Indirect PSPs can submit payment files to BACS directly via the electronic connection called “Bacstel-IP”. BACS payments have a three working days cycle: they are entered into the system on the first day, processed on the second day, and are debited and credited on the third day.
'Bank Grade’ status is a BACS facility that enables a Service User to submit specific transaction types that are appropriate to a PSP where there is a business need. The use of Bank Grade status is recommended for customer originated payments, as it allows the remitting sort code and account number of each transaction to be shown, thus enabling compliance with EU Directives on Money Laundering. We will consider providing Bank Grade status to indirect PSPs with BACS enabled sort codes.
Under BACS scheme sponsorship rules only indirect PSPs who are Credit Institutions are permitted to sub-sponsor their own customers, authorise a bureaux or use the Current Account Switching service.
BACS A Services enables a sponsored indirect PSP to submit Payment Returns and Messaging advices to other BACS Service Users. It offers a choice of submission methods:
Manually to a screen based solution via BACS’ Payment Services website; or
By a file based solution (compiling a batch of messages and / or return payments in their own system and creating a file to submit directly into BACS).