Bacs Payments

[Coldicote]

I had some work done at home recently and in the event paid by cheque. The accounts I received made provision for BACs payments but I’ve never used that system and wouldn’t know where to start. Not surprisingly there are hundreds of references on the internet to BACs and also to something called CHAPs. Where does one start – with an online bank account or what? This sounds like an established method of payment but what sort of experience do readers have?

[The Builder]

I wouldn't worry about the acronyms Colders. Some aren't even used anymore. They all do much the same thing - transfer money from one person's account to another's.

As cheques go will out of use, eventually, it'll become the norm. I usually include my payment details on invoices I issue. I don't have to mess around with posting cheques off then.

Check your bank's website for details on how to set up online access to your account(s).
Once set up, you simply enter the details of a new "recipient". Then you make the transfer.

Details are simply........ account name; bank sort code; and account number.

[Coldicote]

Thank you Builder. You make it sound easy, though it's a bit daunting to a 'newcomer'. If I get another account with BACs information I'll probably give it a try. You say that cheques will go out of use eventually which sounds as though everyone will have to use a computer.

[Buenchico]

The Payments Council announced back in 2009 that cheques would cease to be a valid method of payment in 2018. However there was a great deal of concern that adequate alternative methods of payment don't exist (and would be unlikely to exist by 2018). So, in 2011, the decision was reversed.

The Payments Council has set up this website to explain about the different ways that money can be transferred:
http://www.payyourway.org.uk/

[Coldicote]

Thank you Buenchico. That's very informative.

[boxtops]

You can go into your bank with a payment slip, too, and make the payment direct from your account if you feel more comfortable doing it that way - but I too was very hesitant about on-line banking until I got used to it.

My bank has a web page for making payments to third parties, with sections where you enter the recipient's bank account number and sort code, and any reference number relating to the transaction (e.g. invoice number). I pay nearly all my bills that way now.

[Coldicote]

Thanks Boxtops. Your comments are helpful.