What is Bacs? How UK salaries and Direct Debits are paid
By SendPay Business · · 2 min read
- 1Set up the plan once
- 2It renews on the same day each month
- 3Payments arrive without chasing
Bacs is the UK payment system that handles Direct Debits and Bacs Direct Credits, the payments most employers use to pay salaries. It processes payments in batches, which is why a Bacs payment usually takes about three working days.
The three-day cycle
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Day one
the business submits its batch of payments.
Day two
Bacs processes the batch and sends it to the banks.
Day three
the money leaves the payer's account and arrives in the payee's.
What it's used for
Salaries and pensions paid by Bacs Direct Credit, and bills and subscriptions collected by Direct Debit. It suits regular, planned payments where speed matters less than cost and reliability.
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Bacs, Faster Payments and CHAPS
Faster Payments moves most one-off transfers within seconds. CHAPS makes same-day high-value payments, usually for a fee. Bacs is the slower, lower-cost choice for large volumes of planned payments.
Where SendPay fits
SendPay platforms include accounts, payments and subscriptions under your own brand, powered by licensed partners. You can preview your platform before you launch.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
Could taking bank payments cost less than cards?
Compare card fees with pay by bank.
Pay by bank savings calculator →What is a Direct Debit?
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Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.