If you’re familiar with the banking and payments industry you’ll have heard of, and probably used,...
How do I make a payment through Bacs?
Bacs payments are a secure electronic method of making low-value, high-volume, non-urgent payments directly from your bank account to another. If you're new to the Bacs payment scheme and you're wondering how to make a payment through Bacs, Interbacs is here to talk you through the steps involved with making a Bacs payment.
Since it was founded in 1968, Bacs has firmly established itself as the industry standard payment solution for businesses nationwide. If you're a start-up or small business, the world of Bacs may seem foreign to you at the outset. But it is actually quite simple and straightforward once you know the inner machinations of how it all works. Let's dive into some of the fundamentals you need to know right now.
Making a Bacs payment
We should begin by mentioning that there are two main Bacs payment methods. The first, and best known, of those is Direct Debit. Direct Debits allow you to take (with permission!) money from another party's bank account on a regular date. The second, less well-known, method is Direct Credit. Direct Credits enable you to pay or deposit money into a recipient’s account and are widely used for payroll purposes.
Bacs Direct Debits
Direct Debit is a safe, efficient and cost-effective method of taking payments from your customers. It is an excellent way of collecting recurring payments that don't necessarily need to be paid on the same day. Around 90% of the UK population uses Direct Debit to pay at least one regular bill and it is estimated that around 4.7 billion annual payments will be made by Direct Debit by 2028.
To collect Direct Debit payments you submit your payment data (including the amount of each payment, account numbers, sort codes and dates) through specialised Bacs approved software, a Bacs Approved Bureau or a Facilities Management Provider. The data is sorted into payments to each bank or building society and transmitted to each institution. This data is downloaded to their systems, debited from the customers' accounts and credited to yours.
Bacs Direct Credits
Bacs Direct Credits are a safe and secure method for UK businesses to make payments to the bank accounts or building societies of others. More than two billion Bacs Direct Credit payments are made every year. It is by far the most popular method of paying salaries, pensions, state benefits and tax credits in this country. In fact, around 80% of the UK workforce are paid their wages using Bacs Direct Credits.
To make Bacs Direct Credit payments you submit your payment data (including the amount of each payment, account numbers, sort codes and dates) through specialised Bacs approved software, a Bacs Approved Bureau or a Facilities Management Provider. The data is sorted into payments to each bank or building society and then transmitted to each institution. This data is downloaded to their systems, applied to the customers' accounts and debited from yours.
Make Bacs payments with Interbacs
Interbacs offers superior Direct Debit solutions that can boost your cash flow, give you a competitive edge, and encourage customer loyalty. We offer convenient and cost-effective Bacs Approved Bureau services to larger businesses with a Bacs Service User Number (SUN). We also provide first-class Facilities Management services to small and medium-sized enterprises that don’t meet the criteria to qualify for a SUN.
Save time and money with reliable, professional, and innovative payment solutions and services from Interbacs. For more information about any of our products or services, please contact us on 08444 127 180.