BACS
Bankers’ Automated Clearing Services, the process for making sterling payments via domestic UK banks. Mostly used for direct credits and direct debits, BACS payments tend to take three business days to clear.
Related terms
CHAPS
Clearing House Automated Payment System, a faster way of making sterling payments that are usually cleared on the same working day.
Read full definitionFaster Payments
A UK system for faster payment of amounts up to £10,000 (lower for some banks), with funds usually credited within minutes.
Read full definitionACH (Automated Clearing House)
A network used for electronic payments and money transfers. ACH is popular in the United States for domestic transactions, including direct deposit, payroll and bill payments.
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BIC (Bank Identifier Code)
Also known as a SWIFT code, a standard format used to identify a specific bank during an international transaction.
Read full definitionCash Transfer
The movement of funds from one entity to another. When moving cash from one country to another, the term is often used interchangeably with currency transfer, foreign exchange and currency conversion.
Read full definitionClearing House
An organisation, institution or third party that settles a financial obligation between a buyer and seller, ensuring all parties honour and settle the agreements they have committed to.
Read full definitionCross-Border Payment
A transaction involving a money transfer between two entities in different countries. These payments typically involve currency conversion and are subject to foreign exchange regulations.
Read full definitionCurrency Conversion Fee
A fee charged for converting one currency to another, commonly encountered in international transactions and a significant consideration in foreign exchange services.
Read full definitionCurrency Transfer
The process of moving funds from one location, and therefore one currency, to another.
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