BACS Services

Approved and Fully Audited Payroll Services

BACS Services

Pay Check is a BACS approved bureau, which means that we have been audited to the highest standards to be authorised as an Indirect Submitter to send BACS payments on behalf of our clients.

We send a file that has been approved by the client through the BACS system, which triggers payments directly from a company bank account to the receiver, taking away the burden of sending individual payments internally.

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We can send BACS payments to

Employees

HMRC

Other third parties such as Childcare Voucher providers

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What is a BACS approved bureau?

A BACS Approved Bureau is a payroll bureau inspected and accepted into the BACS system. BACS inspectors conduct regular audits to ensure compliance with their standards. These inspections verify the appropriateness of payroll bureaux and assess their adherence to BACS schemes. Approved bureaux have the authorisation to submit payment instructions on behalf of clients. This ensures that payment processes and security measures meet the strict requirements set by BACS.

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What is a BACS payment?

A BACS payment is an electronic payment made directly from one bank account to another. There are two main types of BACS payment. Direct Credit, which is a bank transfer, and Direct Debit, where one party automatically takes payment from another party's account with their authorisation. Insights about this two different BACS payments are available at the bottom of the page.

BACS services are operated and managed by:
‍BACS Payment Schemes Limited

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What are the benefits of choosing a BACS approved payroll bureau?

Most organisations benefit from paying salaries or wages by BACS Direct Credit - in fact almost 90% of the UK workforce is paid in such way.

BACS direct credit can help you to:

  • Save time and cut administration costs:  With BACS Direct Credit the creation and authorisation of a payment file is a simple and inexpensive process.

  • Improve cash-flow management: Make your money work for you up to the last minute by knowing exactly when funds will leave your account.

  • Cut down on reconciliation: Generating just a single debit from your account on a specified date, will eliminate the need to track individual payments.

‍According to BACS, this is the cheapest and most standardized way to make payments.

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What are the benefits of being paid BACS?

Cleared funds: Payments by BACS Direct Credit arrive instantly as cleared funds. Your money can be used straightaway and earn interest earlier too.

‍Saves time and effort: With BACS Direct Credit payments you can be assured the money will be paid straight into your account, no matter what.

‍More secure: BACS Direct Credit payments cannot be lost, stolen or delayed in the post. Your money arrives automatically into your account on the day it is expected.

‍More reliable: Organisations using BACS Direct Credit typically pay earlier than those who don't. They also tend not to forget to make payments.

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Client Account Service

Pay Check also offers an anti-money laundering regulated Client Account for those clients that cannot obtain a BACS number with a UK bank, either because they are an international business or may not have a high enough turnover to qualify. The purpose of the Client Account service is to enable you to reduce your payment administration, by sending us a single, convenient, transfer of funds, which we can then BACS out to your employees, HMRC and other third parties.

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BACS FAQ's

How do we make a BACS payment?

BACS Direct Credit:
Your bank allows us to credit another account using either your personal or your business banking service. We'll need the name of the payee, the name of their bank, the payee's bank account number and sort code. We will need the same details for the account to be debited.

Direct Debit:
If your business wants to collect Direct Debit payments there are three methods you can choose from:

  1. You can use the BACS approved Bacstel-IP software to set-up direct access via a bank.

  2. You can use a BACS approved bureau.

  3. You can use a third-party provider, such as GoCardless.

Is it safe to make payments using BACS?

BACS is an incredibly safe way to collect and make payments. It is renowned around for the secure delivery of electronic payments:

  1. BACS has been responsible for the clearing and settlement of automated payments in the UK since 1968.

  2. It has been used to make more than 130 billion transactions. According to recent research, has never misplaced a payment.

  3. BACS uses Bacstel-IP, a system protected by SSL encryption. It also requires a secure, encrypted password, and the system is constantly monitored to validate data and user authorisation.

  4. With Direct Debit, only approved organisations are allowed to collect Direct Debit payments and the Direct Debit Guarantee protects customers against any payments made fraudulently.

How can I be paid by BACS direct credit?

BACS Direct Credit payments are easy to arrange. Simply contact us to check that they are able to initiate direct payments and supply us with the following information:

  • The name(s) on the payment service provider  account

  • Your payment service provider  account number

  • The branch sort code of your payment service provider

Payments are processed only using these numbers therefore it is vital that you double check that the account number and sort code you are giving to us are correct.

Payment reference information
It is important that the correct payment reference information is included with all electronic payments as Pay Check use this information to connect the payments we receive to their customers' accounts. Payment reference information can normally be found on the payment details of a bill.

How long does a BACS payment take to process?

Both BACS Direct Credit and Direct Debit payments work on a three day cycle, taking three working days to clear. We submit your payments to BACS on the first day, processed by the banks on the second day, and simultaneously taken from the sender account and credited to the recipient account on the third day.

With the Faster Payments Service, on the other hand, payments typically take fewer than 2 hours.

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What Is The Difference Between Direct Credit And Debit?

When you choose Pay Check as your BACS Approved Payroll Bureau, we can make payments directly from your account to the employees accounts along with your PAYE payments and any third party payments such as pensions.

Direct debits are used for pay utilities, credit cards and other day-to-day expenses. We accept Direct debits as a safe and convenient way to process payments.

Direct credits on the other hand are less well known. Made via the BACS system, direct credits allow employers to send money to their employees, HMRC and other third parties to pay their dues.

Direct Debit

When you want to take payments then Direct Debit may be the best option for you. It's a simple and a cost-effective way to take recurring (and one-off) payments.

What is a Direct Debit?
A Direct Debit is an instruction from you to your bank authorising an organisation to collect payments from your account as long as you will give advance notice of the payment amounts and dates. You can give this authorisation by completing a Direct Debit Mandate form - this can be a paper form or a web page that you complete online. Once authorised, the organisation can automatically take payments from your bank account.

Direct Debit is the safest way of making payments in the UK as the Direct Debit Guarantee means that customers are protected from fraudulent payments.

What is Direct Debit used for?
Direct Debit is typically used for taking regular or recurring payments like household bills, subscriptions, memberships or charitable donations.

Direct Debit is a popular payment option in the UK. 90% of the UK population pay at least one regular bill by Direct Debit.

BACS Direct Credit

BACS Direct Credit is a secure service enabling organisations to make payments directly into another bank or building society account.

‍What is a BACS Direct Credit used for?
‍BACS Direct Credit is one of the most popular ways for UK businesses to make payments. There are about 2.1 billion BACS Direct Credit payments made in the UK each year. It's typically used for making regular payments such as salaries, pensions, state benefits and tax credits.

‍What are the Advantages of Direct Credit?

  1. BACS Direct Credit is a much easier payment method to administer, with much of the process, including remittance and reconciliation, process by automation.

  2. Improve cash-flow. By using BACS Direct Credit to process regular payments, you get a greater control and oversight of money leaving your business. This makes it easier to accurately plan and forecast.

  3. Enhanced privacy with bank statements showing only consolidated amounts rather than individual employee payments.