What Is a Bank Giro Credit?
A bank giro credit (BGC) is a paper-based payment instruction that tells a bank to credit a specific account with a set amount of money. In the UK, the giro credit slip is printed at the bottom of bills, invoices, and payment booklets — typically for utilities, council tax, credit cards, and court fines — and allows the payer to hand it over at a bank counter or post office together with cash or a cheque.
Despite the rise of online banking and Faster Payments, bank giro credits remain in active use across the UK, processed through the Bacs payment scheme operated by Pay.UK. This guide explains the mechanics, the banks that still accept them, and what alternatives exist.
How Does a Bank Giro Credit Work?
The BGC slip contains pre-printed details of the payee's bank account: sort code, account number, and often a reference number that helps the payee's system match the payment to the correct customer record. The payer presents the slip plus payment at a bank branch or Post Office. The receiving bank processes the transaction through the Bacs scheme, and funds typically arrive in the payee's account within two to three working days — slower than Faster Payments (which are near-instant) but the BGC remains in use for payees who prefer paper trails or who use legacy billing systems.
Bank Giro Credit vs Other UK Payment Methods
| Method |
Speed |
Paper Required? |
Cost to Payer |
| Bank Giro Credit |
2–3 working days |
Yes |
Free at most banks |
| Faster Payment (online) |
Seconds |
No |
Free |
| Standing Order |
Same day (Bacs) |
No |
Free |
| Direct Debit |
Same day (Bacs) |
No |
Free (payee initiates) |
| Cheque |
Up to 6 working days |
Yes |
Free |
Which Banks Still Accept Bank Giro Credits in 2026?
The acceptance of BGC slips at bank counters has declined significantly as branch networks have shrunk. As of 2026, the general position across major UK banks is:
| Provider |
BGC at Branch? |
BGC at Post Office? |
Notes |
| Lloyds / Halifax |
Yes |
Yes |
Widely accepted |
| Barclays |
Limited |
Yes |
Some branches have cashier-free zones |
| NatWest / RBS |
Yes |
Yes |
Accepted at staffed counters |
| HSBC |
Yes |
Yes |
Accepted at staffed counters |
| Santander |
Yes |
Yes |
Also accepted at Post Office |
| Nationwide |
Yes |
Yes |
Via Post Office Banking |
| Monzo / Starling |
No branch |
No |
Digital-only; BGC not accepted |
Always confirm acceptance directly with your bank before travelling to a branch, as policies can change and not all branches maintain staffed counters.
The Pay.UK Bacs Scheme: How BGCs Are Processed
Bank giro credits are processed through the Bacs payment scheme, which is operated by Pay.UK — the independent, industry body that governs the UK's retail payment infrastructure. Bacs handles three types of transaction: Direct Debits, Bacs Direct Credits (salary payments, benefits), and bank giro credits. All three follow a three-day processing cycle: items submitted on Day 1 are cleared on Day 2 and settled on Day 3. The scheme processes hundreds of millions of transactions per year, and BGCs — though declining — remain a permitted transaction type under the Bacs scheme rules published by Pay.UK.
Case Scenario 1: Paying a Council Tax Bill
Scenario: A resident in Birmingham receives a council tax bill with a BGC slip at the bottom. She does not have online banking and prefers to pay in person. She takes the BGC slip and cash to her local Post Office. The Post Office processes the payment through the Bacs scheme. The council's account is credited within three working days, and the resident receives a stamped receipt as proof of payment. No bank account is required on the payer's side for this transaction.
Case Scenario 2: Credit Card Bill Payment
Scenario: An older customer receives a paper credit card statement from his bank with a BGC slip. He visits his local bank branch, presents the slip, and pays via debit card. The bank logs the payment against his credit card reference number, which is encoded on the BGC slip. The payment posts to his credit card account within two working days and he avoids a late payment fee.
Is the Bank Giro Credit Being Phased Out?
Pay.UK and major banks have been gradually reducing paper-based payment infrastructure as digital alternatives become universal. However, the FCA's Consumer Duty (effective 2023) requires firms to consider the needs of all customer groups, including those who rely on in-person and paper payment methods. This creates a regulatory obligation on banks to maintain access to BGC processing for customers who cannot or do not wish to use digital channels. As of 2026, Pay.UK has not announced a formal end date for the BGC transaction type within the Bacs scheme.
Alternatives to Bank Giro Credits
- ▸Faster Payments — online or mobile bank transfer using sort code and account number; arrives in seconds.
- ▸Direct Debit — the payee collects automatically each billing period; no action required by the payer.
- ▸Standing Order — a fixed, regular payment you set up in online banking.
- ▸PayPoint — available at convenience stores and supermarkets for utility and council tax payments; some payees issue PayPoint barcodes instead of BGC slips.
- ▸Telephone banking — many banks allow bill payments over the phone using your sort code and account number.
Related reading: UK Bank Safety, FSCS & Sort Codes 2026 | How to Do a Bank Transfer UK | How to Put Cash Into a Bank Account UK
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Always verify rates and processes with official sources before making any financial decision.
Frequently Asked Questions
What is a bank giro credit slip?
A bank giro credit slip is a pre-printed payment voucher attached to a bill or invoice. It contains the payee's sort code, account number, and a payment reference, allowing the payer to make a payment at a bank branch or Post Office without needing to know the payee's full banking details themselves.
How long does a bank giro credit take to clear?
Bank giro credits processed through the Bacs scheme typically take two to three working days to clear. This is slower than Faster Payments but faster than a cheque, which can take up to six working days.
Can I pay a bank giro credit online?
No. A bank giro credit is a paper-based instrument that requires physical presentation at a bank counter or Post Office. If you wish to pay electronically, use the sort code and account number printed on the BGC slip to make a Faster Payment through online or mobile banking instead.
Does Monzo or Starling accept bank giro credits?
Digital-only banks such as Monzo and Starling do not have branch networks and do not accept bank giro credit slips. Customers of these banks should use Faster Payments or the other digital methods listed in their app.
What happens if I lose the BGC slip?
If you lose a bank giro credit slip, the payee's sort code and account number are usually available on their website or by calling their customer service line. You can then make a Faster Payment manually using those details and your own reference number (usually your customer or invoice number).
Are bank giro credits being discontinued?
Pay.UK has not announced a formal end date for BGC processing within the Bacs scheme as of 2026. However, fewer billers issue BGC slips and fewer bank branches have staffed counters to accept them. The FCA's Consumer Duty obliges banks to maintain payment access for all customer groups, which provides some protection for paper payment methods in the near term.
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