BACS transfer services are an efficient solution of paying invoices directly into your bank account by direct credit.
Banks Automated Clearing System (BACS) was originally set up by the UK banking industry as a more secure and effective way to process payments of multiple financial transactions. BACS payments are generally used to automate banking payroll systems and replace the traditional paper-based method of billing payments through the collection of cheques or cash.
BACS is universally trusted as the most risk-free form of payment processing, and many businesses now regularly make use of convenient BACS payments for electronic money transfers.
90% of workers within the UK are paid using BACS transfer
BACS payment services are operated alongside all the leading high street banks and helps process millions of direct payments each week for business, local council and financial institutions.
Advantages of BACS Payment Services
- BACS automates regular secure payments for goods or services.
- Helping to reduce banking charges by up to 80% when compared to more conventional bank payments such as cheques or cash payments.
- BACS reduces the administration time of transferring bulk payments.
- Automated payments remove the need to write and post cheques.
- Direct payments are cost effective by delivering payments electronically.
- BACS transfers are secure payments that eliminate the risk of outstanding cheques being delayed or mislaid within the postal system.
How long does BACS take to transfer payments?
BACS is a fast and sufficient money transfer system and one of the most important solutions in bank transactions and payment systems. BACS payments can be transferred within 3 days.
Upon submission of a BACS file, a three-day clearing processing cycle is to be done within three consecutive working days. During the processing cycle, a report of arrival and input will be made to validate and confirm that the processing data is updated.
Three-day BACS payments cycle process:
Day 1: This is called the “INPUT DAY” that receives receipts of payment and files that will be carried on to the third day.
Day 2: This day is intended for processing, which passes all the payments to its destination banks.
Day 3: This day is intended for application and approval of all direct credit and direct debit cards with contra records as well.
Faster Payments Service
BACS has implemented Faster Payments Service, which will help in immediate transfer of money from one account to another in a matter of hours or days. This service will lessen any delay transactions since it accepts instant bank to bank transfers.