Quick guide to the basics of Bacs, CHAPS and Faster Payments.
What is Bacs Payment?
Bacs stands for Banker Automated Clearing Service. Bacs is an electronic payment method that enables the transfer of money from one bank account to another. Payments are usually received within 3 days. Bacs transfers can be done with a debit or credit account.
How long does Bacs transfer take to complete?
Bacs works on a 3 day cycle to complete. Day one sees payments submitted to Bacs, on day two the transfer is processed by the bank and the money is taken out of the sender’s account. Lastly on day three the payment is credited to the recipient. Be aware that Bacs may take longer to clear if the payment is sent over the weekend as the system is setup to process Monday – Friday. Payments usually are transferred to the recipient between 1am – 7am.
What is the difference between Bacs and a bank transfer?
Bacs is a type of bank transfer. The three types of bank transfers are Bacs, CHAPS and Faster Payments.
What is CHAPS?
CHAPS allows you to make same day payments to UK accounts. Payment is guaranteed to arrive the same day as long as you have set up the payment with the branch by 5pm. There is a charge for CHAPS transfers which is usually around £25.
What is Faster Payments?
Faster Payments are much quicker than Bacs. It allows you to transfer money in seconds. This is the most common way people send money however for business Bacs remains the most popular option.
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