Aug 29, 2017
What is AUDDIS and what are its advantages?
AUDDIS (Automated Direct Debit Instruction Service) is the Bacs service enabling your organisation to set up new Direct Debit Instructions (DDIs) to your payers’ banks electronically. Since 2008, all new organisations who collect Direct Debit have had to use AUDDIS, but many organisations may still have a paper-based system in place, therefore, restricting their Direct Debit collection process.
What are the advantages of using AUDDIS?
AUDDIS automates the transfer of DDIs between your organisation and the bank. All parties (Service User, consumer and bank) using Direct Debit benefit from this service.
- Increases efficiency of the Direct Debit service.
Service User advantages:
- Decreases handwriting and set-up costs for DDIs, such as postage
- Allows the Service User to identify invalid account information, as well as any unpaid Direct Debits, for easier reconciliation of successful payments
- Reduces the time between lodgement, when the bank receives and accepts the DDI, and the collection of the first payment
- Reduces processing delays and manual steps, resulting in a better quality of service
- Increases accuracy in identifying a DDI through a mandatory reference
- Streamlines DDI processing
- Reduces potential for repeating errors, further improving the quality of service.
- Reduces processing time
- Reduces the potential for error
- Minimises paperwork and manual input
- Takes paper out of the banking system – making it now the accepted standard throughout the banking industry.
What does an AUDDIS report include?
Your Direct Debit service provider should notify you of any AUDDIS reports. A typical report would include:
- Your Service User Number
- Record Type
- Date of Collection
- Bacs Reference
- Account Names
- Payer’s Account Number
- Payer’s Sort Code
- Reason Code
The most common reason codes are:
- Reason Code 1: Instruction cancelled by payer
- Reason Code 6: No Instruction
- Reason Code 3: Account transferred to another bank/building society
For detailed information about reason codes, visit our AUDDIS reason codes guide.