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Control of online payments

How to control payments made online

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Bank mandate (set up years ago) requires two signatures on cheques etc. This means that payments cannot be made online unless a dual authorisation system is set up with the bank, but this is expensive and the business is very small.

Is a way to deal with this? How do others manage it?

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By tom123
30th Nov 2020 13:28

Well, you need a proper business bank account, and to pay the charges that you want to go with it, in my experience.

Probably one step up from the more basic business account offering.

In my case I use HSBCnet, as opposed to HSBC Business banking.

The market is segmented such that if you want two approvals you will probably be a 'larger' concern and therefore capable of paying greater fees!

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By OldParkAcct
30th Nov 2020 13:44

If the business is small, why do you need 2 signatures? If you don’t trust your fellow director perhaps you shouldn’t be in business together?
Most banks will provide you with a dual authority option online, but you will end up paying larger monthly fees for the service.

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By Cheshire
30th Nov 2020 14:59

Just change the blithering bank mandate. Job done.

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By Comptable
30th Nov 2020 16:39

What I referred to as the business is actually the local branch of a national organisation, and the rules of that organisation stipulate the two signature mandate. So it is not possible to "just change the blithering bank mandate".
What I was looking for were suggestions as to procedures that might be put in place - suitable internal controls - with a single signature mandate. Something that could be put to the national organisation that could be argued as being as effective as two signatures.

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Replying to Comptable:
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By tltodman
01st Dec 2020 12:12

Lloyds has dual (or more) online signature controls as basic for a business account, but otherwise, I think as others have said, it comes at a cost. I had a local branch of a national charity who banked with HSBC (charity required bankers) who required two signatures on a cheque but online payments could only be made by one person. So here one trustee would email another the payment details, the other would email back their approval of the payment and the initial trustee then makes the (sole signatory) online payment. They then kept the dated/timed copies of emails/confirmations as an audit trail that it was approved by a second person before the payment was made. Seemed to work for the handful of annual online payments but would be a pain for a higher volume of transactions. But for a more robust system, unless it's Lloyds then it probably costs extra

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By tom123
01st Dec 2020 11:56

If you can't do a great deal 'before' the payment, then you need robust approval after the payment.

That is what I am doing with a small charity I am treasurer of.

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