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

Member Retention Bootcamp: e-Guide for fitness business leaders

6 business workouts to stretch your average membership duration and build member loyalty.

5 ways Finance & Ops teams can improve gym member retention

What can Finance and Ops leaders do to keep members coming back? More than you might think. 5 tactics to boost member retention at your gym.

Switching Direct Debit provider - A guide for gym owners

Transferring your Direct Debit mandates from one provider to another is easy using the bulk change process. This involves changing from your current Service User Number (SUN), or existing provider to a new one, either your own or one held by a new provider.

View all


Reference guides

View all