Not all bank sort codes are specific to a particular branch. For example, occasionally a bank will use an umbrella sort code, under which it contains a lot of smaller branches. This is usually because they centralise the deposit and withdrawal process.
Occasionally a bank, or more often a building society, will use a different sort code for a deposit or a withdrawal. This is usually for older accounts where a specific sort code for direct debits is required.
Bank sort codes can be found on your debit card, cheque book or bank statements. In the case of eighteen digit card numbers, the sort code will sometimes be contained within it, usually between the first four numbers and the final eight, which is the account number.
In the computerised world in which we now all live it is important for the automatic banking system to be efficient and be able to make automatic deposits and withdrawals without human intervention. A major system employed in use in the UK is BACS. This stands for Bankers Automated Clearing Services and dates back to 1968 when paper transactions were the most popular. Now this is the only system in the UK by which to clear automated transactions.
If you have heard of BACS then it will most likely because of your employment. If you are paid directly into your bank account then this is the service that will be being used. However, it is also used for all of the automated debit and credit processes employed by the banks. Three quarters of the UK adult population now use the direct debit facility to pay at least one bill.
The use of online banking has enable people to retain a greater control over their account, from the comfort of their home they can check their balance and view their direct debits, dates of last payment and cancel them if they wish.
Since its initial set up BACS has undergone reforms, in 2004 it was split into two companies by the Office of Fair Trading, with one responsible for direct debits and credits and the other to oversee the whole system.
If you wanted to set up a BACS transaction this process has been made simple by the use of account numbers and bank sort codes. In order to set up a transaction you can simply supply your sort code and account number to the receiving company, in the case of a debit, and this is all the information that is required.
