Setting up a Bacs provider is one of the most important steps for businesses moving from manual bank payments to automated payroll and supplier processing.
If you’re looking to sign up for Bacs software, understand pricing, or switch providers, this guide explains exactly what’s involved — including requirements, approval timelines, and typical costs.
At paygate, we help UK businesses complete Bacs provider setup quickly and with clarity, whether you’re a first-time submitter or migrating from an existing solution.
This guide is designed for:
• Small to mid-sized businesses moving from manual bank payments
• Finance teams evaluating Bacs software pricing
• First-time Bacs submitters unfamiliar with SUN requirements
• Organisations considering switching providers
If that sounds like your situation, speaking to a paygate early can prevent delays and unexpected costs.
Bacs provider setup is the process of registering your business with a Bacs software provider so you can submit payment files through the UK Bacs network.
There are two main routes:
Direct Submit Setup
Your organisation submits payment files directly to Bacs using approved software and a Service User Number (SUN).
Bureau Setup
A third-party bureau submits payments on your behalf using their own SUN.
The right route depends on your payment volume, internal controls, and long-term growth plans. Many small and mid-sized businesses start with bureau services before moving to direct submission as they scale.
paygate supports both approaches and guides you through the most appropriate setup based on your business needs.
f you’re signing up for Bacs software for the first time, you’ll typically need:
• A UK Business Bank Account: Your bank must confirm that your account is eligible for Bacs submissions.
• A Service User Number (SUN): Required for direct submission. Your bank issues this after reviewing your application and internal controls. This process can take time, so early planning is important.
• Bacs-Approved or Compliant Software: Direct submitters must use approved software compatible with Bacstel-IP submission standards. Bureau users rely on the provider’s existing approvals.
• Security Credentials: Direct submission requires secure PKI credentials to transmit files safely through the Bacs system.
For many first-time buyers, the SUN and security process is the most unfamiliar part. paygate walks clients through each stage to prevent delays or rejected applications.
One of the most common questions is: How much does Bacs software cost per month? The answer varies: pricing will differ across different providers, but the main things to consider are:
• Submission method (bureau vs direct)
• Payment volume
• Integration requirements
• Support and onboarding level
Most providers use one or more of the following models:
• Monthly subscription fees
• Per-transaction charges
• Volume-based pricing tiers
• One-off implementation fees
For smaller organisations, bureau services often provide lower upfront costs and predictable monthly pricing. Direct submission may involve more setup but can become more cost-effective at higher volumes.
When evaluating Bacs software pricing, consider not just the headline monthly fee but also:
• Transaction costs at scale
• Integration costs
• Ongoing support
• Future scalability
paygate offers transparent pricing discussions so businesses understand both short-term and long-term costs before committing.
How long it takes to setup with a Bacs provider depends on your submission method.
Bureau Setup Timelines
Bureau onboarding can often be completed within a few days to two weeks. This depends mainly on documentation and internal approval processes.
Direct Submit Setup Timelines
Direct submission usually takes longer due to:
• SUN application and bank approval
• Security credential setup
• Software configuration
• Test payment runs
This process typically ranges from two to six weeks, depending on banking response times and how quickly documentation is completed.
If payroll continuity is critical, it’s important to plan setup around your payroll calendar to avoid disruption.
Discounts and Volume Pricing
If you process high volumes of payroll or supplier payments, you may qualify for Bacs provider discounts.
Many providers offer:
• Reduced per-transaction pricing at higher volumes
• Contract-based discounts
• Multi-year agreement incentives
• Migration discounts for businesses switching providers
At paygate, we review expected volumes during onboarding to ensure your pricing structure aligns with your growth plans.
Common Bacs Setup Mistakes to Avoid
Businesses new to Bacs often underestimate certain parts of the process. The most common issues include:
• Delaying the SUN application
• Choosing the wrong submission method
• Not confirming integration requirements early
• Failing to test payment files before going live
• Selecting software that doesn’t scale
A structured onboarding process significantly reduces these risks. This is particularly important for businesses moving payroll from manual bank uploads to automated submission.
Yes. Businesses can change Bacs software providers after setup.
Switching requires coordination to avoid disruption to payroll or supplier payments, especially if you are moving between bureau and direct submission models. Migration planning should include:
• Confirmation of SUN continuity (if applicable)
• Parallel testing before go-live
• Clear payroll cutover dates
Setting up a Bacs provider doesn’t have to be complex. With the right guidance, the process is straightforward and predictable.
paygate supports businesses through:
• Submission method selection
• SUN and approval guidance
• Secure onboarding
• Integration planning
• Go-live support
Whether you’re purchasing Bacs software for the first time or switching providers, we’ll help ensure a smooth transition.
Whether you’re just exploring or ready to switch, we’d love to hear from you.
To sign up for Bacs software, you first choose a Bacs provider and complete their onboarding process. If you plan to submit payments directly to Bacs, you’ll also need to apply for a Service User Number (SUN) through your bank. Once approved and configured, your software can begin generating and submitting compliant Bacs payment files.
Businesses using a bureau provider do not usually need their own SUN, as the bureau submits payments on their behalf.
If submitting directly, your bank must approve your application and issue a Service User Number (SUN). You’ll also need to meet security requirements, including setting up Public Key Infrastructure (PKI) credentials for secure transmission via Bacstel-IP.
If using a bureau service, the bureau handles submission approvals, and you typically do not need your own SUN.
Bacs software costs vary depending on the provider, submission method, and payment volume. Most providers charge a monthly subscription fee, often combined with per-transaction charges.
Direct submission solutions may involve higher setup costs but can offer lower per-payment costs at scale. Bureau services usually have lower upfront costs but may charge more per transaction.
It’s important to review total costs, including setup fees, support, and volume pricing.
Yes. Many Bacs providers offer volume-based pricing, where the cost per transaction decreases as payment volume increases. Some providers also offer contract-based discounts or incentives for long-term agreements.
High-volume payroll or supplier payment users should discuss expected volumes during pricing negotiations to ensure they receive the most suitable rate structure.
Setup time depends on whether you choose bureau or direct submission.
Bureau setup can often be completed within a few days to two weeks, depending on documentation and onboarding requirements.
Direct submission usually takes longer due to bank approval for a SUN, security credential setup, and testing. This process typically takes between two and six weeks.
Planning ahead is especially important if transitioning payroll.
Bureau pricing typically involves lower upfront costs and higher per-transaction fees, as the provider submits payments on your behalf.
Direct submission often involves higher setup requirements, including SUN approval and security configuration, but may offer lower per-transaction costs over time.
The most cost-effective option depends on your payment volume and long-term growth plans.
Yes, businesses can switch Bacs providers after setup. The process requires careful coordination to avoid disruption to payroll or supplier payments.
If submitting directly, your SUN can usually remain in place, though configuration changes may be required. Migration should include testing and a clear go-live date to ensure payment continuity.
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AWS ISO27001 hosted * Primary fail over and back up UK data centres | ✓ | ✓ | |
SFTP file uploads/downloads *Secure way to move files across the internet, customers can use their own certificates | ✓ | ✓ | ✓ |
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APP MFA * Works with common auth apps such as Google Authenticator, Authy. Works on Android or iOS. | ✓ | ||
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Fraud tool *Currently support Blacklists and Whitelists. In a blacklist you add various sortcodes / account numbers and the system will prevent any payment to those accounts. In a whitelist you add sortcodes and account numbers and the system will ONLY allow payments to accounts on the whitelist. We include various tools to help build and maintain the lists. | ✓ | ||
GDPR subject access request * Search tools to help perform a GDRP lookup. Then can optionally ‘sanitise’ personal data from the system. | ✓ | ✓ | ✓ |
GDPR Data cleansing *Remove historical data by bulk or individual. | ✓ | ||
Browser compatbility * We maintain support for Chrome, Edge and Firefox. | ✓ | ||
Built for performance * Version 3 runs on super modern, high-end infrastructure | ✓ | ||
Single Platform * Customers have a single user account that they can use across all services (Enterprise, Online, Validate, etc). | ✓ | ||
Agent rebuilt key management system * Very secure way to get files to and from the Paygate cloud. Supports ways to automate files being sent into the paygate cloud and retrieving reports from the cloud. Key management was rebuilt for V3 to further increase security. | ✓ | ||
HTTPS uploads/downloads * paygate v3 supports both SFTP and HTTPS. | ✓ | ||
In browser File and Folder handling * Allows customers to securely organise their files and folders that are stored on paygate | ✓ |
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Auto File Import *Automatically imports a payment file and validates it. Users no longer need to manually browse for and import a file, paygate will do this in the background and present the validation results to the user. |
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New scheduler triggers * A new trigger type that allows the user to set up a workflow like you set up a meeting in Outlook. For some, this is more flexible and easier to understand than using CRON. |
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Triggers for multiple workflows * You can use a single trigger to start multiple workflows. It’s a simple feature that will make things easier to manage if you have a lot of workflows. |
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Workflow validation * Troubleshoots new workflows, validation |
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Workflow chaining * Allows a workflow to call another workflow. Using this you can simplify large complicated workflows in smaller separate ones. Easier to manage and diagnose issues. |
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Full documentation V3 will be fully documented with help guides and tutorials.
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Multiple filename variables * Supporting multiple filename variables should make designing complex workflows a bit easier. |
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Future developments * Pure Excel Importer – XLSX; BACS Calendar Widget; Workflow Timeline; Workflow / Mobile App notification / management; S3 Connector |
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Download and distribute A Reports * When you have workflow and HSM you can automate the entire BACS report download process. They can automatically be converted to other formats for integration into finance apps. They can be emailed to customers as html, pdf or zips. They can be made available for collection via SFTP. Or, if you use Agent, they can be security delivered to the customer’s private network. |
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Lightsout submission * No signing |
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Submission Re-entry * Complete your submissions over any amount of time
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Familiar workflow throughout *It will be familiar to V2 customer but they will notice improvements. |
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Drag and drop files from anywhere *Like in other areas of V3. User can just drag and drop file in Bureau for processing. They can also use the Restricted File Browser and Server file browser – that add more security – if they wish. |
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Support for multiple file formats per submission * No longer limited to single Standard 18 submission for example
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Better default filename support *Makes working with files easier. |
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Usage Reporting over data range *Small but useful improvement to reporting. User can set a date range on the usage report. |
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Validate *Validate is integrated in V3 and so customers that have both products can access them from the same client with the same account. |
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API Access *Validate API and the Payment API.
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Save Submissions *Save an ‘in-progress’ submission and return to it later. Build up a submission during the day |
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Customisable dashboard *Many useful, module specific, dashboard widgets, e.g. Payments, collections, workflow, etc. |
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