Bacs stands for Bankers' Automated Clearing Services, and is operated by
Pay.uk, which is responsible for the UK’s retail interbank payment systems.
Bacs is the organisation behind Direct Debits and Direct Credit in the UK, and a Bacs payment consists of two types of bank-to-bank payments – Direct Debit and Direct Credit.
As described above, a Direct Debit is an Instruction from a customer to their bank authorising an organisation to collect payments. A Direct Credit, meanwhile, is one of the most common ways for UK businesses to send regular payments, such as salaries, pensions and suppliers.
Bacs payments are one of the cheapest ways to collect or make payments.
