Pay.UK User Reviews: UK Fees and Prices

Pay.UK is a UK-based company that facilitates fast and secure payment processes for individuals, businesses, and institutions across the country. Their services include a Basc payment system, Faster payment system, and Image clearing system.

Being one of the key players in the field of innovative payment solutions, Pay.UK powers an array of digital networks that connect customers with banks, building societies, and payment providers. This enables seamless money transfers across the entire country.

Sections

Features

Pay.UK’s dedicated work towards maintaining a robust and resilient payments infrastructure gave birth to a number of features and products useful for any retailer. Let’s see what they are.

Pay.UK Payment Systems

Access to Payment Systems

Businesses and organisations can become direct or indirect participants a.k.a have direct or indirect access to a payment system.

Direct participants have an arrangement directly with the payment system operator, provided that they meet the required criteria, and sometimes also hold operational licenses.

Indirect participants typically have a contractual arrangement with an indirect payment service provider, granting them access to the payment system. This arrangement is also known as “sponsored access” or “agency banking” and adheres to specific rules and regulations. Indirect participants receive constant support in complying with these rules and regulations from their sponsor.

Current indirect access providers offering sponsored access to Pay.UK payment services in the UK include the following:

Barclays
Clearbank
HSBC
Loyds Bank
Modulr
NatWest
Royal Bank of Scotland
Starling Bank
The Bank of London
Ulster Bank

Bacs Payment System

This payment system is widely utilized for paying salaries, dividends, benefits, and supplier payments directly to bank accounts. It is also the preferred method for processing Direct Debits, the automatic collection of regular payments, favoured by a majority of UK citizens for bill payments.

Banks, building societies, authorised payments, and/or electronic money institutions are eligible for Bacs direct participation.

To find out whether Bacs direct participation is right for their organisation, it’s recommended that interested parties review Bacs Service Principles.

Faster Payment System

Faster Payment System is available 24/7 and supports both personal and business customers’ demands. It facilitates payments of up to £1 million. Anyone with a bank account can initiate this type of payment online, via mobile, or phone banking.

These real-time payments can’t be cancelled, although building societies and banks across the UK offer Credit Payments Recovery Process designed to help out in cases when a mistake has been made.

After the payment has been completed, funds are usually instantly available. In some cases, the delay can be up to two hours. This applies to both direct and indirect participants.

Types of faster payment transactions include:

Single immediate payments
Forward-dated payments
Standing orders
Direct corporate access payments

If you would like to join the Faster Payment System via Pay.UK, you can do that in three ways:

As a directly connected settling participant – you are setting your own transaction limits and performing your own settlement with the Bank of England. If you have a high payment volume you are probably eligible to open a settlement with them.
Directly connected non-settling participant – you are directly connected to the Faster Payment System through a sponsor that manages the settlement with the Bank of England for the payment service provider.
Indirect payment service provider – this option facilitates a payment service provider’s connection to the Faster Payment System through a sponsor. The sponsor manages the sending and receiving of Faster Payments and performs the settlement with the Bank of England for the PSP.

Find out what your participation eligibility is by reading Faster Payment Service Principles.

Image Clearing System

The Image Clearing System revolutionises cheque and credit processing by facilitating an exchange of digital images of cheques and bank giros between UK banks and building societies for settlement and clearing.

This system replaces the paper-based clearing system and makes the cheque-clearing process significantly faster, especially if the cheque is deposited digitally. It applies to sterling cheques, bankers’ drafts, warrants, government payable orders, postal orders, bill payments with cheques or cash, and travellers’ cheques.

To find out whether you’re eligible to participate in this system, and whether this system is the right one for you, take a look at the Image Clearing System Service Principles Guide.

Pay.UK Switching Services

Apart from operating the UK’s national retail payment systems, Pay.UK also manages a number of other important switching services on the industry’s behalf.

Current Account Switch Service

The Current Account Switch Service simplifies the process of switching current accounts between the UK’s building societies and banks. The service is completely free of charge and available to small businesses, individual users, trusts, and charities.

The service implies a switch guarantee which assures that all payments linked to the customer’s old account (which is closed upon completion), will be transferred to the new account and ready for use from a pre-agreed switch date. The process of switching can take up to seven workdays and for a period of at least three years.

Payment Transfer Service

Payment transfer service doesn’t require customers to close their existing account or to automatically transfer all of their payments to the new account, yet, it provides them with some of the features of the Current Account Switch Service.

The service is not time-limited and it enables switching between account product types different from current accounts.

For more clarity, here is a tabular comparison between Current Account Switch Service and the Payment Transfer Service.

A potential Payment Transfer Service or Current Account Switch Service participant needs to meet certain eligibility criteria. Here’s a tabular overview of the criteria to help you determine whether you are the right candidate for these services.

Cash ISA Transfer Service

Cash ISA Transfer Service is designed to automate the communication between two financial organisations during a Cash ISA Transfer. This process replaces paper-based processes, but it requires both ISA providers to actively participate. If one provider doesn’t use the service, the transfer must be completed manually.

Here are the types of transfers that this service supports:

Bulk Payment Redirection Service

The Bulk Payment Redirection Service (BPRS) offers an efficient solution for ensuring continuous receipt of payments when a sort code or account number is changed.

It leverages the central redirection facility from the Current Account Switch Service (CASS) and caters to organisations too large for the CASS. Those organisations are usually local authorities, government departments, or corporate Direct Debit service users. The BPRS facilitates the seamless switch of the current payment service provider. This transition reduces costs while significantly improving efficiency.

There are various scenarios when BPRS is valuable:

When a large business is switching payment service providers
Due to mergers or takeovers leading to account detail changes
In the case of payment provider branch closure
When payment service providers switch sponsors or wish to establish themselves independently

The process involves adding the old and new account details to the central redirection database, ensuring any payments made with the old details are automatically redirected to the new account.

Pay.UK Industry Services

Biller Update Service

This centrally managed facility enables the participating organisations to disseminate and update biller information more efficiently than ever before. Receiving organisations can maintain and update their own biller lists through this service, which they can then give to their customers through telephone and Internet banking channels.

The service offers an optional, yet a valuable tool for payment service providers and organisations. The tool provides a managed and consistent process for capturing, validating, and sharing biller information.

Sort Code Checker

Pay.UK’s Sort Code Checker is designed to enable the use of automated payments to make all kinds of payments: from internet payments to online banking or paying bills via Direct Debit.

Sort Code Checker checks whether the sort code that is supposed to receive a payment is actually able to receive Faster Payments, CHAPS, or Bacs Direct Credits. It sends confirmation on whether setting up a Direct Debit Instruction or clearing a cheque is possible.

This is important because failing to obtain up-to-date information can result in additional costs and reduce the efficiency of money transfers.

Extended Industry Sort Code Directory

You can easily reduce the occurrence of unpaid Direct Debits and unapplied Bacs Direct Credits in your organisation by downloading the most recent sort code data more frequently.

The Extended Industry Sort Code Directory (EISCD) is an updated version of the Industry Sort Code Directory (ISCD), which is a downloadable database containing comprehensive information about all payment service providers connected to the UK clearing systems. This includes Bacs, Faster Payments, CHAPS Sterling, and Cheque and Credit Clearing.

The EISCD contains all the essential details related to the offices or branches of payment service providers.

SEPA IBAN-Only Directory

SEPA (Single Euro Payments Area) is an area in which both legal and private subjects can make and receive payments in Euros in Europem regardless of where exactly they are located.

IBAN (International Bank Account Number) is a standardised way that makes this possible, as it allows banks overseas to seamlessly handle account numbers and identify beneficiaries in any country.

Customers with IBANs can make payments across the whole European continent and since 2016, an SEPA payment needs to be processed solely using a customer’s IBAN. This is called SEPA IBAN-Only (SEPAIO) exchange and it helps reduce errors in electronic payments.

To find the UK SEPA BIC code for an individual IBAN, you can use this SEPAIO lookup tool.

The SEPA IBAN-Only Directory is a utility for payment service providers in the UK. It enables them to derive the BIC from the IBAN for SEPA payments. The Directory was developed by SWIFT through its reference data platform. It ensures compliance with SEPA regulations.

Third-Party Assurance

Bacs Accredited Facilities Management Provider

A Bacs-accredited facilities management provider is a service provider that takes responsibility for the collection or administration of Direct Debits on behalf of another organisation, known as the facilities management client.

These providers offer such services to third parties, from sole traders to corporations, with or without imposed charges, making them commercially operating entities. To promote fair competition in the use of the Bulk Change Process, all such commercial facilities management providers are required to be accredited by Pay.UK, since they manage Direct Debit payments in the UK.

A facilities management provider who wants to become accredited needs to follow these steps:

Identification: sponsoring payment services providers should first identify and confirm commercial facilities management providers in their pool of users.
Application: a service user must complete an application form provided by their sponsoring payment service provider.
Documentation: Pay.UK provides documentation to the applicant organisation which includes an accreditation agreement, a questionnaire about their operations and facilities management, enforcement of compliance document, and a tariff agreement.
Direct Debit Instruction: the applicant must complete a Direct Debit Instruction to authorise the collection of accreditation fees.
Review and Accreditation: upon completing all documentation, Pay.UK will review the application and grant accreditation if compliant.
Ongoing Requirements: accredited organisations must fulfil ongoing obligations, including an annual self-certification questionnaire and payment of an annual fee. Pay.UK may also conduct inspections to ensure compliance.

The accreditation process typically takes one month. Failure to meet the requirements can result in the organisation being prevented from collecting Direct Debits.

Bacs Approved Software Service

The Bacs Approved Software Service (BASS) is a program designed to assess and approve software solution providers who develop and supply software, hardware, and consultancy services to Bacs Payment System customers. The approval ensures that their products meet rigorous standards and criteria set by Bacs, enabling these customers to use the Bacs service effectively and securely.

Steps to becoming a Bacs-approved software supplier:

Application: submit an application form to Bacs.
Testing and training: software packages need to undergo mandatory testing by BASS. Some staff members from the solution supplier might also need to undergo appropriate training that covers the Bacs Payment System.
Approval: once the software is deemed compliant, Bacs grants approval.

Each supplier needs to meet these two conditions:

Compliance: software packages must meet the BASS standards for authentication, secure communication, data structure, error handling, and trademark usage.
Fees: suppliers need to meet an approval fee and an ongoing maintenance fee.

Certified Bank Giro Credit Printers

A certified bank giro credit (BGC) printer is a printer that has been approved and meets strict security, confidentiality, and quality standards. A certified printer ensures that all bank giro credits that go through the credit clearing process comply with specific design, layout, and printing requirements.

Sort Code Validation Accreditation Scheme

Sort Code Validation Accreditation Scheme was terminated at the end of 2021, but Pay.UK recommends any interested parties to contact them via the following email: enquiries@wearepay.uk.

Bacs Approved Bureau Scheme

Bacs-approved bureaux are organisations that handle Bacs and Faster Payment transactions on behalf of other companies. The Third Party Assurance team at Pay.UK reviews these bureaux to ensure they meet the necessary standards. Many organisations choose to use approved bureaux for various reasons, such as for making only a few transactions per month, being unable to meet the criteria for direct submissions, being newly established, or being small to medium-sized enterprises (SMEs) with lower turnovers.

Supporting guidelines for becoming a Bacs-approved bureau can be found on this link.

Bacs Training Accreditation Scheme

The Bacs Training Accreditation Scheme (BTAS) is a program designed to ensure the quality and relevance of Bacs-related training courses. Training providers can apply to have their courses accredited, which means the content is kept up-to-date and aligns with the latest version of the guide and rules.

Attendees of Bacs accredited training courses enjoy various benefits, such as receiving current compliance advice, learning about the latest best practices, maximising the use of Direct Debits and Bacs Direct Credits, and exchanging knowledge with peers.

BTAS encourages businesses to send their staff on accredited courses, particularly for new employees, those with changed duties involving Bacs products, or as refresher training to keep knowledge up-to-date. The Bacs accredited training logo helps identify approved training providers and their courses.

Here’s a list of Bacs-accredited training course providers:

Accountis
Allpay
ClearDebit
Movimo Ltd

Cheque Printer Accreditation Scheme

The Cheque Printer Accreditation Scheme (CPAS) is a program introduced to ensure the quality and relevance of cheque printing services. Cheque printing providers can apply to have their services accredited under CPAS. Accredited providers meet specific standards and guidelines to ensure that their cheque printing processes are up-to-date and comply with the latest regulations.

Businesses and individuals can identify accredited cheque printing providers through the CPAS logo. Choosing an accredited provider offers several benefits, including assurance of compliance, access to the latest best practices, and getting the most secure and reliable cheque printing services. CPAS encourages businesses to use accredited providers, especially when printing cheques for sensitive financial transactions.

Technical Aggregators, Solution Providers, and Consultants

Technical Aggregators, Solution Providers, and Consultants are entities that offer services related to the Faster Payments Central Infrastructure. They enable other organisations to interact with the infrastructure effectively and securely.

These services can range from providing connectivity solutions to helping businesses connect to the Faster Payments system, ensuring compliance and technical capability.

These entities help businesses connect to and use the Faster Payments system efficiently. They prove their technical ability through a cloud-hosted test environment provided by Ascert, which allows them to demonstrate their capabilities in interacting with the infrastructure.

Achieving accreditation enables them to market their services effectively, and it also benefits their clients, as it ensures that they can connect to the Faster Payments system without expensive testing and with confidence in their aggregator’s capabilities.

New Payments Architecture

The New Payments Architecture (NPA) program by Pay.UK aims to develop a cutting-edge retail payment system for the UK.

This initiative aligns with their strategic goal of becoming the most intelligent and efficient way to transfer money now and in the future.

By upgrading the existing payment platforms, NPA brings significant advantages to their customers, end users, and the overall UK economy. It represents a major step towards modernising and improving the capabilities of their payment infrastructure.

NPA Industry Engagement

The NPA project involves collaboration with various stakeholder groups, including the wider payments industry, regulators, consumers, and business advocates, whose input ensures the success of the initiative.

Pay.UK engages with stakeholders through industry user groups, conversations, and forums.

The groups cover a wide range of important topics such as business-related issues, technology, security, and operations. These Pay.UK-managed groups are: Strategic Participant Group, Commercial Industry Group, and Technical Operational User Group.

Pricing

Below, we’ve outlined the only publicly available information on product pricing and payment methods with Pay.UK.

ISO Issuer Identification Number costs £660 (VAT zero-rated). This is a one-off payment.
UK International Issuer Identification Number: £792 (£660 + £132)VAT).
- Yearly maintenance: £30 + VAT @ 20%.
UK National Issuer Identification Number: £420 (£350)£70.00VAT). This is a one-off payment.
Register of UK IIN Card Issuer Identification Numbers: £120 (£100 + £20 VAT) per year.
Registered Identifier Number: £360 (£300 + £60 VAT). This is a one-off payment.

Payment methods available:

Credit or Debit Card transaction
Bank transfer

Company History

Pay.UK, formerly known as the New Payment System Operator, is the organisation responsible for operating the UK’s critical retail payment systems. It was formed as part of the UK’s strategy to modernise and consolidate the country’s payment systems.

The history of this company can be traced to 2014 and the creation of the Payment Systems Regulator, which was established to promote competition and innovation in the payment systems sector. In 2017, the New Payment System Operator was established with the goal to streamline and improve the payment systems.

This company brought together the operations of three major payment systems: Bacs Payment Schemes Limited (Bacs), Faster Payments Scheme Limited, and Cheque and Credit Clearing Company Limited. The consolidation aimed to create a more efficient and unified payment infrastructure for the UK.

In 2019, the New Payment System Operator rebranded as Pay.UK. The company’s main responsibilities today include operation of the Bacs Direct Credit, Direct Debit, and Faster Payment systems, as well as overseeing the development of novel payment solutions (NPA).

User Reviews from Around the Web

We managed to find only one website where users left their Pay.UK reviews.

Trust Pilot: 3.7/5 (2 total reviews).