Guide to BACS and paying overseas employees

Guide to BACS and paying overseas employees

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What is a BACS payment?

A BACS payment is a transfer of funds from one bank account to another. In the UK, it’s a simple process used by many companies to manage payroll. The electronic system is used for payments, Direct Debits and credit payments from suppliers. The solution helps companies make payments on time and reduces administration time with less paperwork and no chance of cheques getting lost in the post.

 

What does BACS stand for?

BACS stands for Bankers' Automated Clearing Services. The organisation is now known as Bacs Payment Schemes Limited and is responsible for schemes that support UK automated payment methods such as Direct Debit and BACS Direct Credit, including the clearing and settlement of funds. Whilst best known for payments within the UK, it is possible to use your corporate moneycorp international payments account to set up BACS payments in currency for international payroll and other costs such as paying suppliers or overseas office costs.

 

How long does a BACS payment take?

On average, BACS payments take three working days to clear in an account. For many companies, this is the ideal way to deliver payroll as payments can be set up in anticipation of a standard payment date. There are alternatives such as Faster Payments and CHAPS for more urgent payments, but for expected costs and defined deadlines, this provides a way of managing bulk payments.

 

Pay employees overseas by BACS

Whilst it is mostly associated with UK payments between bank accounts, for example, a UK company’s payroll, it is possible to use the BACS facility with your corporate moneycorp international payments account. BACS international payments work in the same way as standard BACS, which means that you can deliver payroll overseas using a similar process to your UK staff and ensure that staff are paid on time, wherever they are in the world. Currency values fluctuate which means it can be a challenge to provide the agreed salary each month but the support and guidance of an expert team can help to ensure that what lands in an employee’s account is the amount agreed.

 

BACS international payments

You can also use your BACS international payments facility for paying suppliers and covering costs such as an overseas office. It is one of the many tools available with moneycorp’s currency transfer services, which helps you streamline payment processes across the world and manage your funds across borders in a fluctuating currency market.

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