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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

Simple
You can submit all transactions in one file

You retain control
You decide when funds will leave your account

Flexible
Can be used for regular and off-one payments

Cheaper than cheques
Eliminates the costs of cheques, stationery and postage

Safer than cash
No need to store currency onsite

Cut down on reconciliation
A single debit from your account so no individual payments to track

Advance Submission
Submit payments up to 30 days in advance

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.