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What is a Bacs payment?

A Bacs payment is a secure electronic bank transfer used to move money between UK bank accounts.

Bacs is commonly used for salary payments, pensions, Direct Debits and Direct Credits, making it one of the most widely used payment methods in UK banking. 

Although Bacs payments aren't instant, they provide a reliable and cost-effective way to send and receive money, typically taking 3 working days to complete. You can make Bacs payments by Direct Debit and Direct Credit. 

If you pay the household bills or use a subscription service, you will have made a payment via Bacs before.

What are the 2 types of Bacs payment?

Bacs payments come in 2 types, Direct Debits and Direct Credits. Each is used for a different purpose. This table gives an overview of both:

Bacs payments compared

  Direct Debit Direct Credit
Purpose You give permission for a company or organisation to take payments from your account. A company or organisation pays money into your account.
Who uses it? Businesses and organisations collect payments from you. Employers, government and organisations send payments to you.
Common examples
  • Utility bills
  • Council tax
  • Mortgage payments
  • Subscriptions and memberships
  • Salaries
  • Pensions
  • Benefits
  • Supplier payments and refunds
Control You stay in control and can cancel a Direct Debit at any time. Payments are made to you - no action is needed.
Speed Typically takes 3 working days. Typically takes 3 working days.

Bacs payments compared

  Purpose Purpose
Direct Debit You give permission for a company or organisation to take payments from your account. You give permission for a company or organisation to take payments from your account.
Direct Credit A company or organisation pays money into your account. A company or organisation pays money into your account.
  Who uses it? Who uses it?
Direct Debit Businesses and organisations collect payments from you. Businesses and organisations collect payments from you.
Direct Credit Employers, government and organisations send payments to you. Employers, government and organisations send payments to you.
  Common examples Common examples
Direct Debit
  • Utility bills
  • Council tax
  • Mortgage payments
  • Subscriptions and memberships
  • Utility bills
  • Council tax
  • Mortgage payments
  • Subscriptions and memberships
Direct Credit
  • Salaries
  • Pensions
  • Benefits
  • Supplier payments and refunds
  • Salaries
  • Pensions
  • Benefits
  • Supplier payments and refunds
  Control Control
Direct Debit You stay in control and can cancel a Direct Debit at any time. You stay in control and can cancel a Direct Debit at any time.
Direct Credit Payments are made to you - no action is needed. Payments are made to you - no action is needed.
  Speed Speed
Direct Debit Typically takes 3 working days. Typically takes 3 working days.
Direct Credit Typically takes 3 working days. Typically takes 3 working days.

What does Bacs stand for?

Bacs originally stood for Bankers’ Automated Clearing System. Today, it refers to 1 of the UK’s main payment systems, processing billions of electronic payments every year.

It’s a regulated payment system that's now run by Bacs Payment Schemes Limited, part of Pay.UK. Bacs is used by businesses, employers and organisations to process Direct Debits and Direct Credits, including salary payments, pensions, benefits and recurring household bills. 

Because Bacs operates using a 3 working day processing cycle, it’s best suited to planned payments rather than urgent bank transfers. 

What details do you need to make a Bacs payment?

Setting up a Bacs payment by Direct Debit is usually a straightforward process. Before you begin, make sure you have the account details required by the company or organisation you're paying. Once your Direct Debit has been authorised, future payments will be collected automatically on the agreed dates.

Before you start

To ensure the Bacs payment is set up correctly, you'll need:

  • Your full name and address, to verify your identity
  • Your bank account number and sort code, to identify the account the payments will be collected from
  • The name of the company or organisation to ensure the Direct Debit is set up correctly
  • A preferred payment date to ensure any future payments can be collected

Setting up your Direct Debit

Follow these simple steps to set up a Direct Debit and make regular payments quickly and securely.

  1. Gather your details
    You’ll need your name and address, your bank’s name and address, and your account number and sort code.
  2. Fill in a Direct Debit form
    This could be online, over the phone or you may need to request a physical form from the company.
  3. Confirm your details
    Check the payment information carefully before authorising the Direct Debit.
  4. Choose your payment date
    Agree a date when payments will be taken.
  5. Your Direct Debit is active
    Future payments will be collected automatically until you cancel the instruction.

You’re in control. You can cancel or amend your Direct Debit at any time. Find out more about managing Direct Debits.

What happens next?

Once your Direct Debit has been set up:

  • You’ll usually receive confirmation from the company/organisation
  • Payments will be collected automatically on the agreed date
  • You can monitor upcoming payments using online banking or the HSBC Mobile Banking app
  • If you need to make changes or cancel your Direct Debit, you can usually do this through your bank or by contacting the company/organisation

Explore: How to set up a Direct Debit and making payments

How to get paid by Direct Credit

To get paid by Direct Credit, you’ll need to give the payer your sort code and account number.

A Direct Credit is a Bacs payment that sends money directly into your bank account. It’s commonly used for salary payments, pensions, state benefits, refunds and supplier payments.

You should receive the payment automatically once:

  • The payment is initiated and approved by the payer
  • The sending bank has processed it

What if my payment hasn’t arrived?

If a Bacs payment is not received:

  1. Check the payment date
  2. Confirm your bank details with the sender
  3. Ask whether the payment has been submitted
  4. Contact HSBC if you believe there is a problem

Explore: What bank details do employers need?

How long does a Bacs payment take?

A Bacs payment normally takes 3 working days to go through, as long as it’s sent before the cut-off time. So if a Bacs payment is sent on Friday before the cut-off time, it should arrive by Tuesday the next week.

Can Bacs payments go in at any time of day?

Bacs payments will usually go into an account between 01:00 and 07:00. This is the standard Bacs payment time, so if a payment doesn’t arrive by 07:00, it may be processed the next working day.

This article was last updated:19/10/2026, 04:15

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