How long do BACS payments take
Payment by Bacs, both Direct Credit and Direct Debit payments, is a fast and practical option for businesses wishing to send and receive payments quickly and efficiently taking just three working days to clear.
The process begins with the payment being submitted to the Bacs system on the first day
– the Input Day.
The second day is dedicated to the transaction being processed by the bank. Transactions are processed and batched up ready to be sent overnight to individual banks.
The third day is the key entry day with payments being simultaneously taken from the senders account and credited to the recipient. Transactions are referred to as simultaneous as the funds don’t leave your bank and the beneficiaries’ bank does not receive the funds until the third day.
Bacs payment transfer days are business days with ‘non processing days’ classed as weekends or Bank Holidays. For example, if the first day falls on a Friday the payment cycle will complete on Tuesday. Its important that businesses schedule payments to take these non-processing days into account, particularly bank holidays.
It’s also worth noting that Bacs payment files can be submitted up to 30 days in advance and a handy processing calendar outlining all the key payments dates throughout 2020, can be found here.