Glossary

A handy guide to payments industry jargon.

Bacs

Payments industry body which operates automated payments schemes in the UK, such as Direct Debit and Bacs Direct Credit.

Bacs Approved Software Supplier

A software company which has a product approved by Bacs for payment processing via the Bacstel-IP network. Such software is used by organisations to automate processing of Direct Debits, Bacs Direct Credits and so on.

Bacs Direct Credit

Banking instruction used to credit accounts via the Bacstel-IP network. Examples are salary payments and supplier payments.

Bacstel-IP

Internet based system allowing users to collect Direct Debits, process Bacs Direct Credits and monitor payments.

Direct Debit

Banking instruction used by organisations to collect payments directly from customer accounts on a regular basis. Direct Debits differ from Standing Orders chiefly in that the Direct Debit amount may vary, whereas a Standing Order is for a fixed amount. Examples of Direct Debits use are mortgage payments and utility bills.

Faster Payments

UK payments system allowing electronic payments to be processed in hours, as opposed to the standard Bacs three day service.

IBAN

International Bank Account Number. Standard used for international payment processing. The IBAN is derived from the domestic bank details, the account holding bank and country. Often used in conjunction with SWIFT Bank Identifier Code.

Industry Sorting Code Directory (ISCD)

Data file published each week, containing reference data supplied by UK banks. The ISCD is the definitive reference of UK bank branches and includes important clearing information for each branch.

Originator (Direct Debit)

Organisation authorised to collect Direct Debits via the Bacs network.

Payments Council

Organisation of financial institutions, responsible for setting UK payments strategy.

RTI

Real Time Information. HMRC project to reconcile tax data against payments made to individuals via PAYE.

SEPA

Single Euro Payments Area. Initiative to simplify cross border payments in Europe.

SHA-2

Secure Hash Algorithm 2. New, hightly sophisticated internet security protocol. Will soon be required to access Bacs payments processing, and is supported by BankPay-WS.

SWIFT

Society for Worldwide Interbank Financial Telecommunication. Worlwide financial messaging network for banks and other financial organisations.

Sort Code Validation Accreditation Scheme

Scheme operated by the Payments Council to set standards for sort code validation products and services.

UKPA

UK Payments Administration Ltd. Previously known as Association for Payment Clearing Services (APACS)Trade body of UK payments organisations (banks, building societies, card issuers etc).

VocaLink

VocaLink Limited operates the UK's automated payments infrastructure on behalf of Bacs.

Free Trial
Try our Direct Debit
Software
Free Trial

Our customers