Frequently Asked Questions

Bacs approved software is payment / collections software that has been formally approved by Bacs to submit Direct Debit and Bacs Credit transactions into the UK Bacs payment scheme. Approval confirms the software meets strict standards for security, data integrity, processing accuracy, and operational resilience.

Bacs approved software supports:

• Direct Debit collections (including AUDDIS and paperless Direct Debit)
• Bacs Credit payments (such as payroll, supplier payments, pensions, and refunds)

Yes. To submit Direct Debit instructions or collections directly to Bacs, you must use Bacs approved software.

A Service User Number (SUN) is a 6-digit unique identifier issued by a sponsoring bank that allows your organisation to submit payments / collections to Bacs.

Yes. Bacs approved software must meet strict security standards, including:

• Encrypted data transmission
• Secure user authentication
• Full audit trails
• Role-based access controls

These standards help protect against fraud, data breaches, and unauthorised payment submissions.

Yes, modern Bacs approved platforms are designed to integrate with:

• ERP systems (e.g. Sage, NetSuite, Microsoft Dynamics)
• CRMs
• Billing platforms
• Payroll systems

This allows automated file creation, payment submission, reconciliation, and reporting — significantly reducing manual processing.

The API supports a wide range of use cases, including:

• Creating and managing Direct Debit mandates
• Submitting Bacs payment instructions
• Retrieving payment statuses and reports
• Managing customer records
• Automating reconciliation and exception handling
• Triggering workflows from ERP, CRM, or billing platforms

This allows finance teams to embed Bacs processing directly into their operational workflows.

Yes. SmarterPay supports online Direct Debit sign-up pages that allow customers to set up a Direct Debit securely and compliantly.

These pages can be:

• Hosted by SmarterPay
• Embedded into your website or customer portal
• Integrated with your backend systems via API

They provide a smooth customer experience while ensuring compliance with Bacs rules.

Yes. Sign-up journeys can be customised to:

• Match your branding
• Capture additional customer data
• Integrate with your CRM or billing system
• Trigger automated workflows after sign-up

This is particularly useful for subscription services, utilities, charities, and membership organisations.

Yes. Automated API-driven processes can still be combined with:

• Dual or multi-level approvals
• Segregation of duties
• User permission controls

This ensures automation does not compromise governance or compliance.

Bacs payments follow a three-day processing cycle:

• Day 1 – Payment file submitted
• Day 2 – Processing by banks
• Day 3 – Funds are credited or debited

Bacs approved software helps manage cut-off times, validation, and submission accuracy.

Yes. Bacs approved software includes controls that help reduce fraud risk, such as:

• Dual authorisation
• Segregation of duties
• Payment limits
• Full audit logs
• Automated validation checks

These controls are particularly important for organisations handling high-value or high-volume payments.

Absolutely. Bacs approved software is widely used by:

• Enterprises
• Local authorities
• Utilities
• Charities
• NHS and public sector bodies

It scales easily to support high transaction volumes, multiple users, and complex approval workflows.

Yes. Bacs approved software is commonly used by:

• Charities collecting regular donations
• Councils processing housing benefits and supplier payments

NHS bodies managing payroll and reimbursements

SmarterPay provides:

• Fully Bacs approved software
• Direct Debit and Bacs Credit processing
• Integration with any ERP or CRM
• Advanced automation and fraud controls
• Flexible, workflow-based pricing
• UK-based onboarding and support