Bacs Payments
Efficient payments you can rely on
Different organisations manage Bacs payments in different ways. We support flexible options so you can use Bacs in a way that suits how your organisation works, while still relying on a secure and trusted payment method.
What is Bacs?
A Bacs payment is a bank-to-bank transfer between banks in the UK. Bacs stands for Bankers’ Automated Clearing System and is managed by Pay.UK. It refers to the network of banks and building societies that participate in the Bacs payments scheme, a secure, cost-effective solution that helps businesses save time and effort with large volumes of payments.
What is Bacs used for?
There are two main Bacs payment types:
Making Payments
Bacs Direct Credit (Payments Out)
Also known as ‘bank transfers’, this is when third parties transfer money into your account, such as your salary.
Collecting Payments
Bacs Direct Debit (Payments In)
This is when you give permission for third parties to take regular payments from your account, such as utility companies.
To learn more about the range of Bacs-approved services you can use to make or receive payments, visit the Bacs website.
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Unity e-Payments?
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There are two ways to use BACS. What are they?
Direct submission
Bacs direct submission lets an organisation create payment instructions and files, then submit them directly to Bacs using its own Bacs-approved approved software and infrastructure.
Best for:
- Large organisations.
- Organisations with a large number of payments per month.
- Organisations with the technical resources to manage the process internally.
Considerations:
- Full control over the submission process and timing (subject to the 3pm daily cut-off time).
- Requires upfront investment in software and maintenance but lower cost per transaction fee.
Indirect submission (Unity e-Payments)
Bacs indirect submission is where an organisation uses a third-party bureau to submit payment instructions to the Bacs system on their behalf. We offer this through our Unity e-Payments product.
Best for:
- Smaller businesses.
- Organisations with low payment volumes per month.
- Organisations with limited resources to manage the process internally.
Considerations:
- Relies on the bureau’s systems, timelines, and controls, rather than your own.
- Higher cost per transaction fee, but lower setup and maintenance costs.
How does the Bacs process work?
Bacs payments have a cycle of three working days: they are submitted into the system on the first day, processed on the second day, and are debited and credited on the third day.
Day 1: Submission
You submit the payment instruction to Bacs, including the recipient's account number, sort code and payment reference.
Day 2: Processing
Bacs processes the instructions, checks security details and validates the payment.
Day 3: Payment
Funds are credited to the recipient's bank account by direct Credit or Debit.
The cut-off time for daily submission is 3pm Monday to Friday. Any submissions after 3pm will not be processed until the next working day. This means that if a Bacs payment is sent:
- On a Monday before 3pm, it should arrive by Wednesday of the same week.
- On a Monday after 3pm, it should arrive by Thursday that of the same week.
- On a Friday before 3pm, it should arrive by Tuesday of the following week.
- On a Friday after 3pm, it should arrive by Wednesday of the following week.
Once a payment has been submitted on Day 1, the payer has up to 3pm on Day 2 to recall or amend that payment. After this time, all payments are processed and will be made the following working day (Day 3).
For example, if a business wanted to pay salaries on a Friday, they would submit the file on the Wednesday before (Day 1). The payer can recall or amend that payment up until 3pm on Thursday (Day 2), after which, the payments will be processed and made the following working day (Day 3).
All payments are made subject to funds being available. All payments go through our internal fraud and Anti-Money Laundering checking processes which may delay the debit being applied in certain circumstances.
What’s the difference between Bacs, Bulk Faster Payments and CHAPS?
Depending on your business needs, one of our other payment services may be more suitable for you. For a side-by-side comparison of Bacs, Bulk Faster Payments and CHAPS, including speed, costs and typical use cases, see our Payment Services comparison table.
How much does Bacs cost?
Fees and charges for Bacs depend on the submission method you choose and the number of payments you make per month, as set out in the Bacs cost comparison tables below.
For more details of our fees and charges, please see our Standard Service Tariff.
Bacs cost comparison tables
Set up costs
These charges are set by NatWest, our Bacs service provider, and apply to all customers setting up Bacs for the first time.
| Element | Description | Bacs Direct Submission | Unity e-Payments: Tariff 1 | Unity e-Payments: Tariff 2 |
|
Bacs Service User Number (SUN) |
A unique, six-digit code that identifies a business within the Bacs payment system. |
£200 |
£300* |
£300* |
|
Template |
A standardised form that complies with Bacs requirements. |
N/A |
£125 |
£125 |
|
Automated Direct Debit Instruction Service (AUDDIS) |
The process that enables the electronic set up of Direct Debits once your organisation has received instructions from your customer. All customers originating direct debits must use AUDDIS. |
£200 |
N/A |
N/A |
|
Paperless Direct Debit |
The process that enables your organisation to receive your customers Direct Debit instructions over the telephone or internet i.e. there is no need for a paper instruction from your customer. |
£200 |
N/A |
N/A |
|
Smart Card |
A physical, chip-enabled security token for businesses to securely log into the Bacs Payment Services Website to sign, authenticate, and submit large batches of payments. Cards must be replaced every 3 years. |
£85 |
N/A |
N/A |
|
Smart Card reader and software |
An electronic device, typically connecting to a computer via USB, into which a smart card is inserted. The reader powers the card and acts as a secure interface, facilitating a two-way encrypted communication channel between the card and the computer’s software. This ensures secure PIN entry and data transfer, enforcing a high level of security for Bacs transactions. |
£35 |
N/A |
N/A |
|
Hardware Security Module (HSM) Certificate |
A bank-issued digital certificate stored in a Hardware Security Module (HSM) for securely signing and authenticating Bacs payment files. Certificates must be renewed every 3 years. |
£1,100 |
N/A |
N/A |
|
Total set up costs |
|
£1,820 |
£425 |
£425 |
* These charges include three SUNs and six users.
Running costs
| Element | Description | Bacs Direct Submission | Unity e-Payments: Tariff 1 | Unity e-Payments: Tariff 2 |
|
Monthly service charge |
The fee we charge for managing submissions to the Bacs system on your behalf. |
N/A |
£15 |
£30 |
|
New Smart Card** |
A physical, chip-enabled security token for businesses to securely log into the Bacs Payment Services Website to sign, authenticate, and submit large batches of payments. Cards must be replaced every three years. |
£85 |
N/A |
N/A |
|
Hardware Security Module (HSM) Certificate** |
A bank-issued digital certificate stored in a Hardware Security Module (HSM) for securely signing and authenticating Bacs payment files. Certificates must be renewed every three years. |
£1,100 |
N/A |
N/A |
** These costs are payable every three years when renewing the facility.
Transaction based costs
The total fees charged depend on the number of files submitted to Bacs and the number of transactions within each file.
| Element | Description | Bacs Direct Submission | Unity e-Payments: Tariff 1 | Unity e-Payments: Tariff 2 |
|
Cost per transaction |
The charge for processing automated payments through the Bacs system. Each record of the file is classed as a transaction. |
15p |
60p*** |
25.2p*** |
|
Cost per file |
The charge for processing automated payment files through the Bacs system. Each file is charged individually, regardless of the number of transactions it contains. Each record of the file is classed as a transaction. |
£8 |
£3 |
£3 |
|
Exceeding your agreed credit limit |
A requested Bacs payment batch is rejected because processing it would have caused the business’s account to go over its pre-agreed credit or payment limit with the bank. |
£100 |
£100 |
£100 |
|
Transfer of sponsorship |
The process where a company (the “sponsor”) helps another business get access to the secure Bacs system by letting them use the sponsor’s SUN. This allows the new business to process payments like payroll or bills without needing their own direct bank connection, ideal for smaller firms or those new to Bacs, as the sponsor manages the risk and settlement. |
£100 |
N/A |
N/A |
|
File extractions, stops or reinputting |
Specific intervention instructions used within the Bacs system to manage payment submission files during their three-day processing cycle. These actions allow you to intervene if there is an error, a recall request, or a need to change the processing date. |
£195 |
N/A |
N/A |
|
Recalling a Bacs payment |
A request made to stop or reverse a Bacs payment, typically due to error, fraud, or incorrect details. |
£20 |
N/A |
N/A |
|
File referral fee |
Occurs when there’s an issue with processing a payment instruction submitted via a Bacs file, such as insufficient funds in the sending account. Essentially, the bank is “referring” the payment request for special consideration that requires human intervention. |
£45 |
N/A |
N/A |
For example, for a direct submission file with 57 records, the transaction fee would be (57 x 15p per transaction) = £8.55, plus £8.00 to process the file resulting in a total cost of £16.55.
Depending upon the volume of transactions you complete, one tariff may be more effective for you.
- Tariff 1: If you make fewer than 75 transactions each month.
- Tariff 2: If you make 75 or more transactions each month.
*** These charges apply to all debit and credit payments and AUDDIS transactions. Please note, you will need to be set up as an AUDDIS originator to use Unity e-Payments for direct debit collection.
Ready to get started with Bacs?
To get started, simply complete our Bacs Enquiry Form and we’ll be in touch soon to discuss your needs.
Already using Bacs with Unity?
If you need support with you Bacs Direct Submission, please contact your Unity Relationship Manager if you have one, or email us at us@unity.co.uk.
Help & support with Bacs
For more information about using our Bacs payments service, read our Frequently Asked Questions below.
-
A Service User Number (SUN) is a unique, six digit code that identifies a business or organisation when they collect payments via Direct Debit or make payments via Direct Credit. It is used to ensure the correct business name appears on the payer’s bank statements when transfers are made.
-
Complete our Bacs Enquiry Form and we will request a SUN on your behalf.
-
The Bacs credit limit is the maximum payment amount users are allowed to send through the Bacs system. The Bacs system itself allows payments up to £20 million per transfer. At Unity, the maximum payment you can make depends on your credit limit with us, which you can check within Online Banking.
If you would like to review your credit limit, please contact your Unity Relationship Manager if you have one, or email us at us@unity.co.uk.
-
The cut-off time for daily submission is 3pm Monday to Friday. Any submissions after 3pm will not be processed until the next working day. This means that if a Bacs payment is sent:
- On a Monday before 3pm, it should arrive by Wednesday of the same week.
- On a Monday after 3pm, it should arrive by Thursday that of the same week.
- On a Friday before 3pm, it should arrive by Tuesday of the following week.
- On a Friday after 3pm, it should arrive by Wednesday of the following week.
Once a payment has been submitted on Day 1, the payer has up to 3pm on Day 2 to recall or amend that payment. After this time, all payments are processed and will be made the following working day (Day 3).
For example, if a business wanted to pay salaries on a Friday, they would submit the file on the Wednesday before (Day 1). The payer can recall or amend that payment up until 3pm on Thursday (Day 2), after which, the payments will be processed and made the following working day (Day 3).
All payments are made subject to funds being available. All payments go through our internal fraud and anti-money laundering checking processes which may delay the debit being applied in certain circumstances.
-
Complete our Bacs Enquiry Form and we’ll be in touch soon to discuss your needs.
-
Yes. Pay.UK maintains a directory of Bacs Approved Bureaux (BABs), which are third-party organizations handling Direct Debit/Credit submissions for businesses.
Other Unity payment services
Bulk Faster Payments
CHAPS Payments
International Payments
Accepting Card Payments
Corporate Purchasing Cards
Direct Debits and Standing Orders
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