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BACs Transfers and Processing Explained

By: Jennifer Lowe - Updated: 24 Jul 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.

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[Add a Comment]
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
A simple error number so small in bank card. Possibly I wrotedown sort code with a 03---- ( should be 08---) on a form along with name address acc number. Friday didn't get paid. When I realised mistake on Monday. Employersaid that's why you not been paid will have to get it retreaved bounced back., hours later he said I get paid it this Friday... how do I know he isn't making advantage to delay paying wage another week..
Don - 21-Mar-17 @ 6:50 PM
Smiler - Your Question:
Don't know why I have BACS Advance amount £80.50 taken out my pay

Our Response:
You would have to speak to your employer directly regarding this matter - I'm afraid we don't have an answer.
BankAccountAdvice - 17-Mar-17 @ 1:37 PM
Don't know why I have BACS Advance amount £80.50 taken out my pay
Smiler - 17-Mar-17 @ 3:27 AM
I have been told a refund by bacs would take 3 days. Is this true as i have heard about faster payments system
Sue - 28-Feb-17 @ 6:44 PM
I called Merrill medical on Tuesday they owe me £3,000 they said my payment will be payed within 5 days whoever today is Friday I called them back with a postcode they needed they said my payment was being processed what does this meen and when should I receive payment thanks
Kay - 23-Feb-17 @ 4:09 PM
i had a phone call at 3pm yesterday and got told in 24 hrs id have my esain my bank still nothing why is this
allan - 21-Feb-17 @ 3:21 PM
I'm due a payment today but no money has gone in my Halifax account as such from now
Hannah - 1-Feb-17 @ 12:27 AM
To ed I had a payment sent through on Saturday 24 and still waiting today for it hopefully cleared on Tuesday meaning waited 10 days must be busy this time of year but they have failed us
Scotty.t - 2-Jan-17 @ 8:21 AM
I normally get paid on Monday which will be the second of Jan, some people have had there's on Friday but I'm still waiting.. Anyone know? Hate being skint!
Laur - 1-Jan-17 @ 9:32 PM
Dear Ed, You state that you have not received no payment. This is a terribly elaborate way, using two double negatives of telling us that you HAVE been paid. Well done, jolly pleased to hear it. So what is your complaint then?
Vicar - 30-Dec-16 @ 8:39 AM
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