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Bacs vs CHAPS

Perhaps two of the most popular bank-to-bank payment transfer methods – Bacs and CHAPS – offer businesses a secure, reliable and efficient way of transferring funds electronically. Depending on the amount of money you want to transfer and the time in which you need it to be cleared, however, one particular method will inevitably be preferable over the other. So what’s the difference between the two?

Bacs Payments Bacs is perhaps the biggest and most widely used payment processing system by businesses in the UK, with a record £6.5 billion worth of transactions processed in 2019.

Bacs, now part of Pay.UK, is responsible for all of the Direct Debit and Bacs Direct Credit transactions that are made, with transfers enabled directly from bank account to bank account. It has an upper limit of £250,000 per transfer, with transfers considered incredibly affordable for the end-user.

Over 150,000 organisations use Bacs Direct Credit and whilst it is mainly known for wages and salary payments it can also be used for a wide range of other applications such as pensions, employee expenses, insurance settlements, dividends and refunds. Its popularity is down to the fact that scheduling regular payments is easy and the vast majority of payroll software systems are compatible with Bacs platform.

One possible limitation of Bacs is the time it takes to process the transactions. Payments clear in three days – meaning that some regular payments will need to be planned for in advance and adjustments made to account for ‘non-processing’ days such as Bank Holidays.

CHAPS Payments CHAPS, or the Clearing House Automated Payment System, on the other hand, is a same-day bank-to-bank transfer system for high-value or time-critical transactions.

If Bacs is primarily used for the ease of regular transfers and for the low cost of transactions, CHAPS is typically usually used for bigger, one-off payments. This is because transactions are relatively expensive, costing between £25 and £35 each, depending on the bank.

There is no upper limit to the value of a CHAPS payment, which often makes it the system of choice for financial institutions or large companies making one-off payments and where Bacs payments take three days to clear, CHAPS transactions take only a matter of hours – and the payment should be received on the day it’s made.

Still unsure which is right for you? Let Eazipay help you find your Direct Debit solution by talking to one of our sales team now – call 01353 864949 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

★★★★★

James Simpson
SkinViva Ltd
Wonderful company. They offer a very efficient service with a quick turnaround time between Direct Debits being processed and the funds being transferred to your business. They provide good reporting that has helped our business gain a better understanding of our own clients. We've been with Eazipay for several years and all throughout that time we have received great customer service that has a very personal feel to it. It can often feel like you're their only customer!

★★★★★

Michelle
John Cashin Tuition
We have been using Eazipay for our private tuition business for approximately seven years and we couldn't be more impressed. Deciding to use Eazipay has been one of the best decisions we have made. It is so much easier for me now that I do not have to chase customers for payment, it's all done for us - like clockwork. The staff are so helpful, courteous, friendly and super efficient. A very professional service indeed. For me Eazipay are worth their weight in gold!

★★★★★

Mark Ward
Midland Tech
Midland Tech have been using Eazipay for nearly four years and the service has been excellent. It's easy to use, payments are received promptly, and customer service is very good. Emails are answered quickly, nothing is too much trouble, and everyone you deal with is very knowledgeable and friendly I would recommend Eazipay to anyone.

★★★★★

Oliver Thompson
CCCit
We have been using Eazipay to take direct debit payments from our clients since 2008. As a long standing customer our business could just not run without the assurance that we are going to get paid on time. Eazipay has allowed us to grow our business without the hassles involved in collected numerous monthly payments. We really appreciate all the hard work and expertise that the team at Eazipay bring to our business. Thank you from everyone at CCCit

★★★★★

Andrew Straton
Yorkshire Dales Sailing Club
Eazipay have been collecting Direct Debits on behalf of the Yorkshire Dales Sailing Club since 2009 and we have never looked back! It has made our administration, run entirely by volunteers, so much easier and saved us large amounts of cash by not having to post reminders to members every year. Thank you EAZIPAY, you do a great job and I would (and have) recommend you highly to anyone thinking of using a Direct Debit system in the future.

★★★★★

Emma Statham
We have been using the services that Eazipay Ltd offer for some years now and cannot recommend them highly enough. in a nutshell, they offer an incredibly professional, personal , and faultless service allowing us to collect direct debit payments from some of our customers, hassle free. Natalie Terris is our account manager, and she is helpful, friendly and knowledgable. All our queries are dealt with simply and swiftly. All the Eazipay processes we use are simple to use. We wouldn't go anywhere else- Thanks Eazipay! x

★★★★★

121 IT Services Ltd
We started working with Eazipay in September 2013 and since that time they have made both our clients and 121 IT's life so much simpler. The staff are great, friendly and very good at what they do. Would totally recommend them, thank you.

★★★★★

Mark Wyatt
Telecom Network Services
Telecom Network Services has been a customer of Eazipay for 14 years, since I started the business. The staff at Eazipay are outstanding, always efficient and process payments accurately and on time everytime! I recommend Eazipay Ltd, they are a great company to do business with.

★★★★★

Steven Bourne
We have been a client of Eazipay for over two years now and the service is excellent. There is always someone available on the end of the telephone to deal with any queries and it is a very professional set up. The way in which the system operates is very straightforward and we save hours of time and hassle compared with using the old method of standing orders. I would thoroughly recommend Eazipay to any business which wants to make collecting money easy!

★★★★★

Emma Martineau
Phones 4 Business started collecting payments by Direct Debit in 2007. We chose Eazipay and have never looked back. I daren't calculate how much time I have saved in using Eazipay and staying with them is a no brainer! Why change when I have such a good supplier? It is service that counts; Natalie Terriss and the whole team are always very friendly, efficient and reliable. I have no hesitation in recommending them.

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