Bacs Payment System

The Bacs Payment System (Bacs) is an electronic transfer service used to make payments between accounts. One of the most popular payment methods in the UK, Bacs payments typically fall into two categories: Direct Debit and Direct Credit.

The service is made available to millions of individuals, businesses, and charities across the UK, by the range of high street banks, building societies, challenger banks and other fintechs and payment service providers (PSPs) that connect safely and securely either directly, or indirectly, to Bacs.

Over 160 billion transactions have been debited or credited to British bank accounts via Bacs since its inception in 1968. In 2023 alone, the payment system facilitated 6.8 billion payments, at a value of £5.5 trillion.

This included 4.8 billion Direct Debits, representing a new annual high for the payment method, which celebrated its half century in 2020.

With over 85 billion transactions made this way over the last five decades, today, the popular payment method is used for a wide range of outgoing payments, such as mobile phone bills, broadband bundles, dual fuel, water, council bills, subscriptions, half a dozen different types of insurance, and even holidays.