What Details Are Needed For A Bacs Payment?

Making payments convenient for customers is key to building confidence, simplicity and loyalty. Research from the Payment Systems Regulator reveals that consumers prioritise ease and speed when they want to make payments. 

Alongside this, consumers also say that budgeting and security are important in their choice of payment method. This is illustrated in recent data that shows 92% of consumers report using Direct Debits - a form of Bacs payment - at least once a month. 

Highlighting the popularity of Bacs payments, the evidence demonstrates the trust that consumers place in these transactions. Organisations that are looking to optimise the customer experience and tap into customer trust levels, may want to integrate Bacs payment options into their offering for increased customer engagement and longevity. For businesses considering this integration, it’s worth understanding the process in more detail —for example, can a Bacs payment be stopped once it’s initiated, or can banks see pending Bacs payments during processing?

In this article, we explore what details are necessary to process a Bacs payment, what different types of Bacs payments exist, and how Bacs payments can positively impact and streamline your payments infrastructure. 

Contents

• What are Direct Debits and Direct Credits?
• What is a Bacs Service User Number?
• What details are needed for a Bacs payment?
• Time-saving Bacs payments with Interbacs. 

What are Direct Debits and Direct Credits?

Bacs payments come in two forms: Direct Debits and Direct Credits. As a business, you can offer customers a Direct Debit option to pay for your goods or services. A Direct Debit is set up using a Direct Debit mandate form, which contains the essential information (such as name and account number) required to organise a Direct Debit payment. 

Direct Credits are typically used by organisations to credit someone’s account, usually for supplier payments, to pay salaries and pensions. These are organised in a similar way to a Direct Debit, as the payee’s bank details are required. 

What is a Bacs Service User Number?

In order for an organisation to take Direct Debit payments, a Service User Number (SUN) is required. This is a six digit number provided by Bacs that identifies the organisation so that they can make electronic transfers in the UK. The SUN is a unique identifier of an approved business, and you won’t be able to take Direct Debit payments without one. 

There is a simple solution if your enterprise doesn’t have its own SUN. This is to partner with a Direct Debit Facilities Management provider to use their SUN. The provider could also manage Direct Debit payments for you as well as the attached administrative effort such as sending advance notices, managing reports and digital sign-up processes. 

You can apply to Bacs to obtain your own SUN with details about your business and with the sponsorship of a bank or third-party provider. This may not suit every business, especially those that are more moderate in size or are in the first few years of scaling. Ultimately, it’s important to gain the right service to suit your business needs. 

What details are needed for a Bacs payment?

In essence, the type of information required for Direct Debit and Direct Credit payments is very similar, but the specifics are slightly different. 

Here are the details you will need to complete each type of Bacs payment:

Direct Debit

You can collect customer payments for your goods and services using Direct Debit. There needs to be an official Direct Debit instruction in place before any payment can be taken. This instruction contains the information needed to process the transaction, including: 

• Customer or payer’s full name and address
• Customer’s bank name
• Customer account number and sort code
• Agreed transaction amount, frequency and date of payment

Direct Credit

You can use Direct Credit to pay a sum into another person’s bank account. This could be a customer credit, an employee salary payment, or other type of transaction. In order to complete a Direct Credit payment, you will need the following information:

• Recipient name
• Recipient bank name
• Recipient bank account number and sort code

Time-saving Bacs payments with Interbacs

One fact you may not know is that Interbacs is both a Bacs-approved bureau and a Direct Debit facilities management provider. This means we offer a wealth of payment services that are tailored to your organisational needs, delivering efficient and cost-effective payment solutions. 

As a Bacs-approved provider, we ensure your transactions are processed smoothly and securely, consolidated by high standards of regulatory compliance. Our services include Identity Verification, Direct Debits and Direct Credits, Bacs payments, digital sign-up portals, Bureau services and faster payments transactions.

For organisations without a SUN, our Direct Debit facilities management service will manage your entire Direct Debit process. This covers everything from setting up Direct Debit instructions to collecting payments from your customers, providing financial reporting and ultimately providing you with a hassle-free payment solution. 

Supporting businesses of all sizes, our expertise in debit payments and bank account management can help you save time and money.

Our friendly team is always on hand to listen to your requirements and deliver efficient, sensible solutions. You can also explore our Solution Finder to discover payment management services that can transform your business.

Contact our team today to discuss how streamlining your payment processes can reduce administrative burdens and free up time to achieve your business goals.

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