Provision of BACs Processing System

The Council is exploring the market for BACS‑approved, cloud‑based solutions and is seeking feedback on how suppliers can support

The Council is seeking a BACS‑approved, cloud‑based (SaaS) BACS payment and Direct Debit processing solution to support its high‑volume, mission‑critical payment operations. The solution must enable secure access to BACS for both inbound and outbound transactions, including the receipt of payments via BACS Direct Credits, payroll processing, outbound supplier and beneficiary payments, and Direct Debit collections.

The BACS system must be implemented and operational by 17 July 2027.

The following describes the Council’s current assumptions and initial view of its needs. Suppliers are encouraged to challenge these assumptions and propose alternative approaches where appropriate.

We are interested in understanding how supplier solutions support:

The solution should support:

Core Capabilities

All standard BACs payment types, including payroll, payments (Direct Credits), and Direct Debits

Submission of AUDDIS files

Sterling payments to and from UK bank accounts

24/7 browser-based access, allowing multiple authorised users to operate concurrently

Reporting and audit access, including historical transaction and user activity data

Processing of Payments for 10 independent business areas/External Systems

Scalability and configurable

Security and Risk Management

Key security and control features to include:

Multi-factor authentication, including options for smartcard-based (allowing digital signing of payment files), and/or smartcard‑free access

Granular user permissions and authorisation levels, supporting segregation of duties

Confirmation of Payee and payer name verification, to reduce misdirected payments and fraud risk

Validation of bank account numbers, sort codes and payment dates, including bank holiday awareness

These controls must be designed to support compliance, reduce failed payments and minimise operational risk.

Operational Flexibility and Automation

As part of an ongoing review of how we work, we would like the potential to:

Automate Direct Debit processing

Manage Direct Debit mandates, schedules, and transaction types electronically

Configure payment approval workflows aligned with organisational governance requirements

This flexibility would support the continued use of manual processing where required, while providing the option to progress towards increased automation over time, informed by the outcomes of the review.

Architecture and Deployment

Delivered as a Software as a Service (SaaS) solution

Accessible from standard web browsers, preferably Microsoft Edge

Support multi‑bank operation, enabling bank‑agnostic payment processing and future flexibility

Availability and Reliability

High system availability to ensure consistent access for users

Reliable end‑to‑end performance across submission, validation, and payment management

Support and Implementation

Configuration and implementation support

User training (on‑site or remote)

Documentation, user guides and helpdesk support

The high-level requirements set out above are not exhaustive. Please include any additional information you consider relevant or beneficial.