cards and is critical to ‘lights out’ processing of payment and collection files. Businesses use the HSM in ‘Unattended’ mode meaning no human intervention is required to submit a file.
• Automated Submissions – Straight Through Processing
• Access remotely offsite – anywhere, anytime
• Improves efficiency and reduces manual Input
• Completely automated submissions with no manual processes
• Tamper-proof hardware
• High security encryption
• Onsite hardware can be costly to setup
• Controlled by central admin
• Purchase of HSM certificate from Bank
• Hardware infrastructure to maintain
With AccessPay, customers can access all the security and automation benefits of a cloud-based HSM without having to invest in or maintain any hardware. Connecting remotely to AccessPay’s hosted HSM service means you only need to purchase a certificate from your bank.
Now that you know the requirements of automating payments and collections through Bacs, go ahead and take the first step! For more information about Direct Debit and Bacs Direct Credit Software register for a Live Demo.