What is BACS?

Bacs Payment Schemes Limited (Bacs), formerly known as Bankers' Automated Clearing Services is an electronic system to make payments directly from one bank account to another within Great Britain. They're mainly used for Direct Debits and Direct Credit from organisations. Since its inception 47 years ago more than 110 billion transactions have been debited and credited to British bank accounts via Bacs.
The system is operated and managed by Bacs Payment Schemes Limited, a membership organisation consisting of 156 of the UK's leading banks and building societies.

How do I make a Bacs payment?

There are 2 types of bank-to-bank payment: either via Direct Debit or via Bacs Direct Credit.

Direct Debit

Bacs Direct Debit (Direct debit payment) allows your customer or supplier to collect payments directly from their bank account. What is required for this type of payment is the name of the payee, the name of their bank, the payee's bank account number and sort code. Bacs Direct Debit is typically used for paying everything from bills to charitable donations.

Bacs Direct Credit

Bacs Direct Credit (direct credit payment) is a service enabling organisations to make payments directly into another bank or building society account. More than 150 000 UK organisations use Bacs Direct Credit for salaries and benefits and almost 90 procent of the UK workforce are paid using Bacs Direct Credit. The payment method is also used to pay pensions, insurance claims and refunds.

¹ Allied Irish Bank, Bank of England, Bank of Scotland plc, Barclays Bank, Citibank NA, Clydesdale Bank Plc, Coutts & CO, HSBC Bank plc, Lloyds Bank plc, Nationwide Building Society, NatWest, Northern Bank, Santander, The Co-operative Bank, The Royal Bank of Scotland, Virgin Money.