Partner Article

Stay or switch, you’re the boss

Stay or switch, you’re the boss – the new Current Account Switch Service and your small business

Choosing a bank or building society that reflects the needs of your business is an important decision and for many small businesses the decision cements a crucial ongoing relationship. However, if and when the time comes to switch account the simple thought of the potential upheaval it is often enough to put businesses off.

From September however, the Payments Council is launching the new Current Account Switch Service which will make it simpler and easier to switch a current account from one bank or building society to another, making it more straightforward for small businesses to choose a current account with the provider that best meets their needs.

Any small business with an annual turnover and/or balance sheet total below €2 million will be eligible to use the new service. The new service will make switching current accounts faster, taking just seven working days, compared to the average 18 to 30 days it takes currently, and the switch will be managed in full by the new bank or building society. This means you won’t need to talk to your old bank as part of the process and you will also be able to choose a switch date that suits you and your business.

All existing payments, including those coming in (e.g. supplier invoices) and those going out (e.g. bill payments, Direct Debits, salaries) will be transferred automatically to the new account. The old account will close as part of the process and a new central redirection service will ensure that any new payments accidently sent to the old account after the switch date will immediately be redirected automatically to the new account for a period of 13 months.

Anyone making a payment electronically using your business’ old account details will, as a consequence, also have this information automatically updated by their bank to align with the business’s new account details. This will ensure that any subsequent payments go straight to your business’ new account rather than to the old one.

Crucially for small businesses the new service is backed by the Current Account Switch Guarantee. This Guarantee will ensure small businesses receive a clear and consistent level of service and that that they will be refunded any charges and interest in the event of a failure of the service.

The new Current Account Switch Service will promote competition amongst current account providers and will put small businesses firmly in the driving seat, with the flexibility to decide which bank or building society best suits their needs.

This was posted in Bdaily's Members' News section by Adrian Kamellard, Chief Executive, Payments Council .