A Bacs bureau, or Bacs-approved bureau, is an organisation that has achieved rigorous standards and is authorised by Bacs to submit payments on behalf of other businesses or third parties.
A Bacs payment is a UK bank-to-bank payment transfer. There are two main types of Bacs payments: Direct Debits and Direct Credits. A Direct Debit is a payment that has been authorised by a customer to leave their account to pay for goods or services.
A Direct Credit is a payment that is also known as a bank transfer. This occurs when an organisation pays money into a recipient’s bank account. This could be a salary payment, supplier payment, pension deposit or a refund in the UK.
Bacs, or the Bankers Automated Clearing System, was set up in the 1960s and is now operated through Pay.UK. In essence, Bacs is a network of UK building societies and banks that are approved as participants in the Bacs payment scheme.
In this article, we explore how a Bacs bureau works and how businesses can benefit from partnering with a Bacs-approved bureau to better support their payment systems.
Contents
- How does a Bacs bureau work?
- How do I know if an organisation is a Bacs-approved bureau?
- Partner with an expert Bacs-approved bureau: Interbacs.
How does a Bacs bureau work?
Once an organisation has Bacs approval to operate as a Bacs approved bureau, the business will operate software and systems to submit payments to Bacs on behalf of its customers, acting as a BPO provider. Typically, where an entity looks after payments for other companies, Bureau status is required when submitting BACS payments for third parties. These systems must also be Bacs approved and have to be assessed and ratified every three years by Pay.UK to ensure they achieve the correct level of security, compliance and maintain robust standards.
A payment submission process is likely to follow these steps:
- Your business creates and sends a payment file, such as a customer payment or collection, to your Bacs bureau.
- The bureau uploads this file to the Bacs system.
- Bacs should check the file and notify the relevant banks.
- The funds are transferred over the usual three-day cycle associated with Bacs.
- Any associated Bacs reports are created (AUDDIS, ARUDDs, etc.) and can be actioned by either the Service User or its appointed Bacs Bureau
When looking to outsource, there are typically two options for businesses looking to gain support with their Bacs payment processes:
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Bacs-approved bureau
Your business has its own Service User Number (SUN) (what is a service user number) and hires a Bacs-approved bureau to handle secure payment files through the Bacs system on your behalf. You would use the selected bureau’s own approved systems, security and software for submission and report generation.
This is a good choice for larger organisations that have bank sponsorship and process significant payment volumes but want a bureau to take over processing administration, accountability and allow for an expert hand to oversee your bacs workflows.
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Bacs facilities management service
If your business doesn’t have its own SUN, you can partner with a facilities management company that enables you to process payments under their SUN. This organisation is likely to be a specialist in the field and will assume responsibility for the entire payment process for your business.
This choice is helpful for smaller, medium or newer enterprises who may need expert guidance and full management support in order to submit payment files to Bacs. There is no need to gain sponsorship from a bank when working with a facilities management service provider.
Read our recent blog to understand the benefits of direct debit management services.
How do I know if an organisation is a Bacs-approved bureau?
If your business is searching for a Bacs-approved bureau, there are a number of features you can confirm to ensure you gain the right provider for your needs:
- Check the official Pay.UK Bacs Approved Bureaux Directory, which lists all approved and audited bureau alphabetically. This shows you that each bureau meets high operational and security standards so that they are able to submit Direct Debit and Direct Credit payments to Bacs.
- A vetted bureau is allowed to display the official ‘Bacs-approved bureau’ logo on their websites and company documentation.
- A Bacs-approved bureau must be authorised by a Bacs member bank. This information can be found in the Bacs Approved Bureaux Directory.
- Pay-UK inspects Bacs-approved bureaus every three years to make sure the organisation upholds strict standards and regulations to ensure correct processes are consistently followed.
- The bureau should be able to share confirmation with your business that their software has been approved for use by Pay.UK. This information is also generally available on the Bacs Approved Software list provided by Pay.UK.
Partner with an expert Bacs-approved bureau: Interbacs
Our Bacs-approved services are ideal for businesses that need reliable and secure payment processing. Whether you're a small business or a large corporation, we have the expertise to support your needs.
The services you can find at Interbacs include Direct Debits, Bacs payments, Bacs Direct Credit, and faster payment transactions, providing comprehensive solutions for all your payment requirements.
With a proven track record in successful Bacs payment management for all types and sizes of businesses and with a compelling industry reputation, Interbacs are well-positioned to support all of your business account needs.
Contact Interbacs today for a personalised consultation and discover how we can optimise your direct debit processes.
