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When it comes to payroll management and paying your people in the UK, there are a few options to choose from: BACS and Faster Payments are two of the most popular ones.
Whether you’re at a large corporation navigating high-volume payments or a startup looking for flexibility and better cashflow, we’ll break down the key differences between the two systems—including their features, use cases, and benefits—so you can make an informed decision.
What are BACS payments?
BACS stands for Bankers Automated Clearing Services.
A BACS payment is simply a digital method banks use to move money between different bank accounts.
This system is used for all sorts of transactions, including payroll processing, direct debits, and creditor payments.
A regulatory body called Bacs Payment Schemes Limited—a regulatory body responsible for streamlining financial operations like payroll processing, direct debits, and creditor payments—oversees BACS.
What are Faster Payments?
As the name suggests, Faster Payments is a speedier alternative to BACS.
Faster Payments allow you to send money from one bank account to another in just a few seconds, whereas BACS payments take up to three working days.
When you use Faster Payments, you don’t have to wait for hours or days for the
