How to Accept Bacs Payment in WooCommerce?

Do you know why over 90% of the UK’s salary payments are processed through Bacs? That’s because Bacs is one of the most trusted and widely used bank-to-bank transfer systems in the UK. If you’re running a WooCommerce store and looking to accept payments via Bacs, you’re already heading in a smart direction.

Bacs, short for Bankers’ Automated Clearing Services, is a UK-based payment system that facilitates direct debit and direct credit transfers between banks. It’s not instant transfers like Faster Payments or CHAPS, but it’s highly reliable for routine, low-cost transfers, making it a great alternative for businesses that want to offer flexible bank transfer options to their customers.

Here’s the best part: you can easily set up WooCommerce Bacs payments using a Bacs approved bureau like Stripe, combined with a free Stripe payment gateway plugin integration from WebToffee. This allows you to start accepting direct bank payments right from your WooCommerce checkout page, securely and seamlessly.

Ready to configure the Bacs payment method in WooCommerce and give your customers a solid alternative to cards and wallets? Let’s go.

Bacs, which stands for Bankers’ Automated Clearing Services, is a UK-based payment network that enables electronic fund transfers between banks. It’s one of the longest-running (since 1968) and most established payment methods in the UK, primarily used for Direct Debit and Direct Credit transactions.

When we talk about a Bacs payment, we’re usually referring to either a one-time or recurring bank transfer that happens over a three-day window. Bacs transfers follow a scheduled cycle, making them a predictable and cost-effective solution for businesses managing a large number of transactions.

Bacs Direct Debit vs Bacs Direct Credit

When discussing Bacs payments, it’s essential to understand its two core transaction types: Direct Debit and Direct Credit. Both facilitated through the BACS system serve different purposes.

• BACS Direct Debit allows businesses to withdraw funds directly from a customer’s bank account after obtaining proper authorization. This consent is provided through a mandate form or during the online checkout process via Bacs bureaus like Stripe.
• BACS Direct Credit is used to send payments to other accounts. It’s a standard payment method for distributing employees’ salaries, customer refunds, etc.

Understanding how Bacs works gives clarity on why it’s trusted by UK businesses for everyday transactions. Unlike instant payment methods, Bacs relies on a three-day processing cycle that is both reliable and cost-effective, which is essential to manage predictable payments.

The Bacs Payment Process

Here’s a quick look at how a Bacs payment transfer works:

• The payment is submitted to the Bacs system.
• The payment file is verified and then processed by the banks.
• On the third working day, the payment is transferred and settled.

Whether you’re collecting Direct Debits from customers or issuing Direct Credits to suppliers or employees, the same three-day window applies.

So, when you hear terms like: what does Bacs mean, are Bacs payments protected, Bacs meaning, or what does Bacs stands for, you now have the full picture: Bacs is a structured and secure way of handling large volumes of bank transfers, trusted across the UK.

Now, let’s take a look at how to accept payments via Bacs in your WooCommerce store.

If you’re using WooCommerce and want to accept Bacs Direct Debit payments, the good news is that the setup is straightforward, especially when you integrate with a Bacs-approved bureau like Stripe using a free payment gateway plugin from WebToffee.

This Stripe Payment Gateway plugin doesn’t just enable Bacs payment; it also lets you accept credit/debit cards, Google Pay, Alipay, and over 20 other payment methods within your WooCommerce store. You can also enable Stripe-hosted Checkout, a prebuilt payment page powered by Stripe to deliver a fast, secure, and conversion-optimized checkout experience. 

Let’s walk through the process and how you can configure the BACS payment using the free plugin in WooCommerce step by step.

Step 1: Install and Activate the WebToffee Stripe Plugin 

Go to your WordPress dashboard, navigate to Plugins > Add Plugin, and search for “Stripe Payment Plugin for WooCommerce”. Install and activate the plugin developed by WebToffee.

Step 2: Connect Your Store to Stripe

Once activated, go to WebToffee Stripe in the WordPress dashboard, and click on Connect to Stripe. Follow the on-screen steps to link your WooCommerce store to your Stripe account. If you don’t have a Stripe account yet, you can register one during this process.

Once connected, you’ll see a screen (like the one shown below), indicating that your store is successfully linked. Keep in mind, you’re in test mode. You can click Switch to live mode at any time from the top right.

Once connected, enabling Bacs payments in WooCommerce becomes straightforward and just a few clicks away.

Step 3: Enable the Bacs Payment in WooCommerce Stripe Settings

Next, in the WebToffee Stripe dashboard, go to Local Gateways and click on Bacs to enable WooCommerce Bacs Direct Debit.

• Check the checkbox to enable Bacs Direct Debit.
• Optionally, edit the title, description, and button text that will appear to your customers during checkout.
• Click Save changes to update the WooCommerce Stripe settings.

That’s it! Setting up Bacs payment in WooCommerce is as easy as that. Now, let’s see how WooCommerce Bacs payment is activated in your store.

Step 4: Test the Bacs Payment Flow 

This is an optional but recommended step when setting up different payment methods in WooCommerce. Before going live, switch your Stripe account to “Test Mode” and simulate a Bacs payment transfer. This ensures everything works smoothly before accepting real payments.

Step 5: Go Live and Accept WooCommerce Bacs Payments

Once you’ve confirmed everything is working, switch back to “Live Mode” and you’re ready to start accepting Bacs payment in WooCommerce. Customers will now see the option at checkout and be given the account number and sort code to complete the payment.

By following these steps, you can easily set up WooCommerce Bacs payments, offer more flexibility to your UK-based customers, and even streamline recurring payment collections for subscription-based products or services.

Adding Bacs as a payment method in WooCommerce is more than just ticking off another payment gateway. It can elevate how you handle cash flow, reduce payment friction for your customers, and better match buying preferences.

Here’s why enabling WooCommerce Bacs payments makes business sense:

➞ Lower Transaction Costs

Compared to card payments or CHAPS transfers, Bacs transactions are relatively inexpensive. This makes them ideal for high-value orders or recurring billing models, where transaction fees can quickly add up.

➞ Subscription and Recurring Payments

With Bacs Direct Debit, you can automate regular billing cycles. Once a customer gives authorization, you can collect payments for subscription products, membership sites, and installment-based services. Using the premium Stripe Payment Gateway plugin, this automation is made secure and seamless.

➞ Customer Trust and Familiarity

In the UK, Bacs is a trusted and widely used system responsible for processing thousands of transactions annually. Giving your customers the option to make payments via Bacs Direct Debit builds trust.

➞ Improved Cash Flow Management

Since Bacs payment follow a predictable 3-day settlement cycle, businesses can better anticipate when funds will arrive. This reliability allows for more effective budgeting and reduces the stress of surprise delays.

➞ Strong Fraud Protection

Working with a Bacs approved bureau like Stripe adds a layer of protection. These bureaus handle sensitive banking data using secure and compliant systems. Stripe also automates mandate management and reduces human error, which minimizes the risk of disputes and chargebacks.

➞ Better Checkout Experience

Thanks to the WebToffee Stripe integration, setting up Bacs on WooCommerce is quick and easy. Customers enter their bank details, authorize the mandate, ie, grant permission to collect payments, and that’s it. By enabling Bacs payment via Direct Debit, you offer your customers a payment option that’s secure, familiar, and cost-efficient.

If you’ve been looking for a reliable and cost-effective way to accept bank-to-bank payments in your WooCommerce store, enabling Bacs payments is a smart move, especially if you are a UK-based business or targeting UK audiences.

We’ve walked through the essentials of what Bacs payments are, how they work, and how they differ from alternatives like CHAPS. You now know the value of enabling Bacs Direct Debit in your WooCommerce store.

With a Bacs-approved bureau like Stripe and the free Stripe payment plugin from WebToffee, integrating Bacs payments into your WooCommerce store becomes easy.

That’s it, folks! Thanks for sticking through the WooCommerce Bacs payment guide. We hope this helps you feel confident and ready to activate Bacs payments on your WooCommerce store. If you’re ready to get started, you’re just a few clicks away from making it happen.

Thanks for reading!