What is Bacs? Guide to Bacs payments - Starling Bank (2025) (original) (raw)

Table of Contents

What is a Bacs payment? What does Bacs stand for? Which banks use Bacs? Try our award-winning current account How long does a Bacs payment take? Can Bacs payments go in any time of day? How to make a Bacs payment How much does a Bacs transfer cost? Is Bacs the same as a bank transfer? Other resources: Apply for a Starling bank account today and enjoy app-based banking at its best. FAQs

Bacs payments are one of the most common ways of sending and receiving payments in the UK. Here, we’ll give you an overview over Bacs and Bacs payments - including what they are, how they work and how long they take.

What is a Bacs payment?

A Bacs payment is a bank-to-bank transfer between banks in the UK. There are two main Bacs payment types, characterised either by:

Direct Debit: When you have given another party permission to take money from your bank account. Examples of Direct Debits could be your monthly council tax payment, internet bill, utility bill, and so on.

Direct Credit: Also referred to as a “bank transfer”, this is when another party deposits money into your account. Examples of a Direct Credit could be refunds, salary payments, pension payments, and so on.

What does Bacs stand for?

Bacs stands for Bankers’ Automated Clearing System. It refers to the network of banks and building societies that participate in the Bacs payments scheme.

Bacs was founded in 1968 but became a subsidiary of Pay.UK (the UK’s leading provider of payments infrastructure) in 2018.

Which banks use Bacs?

According to Bacs’ website, these are the banks and financial institutions that participate in the Bacs payment scheme:

Our sort code checker can also tell you if a bank accepts Bacs payments. Just enter the bank’s sort code to find out.

What is Bacs? Guide to Bacs payments - Starling Bank (1)

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How long does a Bacs payment take?

Usually, a Bacs payment takes three working days to go through. This applies both to Direct Debits and Direct Credits.

The Bacs payment processing time typically goes like this:

This process is usually completed within three working days.

FAQs

What is Bacs? Guide to Bacs payments - Starling Bank? ›

Bacs payments are a safe and reliable way of transferring money. To make a Bacs payment you'll typically need to know the other party's name, bank, account number and sort code. You'll also need the same details for the account you're withdrawing from.

How to make a Bacs payment from the USA? ›

There are two options to process Bacs direct credit payments, or “Bacs out”. You either run it through your bank, or you go to a Bacs Approved Bureau to process your Bacs payments. Either way, in order to make a Bacs payment as a business you'd have to sign up with Bacs in one way or the other.

How do I complete a Bacs payment? ›

To make Bacs Direct Credit payments you submit your payment data - including amount of each payment, PSP account numbers, sort codes and dates - via a bureau or direct access depending on which method you choose. The data is sorted into payments to each of the PSP and then transmitted to each institution.

Does Starling bank accept Bacs payment? ›

24/7 access to the Faster Payment System (FPS)

We can also facilitate Bacs payments and inbound CHAPs payments.

What is an example of a Bacs payment? ›

If you pay the household bills or use a subscription service, you will have made a payment via BACS before. This is where you give permission for a company to automatically take payments from your account on an agreed schedule, such as each month. Examples include mortgage payments, utility bills or council tax.

What is the US equivalent of BACS? ›

The equivalent system to the UK's Bacs is the Automated Clearing House, or ACH. This network only works within the United States, so you won't be able to send payments to UK clients using ACH. It also only applies to banking rather than debit or credit card payments.

Is BACS the same as a bank transfer? ›

Is Bacs the same as bank transfer? Bacs is the same as a bank transfer and both can be used to mean the same thing. Money is transferred in the standard bank to bank way via the internet or phone banking. The only thing to note is that other types of bank transfers that you may hear about are Faster Payments and CHAPs.

Can an individual make a Bacs payment? ›

Your bank allows you to credit another account using either your personal or your business banking service. You'll need the name of the payee, the name of their bank, the payee's bank account number and the sort code.

What is the maximum amount you can pay by Bacs? ›

BACS payments take longer than CHAPS payments to clear and are normally used for low-value transactions (by banking standards, at least). The upper payment limit for BACS payments is £250,000 per transfer.

What is Bacs format? ›

ISO 20022 is an international messaging standard being used increasingly in the UK. Bacs payments messages however use a format known as Standard 18.

Which banks are linked to Starling Bank? ›

We currently support integrations with:

What payment method is Starling? ›

We provide you with the ability to payout Direct Debits and Direct Credits, operated by Bacs Payment Schemes Limited.

Why can't I transfer money from my Starling account? ›

The most common reason is there is not enough money in your account or incorrect payee details.

How do you know if a payment is BACS? ›

A Bacs payment is a bank-to-bank transfer between banks in the UK. There are two main Bacs payment types, characterised either by: Direct Debit: When you have given another party permission to take money from your bank account.

Why do people still use BACS? ›

Bacs allows you to schedule regular payments via its direct credit or direct debit payments options. This is the reason why the UK Government uses Bacs for pension and welfare payments, and why it is the most popular payment method for employers paying employees.

Is BACS the same as sort code? ›

The allocation of sort codes is managed by BACS. These numbers are six digits long, formatted into three pairs which are separated by hyphens.

Does BACS work outside the UK? ›

While Bacs Direct Debit is a UK-centric system, businesses outside the UK can accept Bacs Direct Debit payments from UK-based customers under certain conditions.

How to send money from US Bank to UK bank? ›

Best ways to send money to the UK from the US

  1. Direct Debit. Direct Debit is a convenient option that lets us take money from your account once you have authorised the payment on our site. ...
  2. Bank Transfer. ...
  3. Debit Card. ...
  4. Credit Card. ...
  5. Apple Pay. ...
  6. Google Pay.

Can you make a BACS payment with American Express? ›

Please use the following bank details:

Use your 15 digit American Express Card number as the reference. Your Faster Payment or BACS payment will update your balance as soon as it has been received.

Can I do BACS online? ›

Bacs Direct Credits via Online Banking. Make single or bulk Bacs Direct Credit payments via Online for Business. Suitable for businesses that do not have a Bacs Service User Number and are looking to make Bacs Direct Credit payments in small volumes.

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