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What is Bacs? How UK salaries and Direct Debits are paid

By SendPay Business · · 2 min read

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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.

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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.

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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.

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How it works

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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?

How businesses collect regular payments from a bank account.

What is a Direct Debit? →
What is Faster Payments?

The system behind most instant UK transfers.

What is Faster Payments? →
What is CHAPS?

The UK system for same-day high-value payments.

What is CHAPS? →

Read next

Spotted a mistake or something out of date?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.