Bacs

Definition

Bacs is the UK system for bulk electronic payments — direct debits and direct credits — that clear over a three-working-day cycle. It is the low-cost workhorse for regular, scheduled payments like wages, supplier runs and direct-debit collections.

In plain terms

Because it settles over three days, Bacs is cheap and suited to predictable, batched payments rather than urgent ones. Payroll and direct-debit collections typically run on Bacs, so you plan around its clearing cycle.

Why it matters

Knowing the three-day Bacs cycle matters for timing wages and collections in your forecast. See direct debit and Faster Payments.