Introduction to Direct Credits

Bacs Direct Credit is a system which enables businesses, large and small, to make payments by electronic transfer directly into bank or building society accounts. It’s simple, secure, and reliable, and it reduces the time and costs associated with traditional methods of payment processing.

Bacs Direct Credit is increasingly used by businesses operating in a range of sectors for all types of business payments. Most commonly it is used for paying salaries to employees and regular payments to suppliers. There are however a wide variety of other applications where Bacs Direct Credit is the most cost effective solution. These could include pensions, employee expenses, insurance settlements, dividends and refunds.

About Bacs

Bacs is the not-for-profit organisation responsible for the administration and operation of the Direct Credit Scheme.

Bacs is owned by a number of the leading banks and building societies in the UK. These are called the Member banks. There are hundreds of other banks (and building societies) that can offer accounts that support Direct Credits however.

Bacs has grown in strength since its creation. The Government has acknowledged that the Bacs payment system is of critical importance to the UK financial system. On one day alone, on June 30th 2017, Bacs processed a massive 111.7 million Direct Debits and Bacs Direct Credits transactions in one day.

The Benefits of Direct Credit

Box Icon Simple

Simple

You can submit all transactions in one file

Box Icon You retain control

You retain control

You decide when funds will leave your account

Box Icon Flexible

Flexible

Can be used for regular and off-one payments

Box Icon Cheaper than cheques

Cheaper than cheques

Eliminates the costs of cheques, stationery and postage

Box Icon Safer than cash

Safer than cash

No need to store currency onsite

Box Icon Cut down on reconciliation

Cut down on reconciliation

A single debit from your account so no individual payments to track

Box Icon Advance Submission

Advance Submission

Submit payments up to 30 days in advance

Box Icon Possibility to Recall Errors

Possibility to Recall Errors

Window to recall payments if needed (with bank approval)

Important Direct Credit Terms

The following are common terms within the area of Direct Credits.  Understanding these terms will help you better understand the Scheme itself.