Bacs Direct Submission
Full control over your Bacs payments
We support organisations submitting Bacs payment files directly to the Bacs system, giving greater control, visibility and efficiency.
What is direct submission to Bacs?
A Bacs payment is a bank-to-bank transfer between banks in the UK. These can be done directly or indirectly:
- 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.
- 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.
Direct submission allows organisations to handle high-volume, regular, non-urgent payments and is good for those that want control over their payment schedules.
How can direct submission help my business?
- Efficiency: Submit multiple payments in one file, saving time on manual processing.
- Access control: Schedule payment dates to suit your business cash flow and obligations.
- Accuracy: Reduce errors with automated file-validation and Bacs-approved software.
- Security: Payments are encrypted and validated to meet Bacs compliance standards
- Cost effectiveness: Minimise processing costs for bulk, regular payments compared with individual transactions.
How does direct submission work?
Bacs Direct submission requires an initial investment in software, setup, and ongoing maintenance, but once those systems are in place, the cost of processing each individual transaction becomes significantly lower. Over time, the reduced per‑transaction expense can offset the upfront spending and lead to substantial long‑term savings.
Direct Submission lets organisations send bulk payment files directly to the Bacs system via Bacstel-IP over 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.
Connecting to the Bacs system via Bacstel-IP
To submit files directly to the Bacs system, you will need to set up a channel to send and receive data from the Bacs payment system. Only software solutions that have passed a number of rigorous testing and approval processes are enabled to connect to the Bacs Payment System. We are unable to provide advice on which software solution may be best for your business. Please refer to the Pay.UK website for more information.
What do I need to include in a Bacs direct submission file?
The Bacs submission file must be in .csv format and must contain the details highlighted in the “Fields to include in your Bacs Direct Submission .csv file” box.
The files must contain no more than 100 transactions per file and there is no limit to the number of files you can upload per day.
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.
Fields to include in your Bacs Direct Submission .csv file:
Recipient Sort Code
Recipient Account Number
Recipient Account Name
Payment Amount
Payment Reference
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.
Is there an alternative to submitting Bacs files directly?
Yes. Bacs indirect submission provides an alternative route for organisations that don’t want to manage direct file submissions. Payments are made through our Unity e-Payments service and are processed through the Bacs system on your organisation’s behalf.
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 direct submission cost?
The exact costs associated with direct submission of Bacs transfers depends on the individual needs of your organisation. In general, you will need to pay set up costs, running costs and specific costs based on the number of transactions you process.
We’ve outlined the key costs for direct submission below, and you can compare the cost of Bacs direct submission to the cost of Unity e-Payments using our Bacs cost comparison table.
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.
| All new users will need to: | Cost for Bacs Direct Submission |
|
Register with Bacs Payment Services to get a Bacs Service User Number (SUN), a unique, six-digit code that acts as your official ID within the Bacs system, ensuring payments are correctly attributed and identifiable on bank statements. |
£200 |
|
Purchase a Smart Card and Smart Card reader, a secure login setup for the Bacs payment services website, consisting of a chip‑enabled Smart Card used to authenticate and authorise payments, and a USB‑connected Smart Card reader that powers the card and provides an encrypted interface for safe PIN entry and data transfer. |
£120 |
|
Obtain a Hardware Security Module (HSM) certificate, a bank‑issued digital certificate stored within an HSM, used to securely sign and authenticate Bacs payment files, with renewal required every three years. |
£1,100 |
|
Register with the Automated Direct Debit Instruction Service (AUDDIS) if you want your customers to be able to set up Direct Debits (DD) with you. |
£200 |
|
Register for Paperless Direct Debits, if you want your customers to be able to set up Direct Debits (DD) with you electronically. |
£200 |
|
Total estimated set up costs |
£1,820 |
Running costs
These charges apply to all customers using Bacs.
| All users will need to: | Cost for Bacs Direct Submission |
|
Renew their Smart Card every three years |
£85 |
|
Renew their Hardware Security Module (HSM) Certificate every three years |
£1,100 |
|
Total estimated running costs every three years |
£1,185 |
|
Average running costs per year |
£395 |
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 | Cost for Bacs Direct Submission |
|
Cost per transaction |
The charge for processing automated payments through the Bacs system. Each record of the file is classed as a transaction. |
15p |
|
Cost per file |
The charge for processing automated payments through the Bacs system. Each record of the file is classed as a transaction. |
£8 |
|
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 |
|
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 |
|
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 |
|
Recalling a Bacs payment |
A request made to stop or reverse a Bacs payment, typically due to error, fraud, or incorrect details. |
£20 |
|
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 |
For more details of our fees and charges, please see our Standard Service Tariff.
Is my organisation eligible to use Bacs direct submission?
To use Bacs with Unity you need to:
- Be a UK resident.
- Be a UK-based company, sole trader, business partner or director.
- Hold or open and maintain a business current account with us.
All applications are subject to Credit Approval. We reserve the right to decline any application and all facilities, once issued, are repayable on demand.
Eligibility also depends on several other factors and varies depending on whether you’re making or collecting payments.
Making Payments
Bacs Direct Credit (Payments Out)
Bacs Direct Credit is a safe and reliable way to send money electronically straight into someone’s bank account. Businesses often use it to pay salaries and supplier invoices.
Approval is considered on a case‑by‑case basis, taking into account:
- Your organisation’s required limit.
- Your organisation’s annual turnover, supported by a review of your latest accounts.
- A final credit assessment, which determines overall approval.
- If you’re an existing customer, you should have 12 months banking history with Unity to determine if you’re eligible to use the service. If the limit requested exceeds your approved credit limit, then the previous two years of accounts/approved financial statements are required.
- If you don’t have an existing loan or overdraft with us, the eligibility is dependent on a credit application.
Collecting Payments
Bacs Direct Debit (Payments In)
This is a system businesses use to collect different or regular payments, such as subscription fees or monthly bills, directly from a customer’s bank account, once they are approved as a Direct Debit Originator (DDO).
Eligibility criteria:
- Your organisation has an annual turnover of £1 million or more.
- Unity Trust Bank is your organisation’s main banking provider, with your primary current account used for most incoming and outgoing payments.
- You have processes in place to manage batch reports and Bacs software/setup, including having a Smart Card, Smart Card reader, and appropriate related software.
- Your organisation is able to perform customer due diligence checks under Know Your Customer (KYC) and Anti-Money Laundering (AML) rules:
- Verify customers’ identities when establishing direct debit mandates.
- Maintain accurate records of customer identity verification.
- Comply with the relevant UK GDPR rules.
Ready to make a Bacs direct submission?
To get started, simply complete our Bacs Enquiry Form and we’ll be in touch soon to discuss your needs.
Other Unity payment services
Unity e-Payments
Bulk Faster Payments
CHAPS
Accepting Card Payments
Corporate Purchasing Cards
International Payments
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