Introduction to Direct Credits

Direct Credit definition

A straightforward Bacs Direct Credit definition is that it is a system that enables businesses, large and small, to make payments by electronic transfer directly into bank or building society accounts. It’s simple, secure, and reliable, and it reduces the time and costs associated with traditional methods of payment processing.

Bacs Direct Credit is increasingly used by businesses operating in a range of sectors for all types of business payments. Most commonly it is used for paying salaries to employees and regular payments to suppliers. There are, however, a wide variety of other applications where Bacs Direct Credit is the most cost-effective solution. These could include pensions, employee expenses, insurance settlements, dividends, and refunds.


The difference between Direct Debit and Direct Credit

The difference between Direct Debit and Direct Credit for businesses is simply the difference between requesting payments from people who owe you (Direct Debit) and making payments to people you owe (Direct Credit). If you want to know more, get in touch to see how we can help.

Box Image About Bacs & the NPSO

About Bacs & the NPSO

On 1 May 2018 Bacs Payments Schemes Ltd – known as “Bacs” – became a wholly-owned subsidiary of the NPSO.

Learn more about both organisations by clicking below.


Bacs & NPSO - More Information

The Benefits of Direct Credit

Box Icon Simple


You can submit all transactions in one file

Box Icon You retain control

You retain control

You decide when funds will leave your account

Box Icon Flexible


Can be used for regular and off-one payments

Box Icon Cheaper than cheques

Cheaper than cheques

Eliminates the costs of cheques, stationery and postage

Box Icon Safer than cash

Safer than cash

No need to store currency onsite

Box Icon Cut down on reconciliation

Cut down on reconciliation

A single debit from your account so no individual payments to track

Box Icon Advance Submission

Advance Submission

Submit payments up to 30 days in advance

Box Icon Possibility to Recall Errors

Possibility to Recall Errors

Window to recall payments if needed (with bank approval)

Important Direct Credit Terms

The following are common terms within the area of Direct Credits.  Understanding these terms will help you better understand the Scheme itself.

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