Businesses in Singapore are increasingly moving towards the GIRO system for a smooth financial experience. GIRO is convenient and offers a simple and quick way to manage subscriptions, utility bills, and supplier payments.
If your business is planning to set up a GIRO system, you should properly research the set-up process and eligibility criteria. Learning about do’s and don’ts will also help you to carefully make a decision and avoid any bottlenecks. In this article, we will explore some of the common mistakes that businesses should avoid while setting up a GIRO payment system.
Firstly, let us understand what GIRO is and how it works.
GIRO stands for General Interbank Recurring Order. It is a cashless payment system which helps businesses to pay or collect payments from other businesses and customers directly through the bank account. It is a three-way relationship between a business, a bank and a billing organization.
As a business, you can set up a GIRO account and give instructions on the payment amount, receiver’s account information, occurrence of payment, etc., to your bank. Your bank will review and send the information to the receiver’s bank. Once it is approved by all parties, smooth GIRO transactions can take place.
Mistakes To Avoid:
- Skipping Research
Sophisticated payment systems can make your work easier but can be difficult to get acquainted with in the beginning. If you are new to GIRO, it is advisable to do your research thoroughly before getting started.
You should also align the goals and objectives of your business to understand how GIRO can help you achieve them. Streamlining these objectives will help you approach GIRO in a way that suits your business needs and choose a service provider most well-versed with your objectives.
- Not Choosing The Right Service Provider
After you research, you might want to check the GIRO service providers available in your country. If you clearly set your objectives, you can easily find one that provides the services you are looking for.
Your service provider can be a bank or a financial institution. Make sure that you read all the terms and conditions and verify the costs if any before moving forward.
- Giving Incorrect Information
Your bank or service provider will be asking you a lot of information regarding your business, bank details, receiver details, etc. to set up a GIRO account. If there is any mistake in even one of your account numbers, your GIRO payment may fail.
There are systems in place to solve these problems; however, to avoid wasting time, make sure that you carefully provide all the correct information. Check all the information multiple times so that there is no error later.
- Having Insufficient Funds In Your Account
If you are setting up a GIRO payment for bill or merchant payments, the amount will be directly debited from your bank account. Thus, it is necessary that you have enough funds in your account for the payment to process.
We recommend that you create a separate fund for these payments and top-up regularly or as and when required so that none of your GIRO payments fail. Smooth flow of cash will also promote positive relations with other businesses and merchants.
- Not Reviewing The System Regularly
Even though the most important USP of GIRO is automatic payments, it does not mean that you can completely ignore the system once it is set up. We advise you to regularly check your bank statements and review them so that if there are any inconsistencies or delayed/failed payments, you can solve them promptly.
Reviewing the system will also allow you to decide if you want to continue with this particular system or update some changes according to the changing needs of your business.
Good financial decisions are made with careful consideration and research. GIRO is a wonderful tool for your business and comes with many benefits. Before you go ahead and set up GIRO for your business, knowing which mistakes to avoid will help you make considerate decisions.
Do your research, choose the right service provider, fill in all the correct information, and always have sufficient funds in your account. Make sure that you also regularly check the system to keep it up-to-date. If you follow these tips, it will benefit you and your business in the long run.