Local businesses are being advised of the important changes taking place, which will affect payroll payments.

Companies need to register for the new service as soon as possible before their current package ceases to operate at the end of the year.

The new BACSTEL-IP service is the first phase of the BACS development programme. This is a technology renewal programme aimed at improving the services that BACS offers to customers.

BACS member banks are supporting the programme, which will affect all users of BACS. It will replace the current BACSTEL service and will offer an updated way of accessing BACS electronic funds processing services in addition to a number of new developments and services.

All customers using the current BACSTEL service should contact their banks as soon as possible and begin implementing the new system before December 2005.

The key benefits will include access via an Internet or extranet connection for technology users, enhanced security, improved tracking and reporting ability, and more control over data.