What is a Bacs Service User Number?
Organisations that collect payments by Direct Debit or make payments using Bacs Direct Credit will be familiar with the term ‘Service User Number’ – also referred to as a SUN. A Service User Number or SUN is assigned to an organisation when they have been approved to use Bacs sevices.
What Is a Bacs Service User Number?
A Bacs Service User Number (SUN) is a unique six-digit reference number. It is assigned to organisations that are authorised to use Bacs payment services. The SUN identifies the organisation originating Bacs transactions and enables banks to recognise who is submitting payments or collecting Direct Debits.
Service User Numbers are used for both:
- Bacs Direct Debit collections
- Bacs Direct Credit payments (such as payroll and supplier payments)
Each SUN is unique to the organisation and acts as an identifier of the organisation. Without a valid SUN, an organisation cannot collect Direct Debits into their own bank account, or make Direct Credit payments directly out of their own account.
In many cases, larger organisations may hold multiple SUNs to separate different business functions, brands, or payment activities.
Who Issues Bacs Service User Numbers?
Bacs Service User Numbers are issued by a sponsoring Payment Service Provider (PSP). Typically the PSP is a bank that participates in the Bacs scheme but the term also covers building societies / electronic money institutes etc.
Before a SUN can be allocated, the sponsoring bank will assess the organisation’s suitability to use Bacs services. This assessment often includes reviewing the organisation’s financial stability, operational processes, and compliance requirements. Once approved, the sponsor allocates a unique Service User Number to the organisation.
While Pay.UK operates the UK’s retail payment systems, including Bacs, the SUN is issued by the sponsoring bank rather than directly from Pay.UK.
What Is the Purpose of a Bacs Service User Number?
A Service User Number serves several important functions:
1. Identification
The SUN identifies the organisation that is collecting Direct Debits or submitting Bacs Direct Credit transactions. This allows banks and payment providers to track payment activity back to the originating organisation.
2. Security and Control
Only authorised organisations with a valid SUN can access Bacs services. This helps maintain the integrity and security of the UK’s payment infrastructure.
3. Payment Processing
The SUN is included within payment records submitted to Bacs. It ensures transactions are associated with the appropriate service user.
4. Reporting and Administration
Organisations can access reports and monitor submissions at a Service User Number level.
How Do I Get a Bacs Service User Number?
If you want to start collecting Direct Debit payments or making Bacs Direct Credit payments then you will want to obtain a Service User Number. Obtaining a Bacs Service User Number usually involves the following steps:
1. Contact Your Bank
The first step is to speak with your existing bank or another Payment Service Provider that sponsors organisations onto the Bacs scheme.
2. Complete the Sponsorship Process
Your bank will assess whether your organisation meets its requirements for sponsorship. This may include reviewing:
- Financial standing
- Business activities
- Internal controls
- Direct Debit collection volumes (if applicable)
3. Complete Required Training and Setup
Bacs requires organisations using its services to complete certain setup and onboarding requirements. For example, service users will need to nominate Primary Security Contacts and complete mandatory training.
At this point, you may also wish to consider scheme training – find out more here.
4. Receive Your SUN
After approving sponsorship, the bank will allocate a unique six-digit Service User Number. This SUN will then be linked to your organisation’s Bacs activities and payment submissions.
Do All Organisations who wish to use Bacs Payments Need Their Own SUN?
Not necessarily.
Many larger organisations choose to obtain their own Service User Number because it provides greater control over Direct Debit collections and Bacs payments. However, smaller organisations may choose to use a Facilities Management provider instead. This is where a Facilities Management provider can collect payments on your behalf using their own Bacs Service User Number and then provide cleared funds to you.
Frequently Asked Questions
What is the SUN?
SUN stands for Service User Number. It is the unique six-digit reference assigned to organisations authorised to use Bacs payment services.
How many digits is a Bacs Service User Number?
A Bacs Service User Number consists of six digits.
Can I collect Direct Debits without a SUN?
If you are collecting Direct Debits directly through the Bacs scheme, you will normally need a SUN. Alternatively, you may be able to use a Facilities Management provider that collects payments on your behalf.
Is a Service User Number the same as a company registration number?
No. A Service User Number is used specifically within the Bacs payment system, whereas a company registration number identifies a company at Companies House.
Can one organisation have multiple Service User Numbers?
Yes. Some organisations use multiple SUNs to separate different business units, brands, or payment activities.
How long does it take to get a Service User Number?
Timescales vary depending on the sponsoring bank, the complexity of the setup, and any compliance requirements that need to be completed.
Can a charity get a Bacs Service User Number?
Yes. Charities, businesses, membership organisations, and other eligible entities can apply for sponsorship through a participating bank, subject to approval requirements.
Any further questions?
If you are looking to collect customer payments by Direct Debit or streamline payroll and supplier payments, understanding how Service User Numbers work is important. If you want to know more please contact us today!