The Automated Direct Debit Instruction Service (I know, a mouthful, right?), also known as AUDDIS, is a service from Bacs which enables organisations to send new Direct Debit Instructions to their customer’s banks electronically.
AUDDIS automates the transfer of Direct Debit Instructions from collecting organisations to the paying financial institutions via Bacs. The Service User keeps the original signed Instruction and sends the details to the customers’ bank electronically to validate and set-up the Instruction if accepted.
Before AUDDIS, anyone wishing to pay via Direct Debit would be required to sign a physical, paper Instruction and post it to their bank. With AUDDIS, Instructions can be set up over the phone or via the internet instead.
So AUDDIS eliminates a lot of the time, cost and effort associated with setting up Direct Debit Instructions for Service Users, their customers and the banks.
Benefits for the Service User:
- Lower set-up costs for Direct Debit Instructions
- Enables the Service User to identify invalid account information, as well as any unpaid Direct Debits, for easier reconciliation of successful payments
- Speeds up the time from a bank receiving and accepting a Direct Debit Instruction, to the collection of first payment; meaning money is received faster.
- Reduces processing delays and manual steps, resulting in a better quality of service
- Increases accuracy in identifying a Direct Debit Instruction through a mandatory reference
- Reduces the risk of error, further improving the quality of service.
Benefits for the banks:
- Reduces processing times
- Reduces the potential for error
- Minimises paperwork and manual input
- Removes paper from the banking system
- Improves the Direct Debit Scheme, making it a more attractive option to organisations and their customers.
AUDDIS reports are available to Service Users and reveal any new Direct Debit Instructions which have been rejected by BACS or by the bank.
Direct Debit Instructions can be rejected for many reasons, but most commonly, rejections are based on the cancellation of the instruction or the bank account being closed. The exact reason will be indicated to the Service User via a ‘reason code’, so it is clear what action needs to be taken.
A typical AUDDIS report will include:
- Service User Number
- Record Type
- Date of Collection
- Bacs Reference
- Account Names
- Payer’s Account Number
- Payer’s Sort Code
- Reason Code
How to start using AUDDIS in your organisation
AUDDIS is primarily aimed at Service Users collecting low value, high-volume payments, but is mandatory for all new Service Users submitting directly to Bacs.
Organisations looking to get started with AUDDIS start by submitting an application form via their bank and ensuring internal systems, such as software, can accept the new submission and messaging formats.
Approval is controlled by the banks, so potential Service Users are vetted for compliance to service standards.
Once the bank is satisfied that the Service User meets the required criteria, they will be approved to begin using the service.