BACS update puts over 1,000 SMEs at risk » SMEInsider

BACS update puts over 1,000 SMEs at risk

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A senior figure at payments system BACS has warned the owners of small business that they risk being shut out of the system unless they update their systems

BACS’ Mike Hutchinson, director of scheme support and development, said that SMEs should have received plenty of notification of the changes to BACS system, but many still hadn’t acted. “We are really disappointed that a number of organisations have not acted on urgent communications about important changes they must make to their payment software. We have been telling them this for more than a year,” said Hutchinson.

The update centres on bolstering BACS’ encryption, and the company has said that “These changes are necessary because the internet community is adopting new security certification businesses need to adopt SHA-256 SSL software in order to continue using BACS to make payments, but according to Hutchinson over 1,000 have so far failed to do so.”

 

Check your systems now

“If you’re a small business, you should check now whether or not you have the right software and operating system in place to make important payments, like payroll as well as to settle invoices,” he said. “If you work for a small business, ask your finance team if they’ve made these changes.”

The update will affect the requirements for accessing secure services, like our Payment Services Website. At the same time, we are withdrawing support for older connection protocols to provide even more protection for the communications pipeline between the Payment Services Website, and the service user. From 13 June 2016 we will only support TLS 1.1 and 1.2.”

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