Payment by BACS

Making payments to your employees by BACS

What is BACS?

BACS stands for 'Banker's Automated Credit Service' and is an easy way to make payments directly from your bank account to another without the need for cheques etc. It is becoming the most popular way for employees to be paid. A new system, called BACStel-IP, was introduced in Dec 2005 and is now the only way to make direct electronic BACS payments. It provides a much more accurate and secure method of making the payments as it is all done electronically as opposed to faxing and re-keying information.

How we process your BACS payments

Once we have calculated how much each employee is due to be paid we electronically send a file with all the details to the BACS processing centre. On the selected day of payment the amounts are then transferred from your account to those of your employees.

What do you have to do?

If you already have a compatible BACS facility with your bank then you only have to transfer the authority over to our bureau so we can make the payments.

If you don't yet have a BACS facility we will send you a short form to fill in and send to your bank. This will apply for the facility and automatically authorise our BACS bureau to make payments to your employees.

The advantages

There are a number of advantages, it is the easiest way to pay your employees as you don't have to go to the bank for cash or write out the cheques.

It aids your cash flow forecast as you know exactly when the funds are leaving your account. Also your money is not in limbo for three or four days losing you interest and benefiting the bank as the money is transferred out of your account on the day it is paid into your employees account.

Charges

We are charged a yearly licence fee per company for the BACS software we use; we pass this on to you, we are also charged a transaction fee per employee payment; we pass this on to you plus a small administration fee. Our current charges for BACS payments are included in our online quote system.

The bank charges are usually considerably less for BACS than for individual cheque's as only one payment is made. Any setup and other charges are usually negotiable with most banks.