ADDACS (Automated Direct Debit Amendment and Cancellation Service)
The service allowing banks/building societies to advise Direct Debit Service Users via Bacs of any amendments to, or cancellations of, Direct Debit Instructions.

Advance Notice
The notice issued to the Payer stating the date and amount of the collection.

ARUDD (Automated Return of Unpaid Direct Debits Service)
The service allowing banks/building societies to return to the service user any Direct Debit payment instructions they could not apply. The debit is returned to the Service User’s account and Bacs generates a report for the service user detailing the Direct Debit that is being returned unpaid and the reason for the return.

AUDDIS (Automated Direct Debit Instruction Service)
The service enabling Direct Debit Instructions to be lodged (set up) electronically from service users to the paying banks and building societies via Bacs.

Bacs Payment Schemes Ltd
Bacs, the not-for-profit, membership-based industry body is owned by 16 of the leading banks and building societies in the UK, Europe and US. Bacs is responsible for the schemes behind the clearing and settlement of automated payments in the UK including Direct Debit and Bacs Direct Credit.

Bacstel-IP
A service providing a highly secure access channel into Bacs. It uses internet technologies and public key infrastructure (PKI) security to allow access to Bacs payment services including payment file processing, report accessing etc. Bacstel-IP carries out some online validation of submissions.

Bulk Change Process
The rules and processes a Service User must follow when applying bulk amendments to Direct Debit Instructions (DDIs), already held with paying banks, in respect of a change of name, legal status, Service User Number (SUN) or service user reference.

Bureau
An organisation that submits transactions through Bacs on behalf of their customers. A bureau is accredited by Bacs, and undergoes inspections at regular intervals.

Collection File
SmartDebit formatted files to enable the collection of Direct Debits.

Confirmation Letter
A confirmation issued to the Payer showing the details they used to sign up to Direct Debit.

Direct Credit
The service offered by Bacs that allows originators to pay money directly into a destination account. Payments may be made on a regular basis (eg salary payments, benefit payments) or ad hoc.

Direct Debit
The collection of an agreed amount from a bank/building society account by a service user, on request. The amounts and dates may vary from payment to payment. The payment request is sent via Bacs.

Direct Debit Guarantee
The Guarantee offered by paying banks to payers in respect of the Direct Debit Scheme specifying the rights and safeguards of payers.

Direct Debit Indemnity Claim (DDIC)
Claim made by the paying bank in respect of an incorrect Direct Debit being applied to an account.

Direct Debit Instruction (DDI)
Sent by the service user to the payer’s bank/building society as the authority to pay Direct Debits from the payer’s account.

Direct Debit Mandate
Now referred to as a paper Direct Debit Instruction (DDI)

The Service User’s Guide and Rules to the Direct Debit Scheme
The rules that apply to the operation and use of the Scheme and the Bacs Service, as amended from time to time by Bacs.

Dormancy period
The time after which a bank/building society will remove details of a DDI from a payer’s account if no collections have been made in that time. The period is normally 13 months and is recorded against a Direct Debit Service User Number (SUN) on the service user’s database.

Due date
The date on which a Direct Debit payment is due to be taken. The payment can actually be taken up to, and including, 3 working days after the due date.

Facilities Management (FM)
In the context of the Direct Debit scheme, the service provided by a service user or bureau that takes responsibility for the collection or administration of Direct Debits on behalf of another institution/company that may not be a service user in its own right.

Hardware Security Module (HSM)
A hardware device used for the secure storage of Public Key Infrastructure (PKI) credentials and for automating the signing process. It can be used with Bacstel-IP to carry out automated submissions and collections.

Implementation Guide(s)
SmartDebit documentation for procedures and training on how to both implement and operate the service.

Implementation Task List
A checklist to ensure all key aspects of the implementation have been completed.

Indirect Submitter
A service user who can originate items but cannot send them to Bacs, instead uses the services of a bureau.

Legal entity
A service user must be either a legal person (natural or corporate or, in Scotland only, a partnership) or, exceptionally, a collection of persons governed by a defined legal framework (such as a partnership or unincorporated association). These are referred to as legal entities. A group of companies is not a legal entity, unless they are formally constituted as a partnership. A ‘group holding company’ will be a legal entity.

Live status
An organisation or bureau, that has successfully submitted test files and been authorised by their sponsoring bank to submit live files to Bacs.

Maximum Limit per Direct Debit
The agreed maximum Direct Debit collection amount from a payer in each month or other agreed frequency (note, applies to the SmartDebit Facilities Managed service only).

Modulus Check
An arithmetic process to determine if there is a valid link between a sort code and an account number range, i.e. whether a particular account number could exist at a specified sort code.

Originator Identification Number (OIN)
Now known as a Service User Number (SUN). A unique six-digit number allocated to a service user to enable identification with Bacs.

Payer
Person authorising the service user to collect Direct Debits from their bank account.

Payer Files
SmartDebit formatted files for new or amended payers to enable the lodgement of Direct Debit Instructions (DDI).

Paying Bank
The bank/building society at which a Direct Debit Instruction is lodged for a payer and that raises messages to advise of amendments or cancellations in relation to the Direct Debit Instruction.

Re-presentation
A Direct Debit that has been returned unpaid to the originator, being resubmitted for collection.

Service Level
The standards by which the bureau services are to be provided.

Service User
A company, group of companies, charity etc. that is sponsored to use one or more Bacs service.

Service User Number (SUN)
A unique six-digit number allocated to a service user to enable identification with Bacs.

SmartDebit Admin®
The online administration service to enable SmartDebit customers to both sign up payers and administer Direct Debits and payer records.

SmartDebit API® (Application Programme Interface)
An integrated seamless interface to Direct Debit Instruction sign-up and administration of editing, issuing collection amounts and receipt of Bacs reports.

SmartDebit Direct®
A simple-to-use, secure and powerful Direct Debit and Credits Bacs File Submission solution. The SmartDebit Direct service allows our customers to upload, validate and submit files to Bacs, including the option for two-stage authorisation of files.

SmartDebit Online®
Online payer sign-up service to enable Direct Debit Instruction sign-up. Facilitated by hosted pages or API.

Sponsor
Any financial institution that can authorise service users to use Bacs. May also be referred to as the sponsoring bank.

Testing
SmartDebit procedures for ensuring that both the payer and Charge File structure are correct, resulting in the set-up process being completed.

Unpaid Direct Debit
A Direct Debit that is returned to the service user as the funds could not be collected from the destination account, e.g. insufficient funds, or no DDI set up on the account. Also see ARUDD.

Validation
Software integrated into SmartDebit software, used to validate sort codes and account numbers in real time.

Working days
Working days are defined as English bank working days excluding Saturdays, Sundays and Bank Holidays.