BACS Payment

BACS payments, short for Bankers’ Automated Clearing System payments, are bank-to-bank transfers within UK grounds. There are two key BACS payment types: 

• Direct Debit is when you authorise another party to withdraw money from your bank account (e.g., for your monthly utility bill or mobile data bill).
• Direct Credit: This is when another party sends money into your account (e.g., salary, refunds, refunds, etc.) 

To make a BACS payment, you must know the recipient’s name, bank, account number and sort code (which can all be found in your bank account or upon request by contacting your local bank branch). On your end (as the sender), you will also need the same details above. Once you have them all set and you have submitted the payment, here is an overview of the process: 

1. The payment gets inputted into the BACS system 
2. The bank processes your payment 
3. The amount gets transferred and paid through either Direct Debit/Credit

While BACS payment times may vary from bank to bank, they usually take three business days and cost between 5p and 50p. Please note that only the sender of the BACS payment will be charged the small amount, not the receiver.