Glossary · Payment methods
Bacs
Also called Bacs Direct Credit, Bacs Direct Debit
Bacs is the UK payment system for Direct Debits and bulk Direct Credits, which clears payments over three working days.
Bacs processes most UK Direct Debits and many bulk payments, such as payroll and supplier payment runs. A Bacs payment takes three working days: submitted on day one, processed on day two, in the recipient’s account on day three.
Many UK companies pay suppliers in a weekly or monthly Bacs run. If your invoice misses the cut-off for a run, it waits for the next, which is one reason payments from large customers cluster on particular days.
Bacs Direct Debits are covered by the Direct Debit Guarantee, which entitles the payer to an immediate refund if a collection is made in error.
Example
A UK client’s accounts-payable team submits its supplier run on Monday. The supplier’s invoice is included, and the money reaches its account on Wednesday.