GIRO payments are a lifesaver for businesses that send multiple recurring payments each month. Unlike the long and tedious manual process of making these recurring payments, GIRO automates the whole thing, thus increasing efficiency and drastically reducing the probability of errors.
However, there are a few issues with the GIRO transactions, especially with the lengthy signup process. This article will explain the GIRO signup process in detail and how to avoid the long wait of getting the application approved.
Signup Process for a GIRO transaction in Singapore:
Here’s a simple guide on signing up your business for GIRO transactions in Singapore:
- Get the Form
To get started with GIRO, find the application form on the organization’s website or contact them directly if the form is not available online. The process is the same whether you want to use GIRO to make payments or receive money.
- Fill Out the Form
Fill out the GIRO form with information about your business and bank account details. For example, if you want to receive payments into your main bank account, you may need to complete a GIRO Credit Authorization Form.
- Submit
Send the filled form back to the organization.
- Wait for Approval
Your application will be reviewed and approved. If the form is correctly filled, it normally takes about 14 working days after submission. The person in charge will let you know when the first GIRO deduction will happen.
- Confirmation
After the long two-week wait, your application will be approved. Soon after that, you will receive a notification containing the details of the payment.
- Ensure Funds
For the GIRO transaction to be completed successfully, ensure that there are enough funds in your account on the date of deduction.
- Monitor
Once you’ve submitted the GIRO form, keep checking your bank statements for any deductions or payments related to the GIRO setup. Currently, there are no fees involved in setting up a GIRO arrangement. However, some government agencies may not allow payments to third-party virtual accounts, even if you have completed the GIRO Singapore DCA form.
Issues With GIRO:
- Slow Transfers:
Sometimes, GIRO transactions in Singapore can take longer to process. This is because they are often processed in batches. Transactions happen faster on weekdays when banks are busier compared to weekends or holidays. Different banks also work at different speeds, which affects how quickly your transaction goes through. Usually, it takes around two business days, but it’s best to check with your bank for the exact timing of your transaction.
- Lengthy Signup:
Getting set up for GIRO transactions can take some time. First, you need to get the application form from the company or organization you want to pay. Look for it on their website, or ask them for the form directly. After filling out the form, you have to send it back to them. The difficult part is that you then have to wait around two weeks because they need to review and approve your application before you can start using GIRO. So, there is a waiting period before your GIRO transactions can begin.
Using eGIRO to Reduce the Long Wait
Eight major banks & the association of banks in Singapore have introduced a new eGIRO system. This system uses modern technologies like cloud computing and APIs to make applying for GIRO payments much simpler and quicker.
Previously, setting up a GIRO payment arrangement used to take 3-4 weeks. But with eGIRO, individuals can now complete the application in just minutes. For corporate accounts that need approvals, it takes less than two days to get approved.
Conclusion
While GIRO payments are very convenient for businesses to automate recurring payments, the traditional application process is quite lengthy and tedious. With the introduction of eGIRO by the banks in Singapore, this pain point has been addressed.
The new eGIRO system uses modern technologies to make the GIRO application process much faster and simpler. What used to take 3-4 weeks earlier can now be completed in just minutes for individuals or within two days for corporate approvals using eGIRO. By adopting eGIRO, businesses can avoid long wait times and get their GIRO payments up and running quickly.
If your business deals with recurring payments in Singapore, it’s worth exploring the benefits of signing up for eGIRO to automate your payment flows efficiently.
