Account-moving service says it takes the pain out of transferring for small to medium businesses, with a guarantee to complete in seven working days
SMALL businesses can stay with their banks because of what they see as the complications associated with switching to a new account.
But the Current Account Switch Service, launched as a joint initiative in the banking industry, is claimed to make things much easier than before.
The scheme promises to have transfers completed within seven working days of a new account being opened – much less than the 18 to 30 days the process previously took.
A retailer with a simple current account, fewer than 10 staff and a turnover of less than £1.45m could be eligible for the switch service.
Once the customer has opened a new account with his or her chosen bank or building society the provider takes care of the entire switching process.
The customer doesn’t even need to inform their existing provider that they wish to move, scheme organisers say.
The new provider is required to make sure that any automated payments are transferred smoothly.
The account holder controls the date when their current account switches and the old account stays open until the switch date.
And the Current Account Switch Guarantee means the account holder will be reimbursed for any charges or interest caused by delays. The service is free and for 13 months after the account has been moved, payments accidentally made to or requested from the old account will be automatically redirected to the correct account at the new bank.
Designed for consumers, small charities and small businesses, the Current Account Switch Service is offered by 34 current account providers that make up almost all of of the UK market.
The scheme is managed by BACS Payment Schemes Limited. BACS is a not-for-profit operation that’s owned by 16 of the leading banks and building societies in the UK, Europe and the US.