If your business plans to collect payments by Direct Debit, you’ll need a Bacs Service User Number (SUN). A Service User Number is a unique identifier that allows organisations to submit Direct Debit instructions through the Bacs payment scheme.
Whether you’re new to Direct Debit or preparing to automate payment collections, understanding how to obtain a Bacs Service User Number is an essential first step.
This guide explains what a SUN is, how to get one, the eligibility criteria and what happens once your business has been approved.
UPDATED Version: Please see AccessPay’s Comprehensive Guide to SUNs.
What is a Bacs Service User Number?
A Bacs Service User Number (SUN) is a unique six-digit number issued to organisations that collect payments via Direct Debit. It identifies your business within the Bacs payment scheme and confirms that you’re authorised to submit Direct Debit transactions.
Your Service User Number is used by banks to:
- Identify your organisation when processing Direct Debit collections.
- Display your business name on your customers’ bank statements.
- Determine which organisation is responsible should a Direct Debit indemnity claim arise.
Without a valid Bacs Service User Number, businesses cannot submit Direct Debit payment files through Bacs.
How to Get a Bacs Service User Number
To obtain a Bacs Service User Number, your business must apply through a sponsoring bank that is a member of the Bacs scheme. Each bank has its own application process and approval requirements, so you’ll need to contact your banking provider for specific guidance.
Before issuing a Service User Number, banks typically assess:
- Financial stability
- Business integrity
- Management experience
- Administrative capability
- Your ability to comply with Direct Debit scheme rules
These checks help protect the integrity of the Direct Debit scheme and ensure organisations can manage customer payments responsibly.
What Happens After You Receive Your SUN?
Once your Bacs Service User Number has been approved, your business can begin collecting Direct Debit payments from customers.
You can choose to manage Direct Debits using either:
- Paper-based Direct Debit mandates
- Paperless Direct Debit solutions
Many organisations choose to automate this process using Bacs-approved software, reducing manual administration while improving accuracy and compliance.
It’s important to maintain high service standards. Excessive customer disputes or claims under the Direct Debit Guarantee could result in your sponsoring bank reviewing or withdrawing your Service User Number.
Who Needs a Bacs Service User Number?
A Bacs Service User Number (SUN) is required for organisations that want to collect payments from customers using Direct Debit. Whether you’re a growing business, charity, membership organisation or enterprise, a Service User Number enables you to submit Direct Debit collections through the Bacs payment scheme.
Businesses typically need their own SUN if they:
- Collect recurring payments from customers.
- Manage Direct Debit collections in-house.
- Want greater control over their payment processes.
- Process a high volume of Direct Debit transactions.
Smaller organisations or businesses new to Direct Debit may choose to work with a Bacs-approved bureau or payment provider instead of obtaining their own Service User Number. This can simplify onboarding while still allowing businesses to collect Direct Debit payments.
As payment volumes increase, many organisations choose to obtain their own Bacs Service User Number to gain greater flexibility, control and visibility over their payment operations.
Can You Collect Direct Debits Without Your Own SUN?
Yes. It’s possible to collect Direct Debit payments without having your own Bacs Service User Number by using a third-party provider or Bacs bureau.
These providers submit payment instructions using their own Service User Number on your behalf, making it easier for businesses to start collecting Direct Debits without completing the full sponsorship process with a bank.
However, there are important considerations:
- Your provider remains responsible for submitting payment files.
- Your level of control may be more limited than having your own SUN.
- Fees may apply for managed Direct Debit services.
- As your business grows, obtaining your own Service User Number may provide greater flexibility and operational efficiency.
The right approach depends on your organisation’s size, payment volumes and long-term payment strategy.
Simplify Direct Debit Management with AccessPay
Managing Direct Debits doesn’t need to be complex. AccessPay’s Bacs-approved Direct Debit solution helps organisations automate payment collection while maintaining compliance with Bacs requirements.
Our platform provides:
- Automated Direct Debit processing
- Paperless mandate management
- Payment monitoring and alerts
- Exception reporting
- Improved operational efficiency
By automating Direct Debit collections, your organisation can reduce manual work, minimise payment failures and make the most of your Bacs Service User Number.
