If you’re a business owner and you know about GIRO transactions and want to use them for your business’s regular payments, well done! You’re heading in the right direction to save time and make your business more efficient. In the past, dealing with regular payments used to take a lot of time and effort, but now, with advanced methods like GIRO transactions, it’s much easier. 

While there are other ways to set up regular payments, GIRO transactions have special benefits for managing bills.

In this article, we will highlight those perks and mention a few other important points that will help you better understand GIRO. 

Perks of Using GIRO

• You Only Need A Single Bank Account

One of the biggest advantages of using GIRO to make recurring payments is that you only need a single bank account to set everything up. With GIRO, you can bid farewell to the hassle of managing multiple accounts, debit cards, credit cards, payment apps, and more. 

• Automatic Payments with Minimum inputs from your end

One of the most frustrating things about recurring payments is that they take a lot of time to set up correctly. Even when you switch to automatic payments, you need to feed the system instructions to handle the payments correctly constantly. With GIRO, you only have to place the instructions once, and the system will handle the rest. Take the time to get all instructions right, and make sure to double-check the details before proceeding with the payments. 

• No Additional Fees

It can be frustrating to keep paying an amount to set up accounts. Thankfully, there are currently no fees for setting up a GIRO account in Singapore. As long as your account has enough balance to facilitate the recurring payment, you don’t have to worry about additional charges. 

However, if you fail to maintain the minimum balance required to make a recurring payment, some banks might charge an additional fee. 

• Secured Transactions

To set up a GIRO payment, you, your bank, and the company you’re paying need to be connected. This means your bank and the billing organization must work together to process GIRO transactions.

What Happens When The Instructions Are Incorrect?

If the instructions you provided to the system are wrong, the deductions will be wrong. Which means you will have to set up another payment from scratch. This can be time-consuming, which is why you should be careful when adding details. There can be two cases where, even after adding the right set of instructions, the deductions go wrong. Let us take a look at them:

• Bank Error: Sometimes, your bank makes the wrong deductions. If that happens, you need to raise a query quickly. Soon after the query, the bank will run a check and rectify the mistake. 
• Error from the billing organization: If the company you’re paying makes a mistake, you’ll need to bring up a separate issue. They’ll look into the mistake and let you know what happened within three business days. If they take out more money than they’re supposed to, they’ll give you back the extra cash.

Why is it crucial to have enough funds in your account for a GIRO transaction?

1. Sometimes, Billing Organizations (BOs) might tell you if a deduction didn’t work and suggest a different date for another attempt.
2. If necessary, BOs might request different ways to pay.
3. BOs have the option to get back bank fees from failed deductions and add charges to cover processing expenses.
4. Certain banks in Singapore could impose a fee of S$10 for each unsuccessful GIRO deduction because they do not have enough money.

For all the details about their fees and costs, contact your bank and the relevant Billing Organization.

Conclusion

The introduction of GIRO Transaction has completely transformed the way businesses handle recurring payments. It is fast, reliable, and automatic. In addition, you don’t need to pay any additional fee to start the payments. The best part is you only need a single bank account to handle all the recurring payments.

 Remember to be extra careful while providing initial instructions; if you get them wrong, the payments will not be accurate. Also, you must keep enough funds in the bank account to complete a GIRO transaction.