Bacs, the UK’s direct credit and direct debit
payments processor, reached a major milestone in April when it
celebrated 40 years of service which reflect the massive advance
made by electronic payments during the period. A non-profit company
owned by 13 banks and building societies, Bacs was originally the
acronym for the Bankers’ Automated Clearing Services.
payments processor, reached a major milestone in April when it
celebrated 40 years of service which reflect the massive advance
made by electronic payments during the period. A non-profit company
owned by 13 banks and building societies, Bacs was originally the
acronym for the Bankers’ Automated Clearing Services.
From humble beginnings in 1958 when Bacs
processed a total of 9 million transactions, volumes have soared to
reach 5.5 billion in 2007 – the equivalent of 90 payments for every
man, woman and child in the UK. In total Bacs has processed 68
billion transactions in its 40 year history with a record of 90.3
million items processed in a single day in November 2007. The total
value of transactions processed by Bacs in 2007 was £3.7 trillion
($7.2 trillion).
processed a total of 9 million transactions, volumes have soared to
reach 5.5 billion in 2007 – the equivalent of 90 payments for every
man, woman and child in the UK. In total Bacs has processed 68
billion transactions in its 40 year history with a record of 90.3
million items processed in a single day in November 2007. The total
value of transactions processed by Bacs in 2007 was £3.7 trillion
($7.2 trillion).
In volume terms direct debits are the dominant
component of Bacs’ volume and accounted for about 3 billion
transactions in 2007. In 1998 the annual direct debit volume was
just over 1.7 billion and in 1988 585 million. Three quarters of UK
adults now have at least one monthly direct debit commitment and
115,000 businesses use Bacs services. By 2015 Bacs predicts that
its annual direct debit volumes will reach 14.5 billion.
component of Bacs’ volume and accounted for about 3 billion
transactions in 2007. In 1998 the annual direct debit volume was
just over 1.7 billion and in 1988 585 million. Three quarters of UK
adults now have at least one monthly direct debit commitment and
115,000 businesses use Bacs services. By 2015 Bacs predicts that
its annual direct debit volumes will reach 14.5 billion.
Direct credits have also played a key role in
driving Bacs’ volumes. Today 90 percent of the UK’s workforce is
paid via direct credit with weekly wage payments totalling 4
million and monthly salary payments totalling 25 million.
driving Bacs’ volumes. Today 90 percent of the UK’s workforce is
paid via direct credit with weekly wage payments totalling 4
million and monthly salary payments totalling 25 million.
Bacs’ 40 year history also reflects the
considerable advance of technology. In the early years magnetic
tapes were used to store data and couriered to Bacs for processing
on mainframe computers. In 1983 Bacs introduced data feed via
telecommunication links, a method that became the standard
procedure in 1999. In 2006 these links were replaced by an
internet-based solution, Bacstel-IP.
considerable advance of technology. In the early years magnetic
tapes were used to store data and couriered to Bacs for processing
on mainframe computers. In 1983 Bacs introduced data feed via
telecommunication links, a method that became the standard
procedure in 1999. In 2006 these links were replaced by an
internet-based solution, Bacstel-IP.
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