Bacs payment methods, such as Direct Debit and Direct Credit, are frequently used as a practical and timely way for customers to pay businesses for goods and services they want to access.
Not only are Bacs payments useful for customers, they are also highly appealing for organisations as they provide them with consistent cash flow streams and a strong level of predictability when it comes to financial forecasting.
According to Pay.UK’s latest data publications, there are approximately 150,000 UK businesses that submit payments through Bacs. The statistics show that over half (around 75,000-100,000) of these enterprises use a Bacs bureau to submit payment files on their behalf.
In this article, we explore key Bacs bureau information and consider when it’s helpful for businesses to partner with a Bacs bureau to achieve operational and revenue targets.
Contents
- What is a Bacs bureau?
- What are the benefits of a Bacs bureau?
- When should your business use a Bacs bureau?
- Gain the support you need with Interbacs Bacs bureau.
What is a Bacs bureau?
A Bacs bureau is a company that has been approved by Bacs to manage and submit Direct Debit or Direct Credit payments through the Bacs system on behalf of another business.
This verified third party will manage and submit payment files alongside reporting to ensure payments are securely processed. This capability enables your business to reduce payment processing workloads and outsource to an experienced Bacs bureau team.
A Bacs bureau delivers a different service from a Direct Debit facilities management provider, although a very small number of UK companies can provide both services (such as Interbacs). To explore this model in more detail, read “What Is Direct Debit Facilities Management? A Guide for UK Businesses.”
A Bacs bureau will submit payment files under a business’s Service User Number or SUN. If you want to understand this identifier in more detail, read our guide “What Is a Bacs Service User Number? Everything You Need to Know.” A facilities management provider, meanwhile, manages the entire payment cycle from payment collection to fund transfer to your business, where the business has no SUN and would constitute their only option, should they wish to offer a direct debit option to their customers.
What are the benefits of a Bacs bureau?
With multiple relevant advantages for a wide range of UK businesses that collect Bacs payments, a Bacs bureau can help you with:
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Cost reductions
If your business takes a small or medium amount of Direct Debit payments per month, via a small or less experienced finance team, then a Bacs bureau is ideal. Also, if you handle a very high number of direct debits, costs tend to reduce volumetrically. Typically a cost-effective option for organisations that offer Bacs payment options, working with a Bacs approved bureau creates financial consistency.
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Time savings
Outsourcing of Bacs payment processing reduces the administrative burden on your internal teams, enabling them to focus on other business priorities. There is also saved time due to payment collections increasing in accuracy through automation, reducing the potential for errors throughout the process, having an expert action your AUDDIS reports and provide consistent reporting.
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Workflow efficiency
While payment processing is completed safely and securely by your Bacs bureau partner, your internal teams can prioritise goal achievement and access opportunities for growth. A typical Bureau would operate by allowing you to submit payment files from your internal accounting software/CRM and then allowing experts to take care of the reporting, processing and accountability.
When should your business use a Bacs bureau?
There’s no specific or defined time to start working with a Bacs bureau, rather it’s dependent on your individual circumstances.
If your organisation is experiencing some of the following, then it could be a good time to explore a Bacs bureau partnership:
- Smaller or newly established businesses that have a SUN may not be trained in the robust Bacs criteria for making direct submissions, whereas a Bacs bureau is experienced in this area.
- Enterprises with small to medium-sized transaction volumes may not find the cost of essential processing software viable, which a Bacs bureau would naturally already have in-house.
- A restricted amount of administrative resources or internal expertise in payment collection may make it more beneficial to work with a Bacs payment specialist.
- A Bacs bureau can rapidly and securely set up payment collections in line with regulatory requirements and Bacs rules without impacting your daily operations.
- As your business grows, so can the options available with a Bacs bureau. They should have the ability to scale Direct Debit processing when you’re ready to Direct Submission via your SUN. Only a small number of UK suppliers can do this such as Interbacs
Get the support you need with Interbacs Bacs bureau
Interbacs offers market-leading Bacs payment solutions. As one of the first Bacs Solution Suppliers in the UK, our customers know that we deliver first-class payment systems.
We have a range of products and services that help manage your cash flow, from our Bacs Approved Bureau to our InterPay Bacs payment software.
Browse our complete collection of Direct Debit solutions and find the perfect product to better support your business and your customers.
We’re always here to help, so get in contact with our friendly team of experts to discuss your payment options in more detail.
