Bacs - Bankers Automated Clearing System

What is Bacs?

Bacs is a simple cost effective funds transfer service which enables you to make regular or occasional electronic payments directly into bank and building society accounts.

How it works

Using Bacs is straightforward. All you do is provide the payment details to Bacs electronically. This can be done either from your own computer using the web-based software BACSTEL IP, or via a computer bureau. You confirm details of all the customers to whom you wish to send money or from whom you expect to receive money, as well as the relevant account details, and the amount and date on which you wish the payment to be credited or debited. Once the information is received, it is validated and confirmed.

The process operates within a three day cycle:

• Day 1: input day when files will be submitted to Bacs
• Day 2: processing day, where the file is transmitted to the customer's bank
• Day 3: debit/credit day

Benefits for business

As the whole process is electronic, it removes the need for repetitive form filling, writing cheques and also reduces the number of payments going missing. The knowledge of when payments are going through helps the management of cashflow and offers better financial control, not only to your business, but also to your customer.

A range of uses

Bacs isn't just meant for salaries. You can also use Bacs Direct Credit to pay pensions, employee expenses, dividends and supplier payments.

Bacs Direct Credit offers the following benefits:

• Saves time and money administering payments
• Optimises cash flow management and financial control
• You can instruct up to 20,000 payments or collections per file transmission
• Improves trading relationships by helping suppliers' cash flow
• Avoids the risk of theft or loss usually associated with cash
• Instructions can be submitted up to 30 days in advance
• Easy to use

Switching is simple

Switching to Bacs is simple and there are various Bank of Scotland services to choose from, depending on the number of transactions.

Bacs Direct and Indirect

Businesses making over 100 transactions per month can choose between direct and indirect online access. To submit your payment files directly to Bacs Ltd, from your own site, you'll need a PC, modem and Bacs approved BACSTEL-IP software. If you'd prefer not to buy the software, you can outsource the processing of your payment files to an approved Bureau. Either way, the data transfer is fast, secure and reliable, and you will also benefit from online reporting and confirmation receipts.

Bacs Entry

Businesses making between 15 and 150 transactions per month can take advantage of our Bacs Entry service, for Direct Credit only. This service requires no software, you just fax your payment details and we will prepare and process payments on your behalf.

Discover how Bacs can save you money

If you'd like to find out how Bacs could save your business money, visit the Bacs website on www.bacs.co.uk

Further information

To find out more about any aspect of Bacs, please contact your Relationship Manager, or contact our Bacs Service Unit on 0870 850 0631†, or email us