BACS payment
What is a BACS payment?
A BACS payment (short for Bankers’ Automated Clearing Services) is a type of electronic bank transfer used in the UK to send money from one bank account to another. It’s commonly used for things like receiving wages via direct deposit, paying bills straight from your bank account, or transferring money into savings or pension accounts. BACS payments can be either one-off or set up to recur regularly.
In the UK, BACS payments are one of several systems used for electronic transfers, alongside Faster Payments and CHAPS. Each system offers different speeds and costs, depending on how quickly the money needs to reach its destination and the amount being sent.
BACS payments: Key benefits & considerations
Many individuals and businesses choose BACS payments over cheques, credit cards, or other methods because:
- They’re typically faster and more convenient than posting cheques.
- Fees are usually low or non-existent compared to international wire transfers.
- They’re ideal for regular payments like salaries, subscriptions, or utility bills.
However, BACS payments usually take up to three working days to clear. There can also be limits on how much you can transfer in one transaction, and there may be cut-off times to ensure the payment goes through on schedule.
