NO one would blame you if you hadn't heard of bank giro credits, but they are something that every customer needs.
Bank giro credits are a type of payment - usually a digital transfer of money from one bank account to another.
You may have been asked to fill out a form for a giro credit and not know why, or perhaps you've already received one without even realising.
So what are they and why are they used? Below we reveal everything you need to know.
What is a bank giro credit?
There are various ways to transfer money from one bank account to another, from direct debits and standing orders to BACS and CHAPS.
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Banking giro credits are one way of moving money - and if you've ever seen the letters BGC on a bill or bank statement, you've received one.
The term "giro" literally means "circulation of money", and a credit is when money is paid to an account.
Bank giro transfers are used within the UK and Europe.
A BGC is a form that lists the service provider's name and account details.
The person or company making the transfer can fill out the details and submit their payment.
These details inform the bank of the sum that needs to be transferred to the account specified on the form.
In other words, it’s the old-fashioned paper way of doing an online bank transfer.
When do you get a bank giro credit?
You receive a bank giro credit when you receive money.
The process is digital, so takes out the risk of cheques (for those still using them) being stolen or lost.
It also means the money is transferred to your account quicker than the traditional route of depositing a cheque.
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It usually takes three days for the transfer of the cash to be completed.
How to fill in a bank giro credit slip
To make a payment this way, you'll need to provide your name and account number on the deposit slip.
If you have a slip from your chequebook, then these details are already filled in for you.
You’ll then need to write out the amount you want to transfer into the box provided.
There is also a second line where you’ll need to write the total amount you're transferring.
You then just need to sign the slip and provide a means of payment.
Crucially for many people, paying using a BGC is free.
That's important as banks have recently come under payment for charging up to £35 for CHAPS payments.
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