Bacs Direct Debit

Bacs is the UK's Direct Debit scheme.


Payment type Direct Debit
Description Automated Direct Debit payments provide an essential service for both consumers and organisations. Bacs is the governing body which oversees Direct Debit in the UK. Businesses can access the Bacs scheme directly through their bank, or via a third party provider like GoCardless. For more information, see our Direct Debit user guide.
Currency £ (Pound Sterling)
Key markets United Kingdom
Key fact 74% of all recurring payments by volume in the UK are made by Direct Debit via Bacs.
Payment use case Recurring transactions, subscriptions, invoicing and instalments (for fixed or variable amounts). For example, online subscriptions, energy and telecom bills, gym memberships, charity donations.
Benefits
  • Significant reduction in involuntary churn - failure rates with Direct Debit are as low as 0.5%.
  • Lower transaction costs compared to cards (1% or less, compared to around 3%).
Considerations Not real-time - 4 to 6 day turnaround on payments, depending on whether it is the first payment for a particular customer or a subsequent payment.
Example merchants Sage, SurveyMonkey, Facebook
Additional facts + figures

‹ View table of contents Next page ›

Latest features

Your top cash flow questions answered

We took a look around the internet to find the most-asked questions about cash flow. Here are the answers.

5 steps for a successful transition from invoicing to subscription billing

If you bill your regular customers on a recurring basis, take advantage of subscription billing and bring more predictable revenue to your business. In this guide, we walk through 5 steps to moving to a subscription model.

The small business guide to purchase orders

When your business buys goods or services, it’s important to keep track of what you’ve ordered and how much it will cost you. Setting up a purchase order system can improve your business’ efficiency, tighten stock controls and save you money.

View all


Reference guides

View all