Home > Daily Banking > BACs Transfers and Processing Explained

BACs Transfers and Processing Explained

By: Jennifer Lowe - Updated: 8 Sep 2017 | comments*Discuss
 
Bacs Direct Debit Direct Credit Payment

If you are employed or work on a freelance basis, your wage will no doubt be paid directly into your nominated bank account. This is usually done by BACS transfer. BACS, which stands for Bankers Automated Clearing Services, was originally formed back in 1968 to enable banks and building societies to transfer funds between accounts during a time when paper transactions were the most popular.

This horizon has since changed and BACS is now the UK's single service for clearing automated transactions.

Is it Safe?

According to a recent report, since the system was introduced BACS have never misplaced a payment and are globally renowned for the secure delivery of electronic payments.

What is Direct Debit and Direct Credit?

This is simple, a direct debit is what you use, for example, to pay your gas bill, telephone bill or TV licence. It is an agreement set up between you and the company you wish to send money to authorising them to withdraw the appropriate amount directly from your account on a certain date.

Most people have multiple direct debits set up on a current account and they are now the most popular way of keeping in control of day-to-day finances.

In fact, over 75 per cent of UK adults have a minimum of one direct debit set up on their account and an average of 100,000 companies or organisations are currently using direct debits to collect payments.Direct credit is simply the opposite. This usually comes in the form of your monthly wage or pension, and simply allows a company to pay money into your bank account automatically without the need to write a cheque or hand out cash.

Most businesses now use BACS in order to pay their employees.

The Ins and Outs of BACS

Over the years, the Government have put pressure on BACS to facilitate a more competitive environment, and following the publication of a report into the company by the Office of Fair Trading, BACS split into two separate companies towards the end of 2004.BACS Payment Schemes LTD is responsible for overseeing the Direct Debits and Direct Credit transactions and Voca, the new company, is responsible for handling the infrastructure and processing of the transactions.

How Does it Work?

The process is simple, all you are required to have to receive or pay via electronic transaction is a bank account and in order to set it up all you need to do is supply you bank sort code and account number along with the name of the person the account is held by. Many people are concerned about this as a result of the increase in identity theft. However, no fraudster can do anything with these details other than pay money into your account.

A BACS payment can take between three to five working days to clear, whether it is being paid into your account or out of your account.

Remember, BACS payments are Very Safe and also help to reduce your carbon footprint because the paperwork involved is very little.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
[Add a Comment]
@BIILLIO - rinf the bank directly. They should be able to tell you whether there is a payment coming through.
Cornwall - 8-Sep-17 @ 3:45 PM
A BACS payment was sent to my bank around midday on Wednesday. I have been told that BACS payments should clear on Day 3 of the process (Which I guess is today?) I have seen nothing in my account as yet. Can BACS payments clear at any time during the day ? Or is it a case of if the funds have not arrived by a certain time then it won't happen until the next day..Or in this case possibly Monday as it is Saturday tomorrow. If there is a chance the funds could still arrive today then I will check periodically, however if the ship has already sailed then i will save my effort and check again over weekend or Monday instead. Any accurate advice would be appreciated, many thanks.
BIILLIO - 8-Sep-17 @ 11:13 AM
I have my wage slip payday today via bacs but still is the in my account can't understand why
lea - 25-Aug-17 @ 4:50 AM
So please explain to me in this day an age, when I can transfer cash immediately to another account using fast payment for free. Why does it take up to 5 days to transfer cash when the account holding institution insist on using bacs? Why can't they use the fast payment system? Could it be something to do with the missing 5 days of interest I lose during the bacs process?
charlielyons - 16-Aug-17 @ 4:47 PM
Hi pls help. If my company transfer my wages On a Tuesday and I hand my notice in on a Wednesday can my company cancel or reverse the payment so I wouldn't receive it on the Friday?
Tel - 14-Aug-17 @ 2:10 PM
Do you have to be a member of a bank to use this system?
Ka - 12-Aug-17 @ 11:23 AM
Jen - Your Question:
Hi I am die to receive a payment by BACS today I am just wondering around what time they normally go in your account as I haven't received the payment yet.

Our Response:
There is no specific time - you would have to contact your bank directly.
BankAccountAdvice - 27-Jul-17 @ 2:32 PM
Hi I am die to receive a payment by BACS today I am just wondering around what time they normally go in your account as I haven't received the payment yet.
Jen - 26-Jul-17 @ 8:29 AM
Vicki - Your Question:
Im waitin in momey being transfered from one account to another it was processed 17th july to santander when will I get it

Our Response:
You would have to speak to the bank directly. We have no knowledge of the administration procedures of your bank.
BankAccountAdvice - 25-Jul-17 @ 10:09 AM
I am executor for my late mother and will shortly be organising distribution of bequests. Can these be paid by BACS only to current accounts, or to any savings account with sort code and account number?
Westfield - 25-Jul-17 @ 8:45 AM
Im waitin in momey being transfered from one account to another it was processed 17th july to santander when will i get it
Vicki - 24-Jul-17 @ 12:59 AM
Dawnew - Your Question:
My pay day is the 5th but won't get paid untill after 2pm my DD go out in the morning why am I not getting paid untill after 2 pm and not first thing in the morning ??????

Our Response:
You would have to take this matter up directly with your employer.
BankAccountAdvice - 6-Jul-17 @ 2:53 PM
My pay day is the 5th but won't get paid untill after 2pm my DD go out in the morning why am I not getting paid untill after 2 pm and not first thing in the morning ??????
Dawnew - 5-Jul-17 @ 12:23 PM
@Legra - in my opinion BACS transfers are pretty quick. It might be the company who is transferring the money who is at fault.
ASha - 30-Jun-17 @ 10:36 AM
Why in this day and age does a bacs payment take so long in the UK? I work at home and abroad and payments in North America for example, are immediate including, on cheques. Why then are our banking so behind the times unless of course, bacs holds on to the money to gain daily interests before dispersing to individual accounts.
Legra - 29-Jun-17 @ 1:58 PM
Kez - Your Question:
I have a cldesdale bank savings account. Mt wages have been sent to this account. Was meant to be paid the 15th. Firstly will my wages go into this account okay as my dad puts money into it with my sort code and acct no all the time. And secondly what are yhe reasons it would not be showing up now its the 16th in my account?

Our Response:
You would have to contact your bank directly regarding this matter. However, I'm sure your wages will be in by now. If there is still some discrepancy, you would have to speak to your line manager at work.
BankAccountAdvice - 19-Jun-17 @ 9:55 AM
I have a cldesdale bank savings account. Mt wages have been sent to this account. Was meant to be paid the 15th. Firstly will my wages go into this account okay as my dad puts money into it with my sort code and acct no all the time. And secondly what are yhe reasons it would not be showing up now its the 16th in my account?
Kez - 16-Jun-17 @ 5:16 AM
Is there a minimum amount that can be sent in a BACS transaction. I am owed £50 from the company i work for but they say it isnt enough for s BACS transfer.
staish - 1-Jun-17 @ 4:13 PM
If a BACS payment was paid into a NatWest account after 4.30 on Wednesday when would the funds be cleared??
Kay - 26-May-17 @ 10:15 AM
Hi I worked for a company upto October 2015 , can I find out which bank my wages were transferred into my bank from ?
Gerry - 17-May-17 @ 2:51 PM
I am waiting to receive money from a court case. Witness. I sent details last Tuesday how long till I get money.
Forist - 8-May-17 @ 5:49 PM
Hi I left job and they owed me payment did it Friday morningby Baca transfer when will it show in my account please??
Ema - 8-May-17 @ 3:07 PM
Hi , we are waiting on a large payment , we've been told it has been paid but it's not in yet , would a bacs payment clear on a Friday night / sat morning with nationwide? The payer did say Monday would be the latest it will be in our account .
Hay - 5-May-17 @ 8:22 PM
I was due a direct debit payment 4pm good Friday does anyone know when I will receive it ??
Barbie - 15-Apr-17 @ 8:12 AM
Hi Ive been told today Im going to receive a payment in 3 working days from today (13th April) but its the day before good Friday and the Easter weekend when will the funds be available for me to withdraw them?
Robmc - 13-Apr-17 @ 2:10 PM
I am awaiting a refund into my account and been told it can take up to 14 days why is this please
Nellie - 7-Apr-17 @ 3:44 PM
I am the Registered Holder of some fully paid Ordinary Shares in a UK pharma. My registered address for these shares is in Australia. Can I sell these shares and have the proceeds paid into my son's UK bank account?
JB - 28-Mar-17 @ 9:40 AM
Ash - Your Question:
Hi I had a payment sent 2 my bank for £1700 and it is going 2take 3 working days to be available to me does anybody know if my bank will give me a advance on this payment to see me over the w kend and then they can take it off the money when it clears??

Our Response:
You would have to speak to your bank directly. Only your bank manager can authorise this sort of agreement.
BankAccountAdvice - 23-Mar-17 @ 2:44 PM
Hi I had a payment sent 2 my bank for £1700 and it is going 2take 3 working days to be available to me does anybody know if my bank will give mea advance on this payment to see me over the w kend and then they can take it off the money when it clears??
Ash - 23-Mar-17 @ 9:52 AM
Ifsupposed to be paid 23/3/2017 iam with nat west would this go in on the 22nd or on the day
Kurt - 21-Mar-17 @ 8:53 PM
Share Your Story, Join the Discussion or Seek Advice...
Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Topics
Latest Comments
Further Reading...
Our Most Popular...
Add to my Yahoo!
Add to Google
Stumble this
Add to Twitter
Add To Facebook
RSS feed
You should seek independent professional advice before acting upon any information on the BankAccountAdvice website. Please read our Disclaimer.