To manage Direct Debit payments, a business needs a BACS Service User Number (SUN), which is a unique identifier assigned to businesses that want to collect payments through the Direct Debit system.
This article will guide you through the process of obtaining a SUN, outlining the benefits, the steps involved, and what you need before applying.
Understanding how to get a BACS Service User Number can significantly streamline your payment processes and simplify your business operations.
Benefits of a SUN
Control
Having a SUN allows businesses to manage Direct Debit payments directly, without relying on third-party service providers. This control means you can oversee all aspects of your payment processing, providing accuracy and timely collections.
Efficiency
With a SUN, businesses can reduce errors and streamline the processing of Direct Debit payments. Electronic submissions through AUDDIS (Automated Direct Debit Instruction Service) eliminate the need for paper forms, speeding up the process and reducing the risk of mistakes.
Cost Savings
Obtaining a SUN can lead to significant cost savings. By managing Direct Debit collections in-house, businesses can avoid the commission or monthly fees charged by third-party providers.
This control over payment processing can lead to better cash flow management and reduced administrative costs.
How Do I Get a BACS Service User Number?
1. Contact Relationship Manager
The first step in obtaining a BACS service user number is to contact your bank’s relationship manager. They will guide you through the application process and provide you with the necessary forms and information.
2. Application forms
- Request and complete the required application forms. These forms typically include:
- Bacstel IP Indirect Submitter Form: This form is essential for gaining access to the Bacstel-IP service, which allows you to submit Direct Debit instructions electronically.
- AUDDIS Application: This form is necessary if you plan to use the AUDDIS system for the electronic submission of Direct Debit instructions.
- Paperless Direct Debit Application: If you intend to offer paperless Direct Debit options to your customers, this form will be required.
- Indemnity Form: This form is needed to cover any refunds that may be required if a Direct Debit is processed incorrectly.
3. Eligibility criteria
- Banks assess eligibility based on several factors, including:
- Enforcing Direct Debit Rules: Banks need to ensure that you can comply with the Direct Debit Scheme rules and minimise errors in processing.
- Financial Stability: Banks will evaluate your business’s financial stability to ensure you have sufficient reserves for any potential refunds.
4. Return completed forms
Submit the completed application package to your relationship manager. They will review the forms for accuracy and completeness before forwarding them to the bank’s BACS team for final approval.
5. AUDDIS Test and Training and Document Approval
If you plan to use AUDDIS, you will need to submit a test file to ensure your system can handle the electronic submission of Direct Debit instructions.
Additionally, if offering Paperless Direct Debit, staff training may be required to familiarise your team with the new processes.
Banks may need to approve any communication materials related to Direct Debit sign-up, such as confirmation letters or marketing materials.
Ensure that these documents comply with the bank’s requirements to avoid any delays in the approval process.
6. Receiving Your SUN
Upon successful completion of these steps, you will receive a live date from your bank, indicating when you can start processing Direct Debits under your own SUN.
Having a SUN not only enhances your control over payment collections but also improves efficiency and reduces costs.
Step-by-Step Summary
- Contact Relationship Manager: Initiate the process with your bank’s relationship manager.
- Complete Application Forms: Fill out necessary forms, including Bacstel IP Indirect Submitter, AUDDIS, Paperless Direct Debit, and Indemnity forms.
- Assess Eligibility: Ensure your business meets the bank’s criteria for enforcing Direct Debit rules and financial stability.
- Submit Forms: Return the completed forms to your relationship manager for approval.
- Optional Steps: Perform AUDDIS tests and train staff, and get document approvals if necessary.
- Receive Live Date: Upon approval, you will receive a date to start processing Direct Debits under your SUN.
Obtaining a Service User Number (SUN) for Direct Debit collections can provide your business with greater control, efficiency, and cost savings.
By following the outlined steps and understanding the requirements, you can smoothly transition to managing your Direct Debit payments in-house.
This not only enhances your operational efficiency but also ensures a better experience for your customers.
Start the process today by contacting your bank’s relationship manager and take the first step towards a more streamlined and cost-effective payment solution.
