Bankers' Automated Clearing Services (Bacs) underpins a large share of UK payment activity. In the fourth quarter of 2024 alone, the system processed around 1.745 billion payments, moving approximately £1.47 trillion in value. Owned and managed by Pay.UK, Bacs powers salaries, supplier runs, pensions, and government disbursements.

At this scale, even routine processing considerations, such as duplicate entries or incorrect account details, can negatively impact payments as they move through the system. Because Bacs recall activity isn’t published in detail, businesses often have limited visibility into how frequently recalls occur or how often they succeed. While the recall process itself is well-defined, outcomes can depend on timing, payment status, and how quickly teams act once an issue is identified. Understanding how the process works helps teams respond more effectively when they need to make corrections.

Below, we’ll discuss how a Bacs recall request works, the time limits that apply to recalls, and how to build an internal process that will help you catch errors quickly and recover funds effectively.

What’s in this article?

• Can a Bacs payment be recalled?
  
• How does the Bacs recall process work?
  
• What deadlines or limits apply to Bacs recalls?
  
• What scenarios might require a Bacs recall request?
  
• How can teams manage and track recall requests effectively?
  
• How Stripe Payments can help
  

Can a Bacs payment be recalled?

Yes, a Bacs Direct Credit payment can be recalled through a Bacs recall request, which gives your bank the chance to intercept a payment that hasn’t yet cleared. The bank on the receiving end will attempt to stop the credit and reroute it back to you before it lands in the recipient’s account.

This process only applies to outgoing direct credits. Incoming direct debit refunds are handled separately through the Direct Debit Guarantee.

How does the Bacs recall process work?

Bacs runs on a payment cycle that takes around three working days, and the recall window closes fast. It’s important to know how to navigate it quickly and effectively.

Here are the steps of the recall process:

1. Your team spots the issue and contacts the bank

Once you spot the issue, immediately notify whoever manages payment operations on your team. The recall needs to be submitted before the funds are received. Your team will reach out to the bank with the payment information: the recipient account number and sort code, payment amount and date.

2. The bank triggers the recall

If you’re still within the window, your bank initiates the recall through the Bacs system. You might use a Bacs-approved bureau or payments provider, such as Stripe, that facilitates communication with your bank. Either way, it’s your bank’s job to initiate the formal recall. That instruction is then routed to the recipient’s bank with a simple request to return the funds rather than credit the recipient’s account.

3. The recipient’s bank responds

As long as the payment hasn’t landed in the recipient’s account, their bank can stop it and send it back. If it’s too late, you’ll need the recipient to agree to return the money.

4. Funds are returned

When a recall is successful, you’ll usually see the money back in your account within a few business days. Banks don’t always confirm proactively, so you’ll want to check for the credit.

What deadlines or limits apply to Bacs recalls?

Bacs recalls come with hard cut-offs. In the three-day Bacs cycle, the critical deadline is noon on the business day before the payment is due to settle. After the payment clears, a formal recall isn’t an option.

You can avoid this process if you catch the error on the same day you submit the Bacs file (i.e., the first day of the Bacs cycle). Then, your bank might be able to withdraw the entire file by the end of the operating window, typically 10:30 p.m. At that point, you can correct the issue and resubmit the next day. Not all banks support this option, and many charge a flat fee per recall.

While recalls are for real errors only (e.g., duplicate payments, wrong accounts, incorrect amounts), Bacs doesn’t restrict recall amounts, which means you can request a reversal for any payment still in process.

What scenarios might require a Bacs recall request?

Recalls are the only backstop when something goes wrong with a Bacs payment.

They’re especially useful in a handful of common scenarios:

• Duplicate payments: If the same invoice or payroll entry goes out twice, a recall lets you intercept the second payment before it reaches the recipient.

• Wrong account details: If you were off by a digit in the sort code, for example, your funds might be sent to the wrong account. A recall can redirect the money before it hits the unintended destination.

• Wrong amount: If someone adds an extra zero to the payment amount, a recall gives you a chance to cancel the transfer and fix it before the funds settle.

• Fraudulent or unauthorized payments: In suspected fraud cases, recalls are one of the only tools that give you a chance to reverse mid-transfer.

How can teams manage and track recall requests effectively?

Recalls only work if your team can spot errors fast and act with precision. That means building systems before something goes wrong.

Here are some best practices:

Tighten your payment reviews

Recall-worthy issues are usually preventable. Put validation steps in place before files are submitted.

Define a recall process

Create a documented process that details who notices the error, who contacts the bank, and what details need to be shared. Make sure it moves fast, within hours.

Track recall requests

Log the payment details, date and time the recall was submitted, and who handled it at the bank. Then, confirm that the funds were actually returned.

Be ready with a backup plan

If the recall window has already closed, you might need to contact the recipient directly or adjust future payments to reconcile the error. Either way, your team should be prepared.

Treat every recall as a learning opportunity

Reflect on your process and consider what went wrong. How was the error caught and how did it happen in the first place? What would have made it easier to fix and how can you improve your process for the future?

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.

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• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.

• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.