Bacs payment is a bank-to-bank transfer between banks in the UK. It is a membership organization consisting of 16 of the UKs leading banks. Bacs stands for Bankers Automated Clearing Services. There are two main types of Bacs payment: Direct Debit and Direct Credit. Direct Debit is when one party has been given permission to pull money from the bank account of another party, while Direct Credit is when a party deposits the money in the other partys account. Bacs payments are not same-day payments or instant, but they are still the number one bank payment method businesses use. The payments take three business days to clear. Bacs payment is one of the cheapest ways to collect payments. Bacs Direct Credit is a much easier payment method to administer, with much of the process, including remittance and reconciliation, benefitting from automation. Bacs is an incredibly safe way to collect and make payments and is renowned around the world for the secure delivery of electronic payments.