When Direct Debit was first introduced in the UK in the 1960s, it was an expensive, time-consuming...
What is ARUDD? All your questions about ARUDD answered
Direct Debits allow you to take regular payments from your customers, which can have a hugely beneficial impact on your company’s cash flow. However, sometimes payments can fail for a variety of different reasons. In this blog, Interbacs highlights some of the most common reasons that Direct Debits fail and explains how our Direct Debit Management System (DDMS) can help you to avoid missed payments with consummate ease.
What is ARUDD?
ARUDD stands for the ‘Automated Return of Unpaid Direct Debits Service’. It is the automated system used by the banks to report unpaid Direct Debit payments. When a payment fails, an ARUDD report is automatically generated, which lists any failed payments and the corresponding reason codes for the failures. The ARUDD report listing any unpaids is made available via the Bacs Payment Services website, as well as through our BACS approved software.
Common ARUDD reason codes
There are 12 main ARUDD reason codes, most of which are thankfully quite rare. However, Interbacs has compiled some of the more recurring reason codes to explain what they mean and provide some insights into how to either resolve them or – better still – prevent them from ever happening in the first place.
0 – Refer to payer
This reason code typically means that a customer has insufficient funds in their account and is the most common reason for payments failing. This type of situation can be resolved by simply arranging to retry the payment with your customer, checking that the funds are in place to avoid any bank charges. You can avoid this scenario altogether by enabling customers to choose a convenient payment date for them. Our software and services can be configured to recollect any of these bounced payments and it can automatically send an email to let them know what date that will be happening.
1 – Instruction cancelled
When a customer decides to cancel their Direct Debit through their bank, you will be notified via the Automated Direct Debit Amendment and Cancellation Service (ADDACS). When the ADDACS is not processed in time due to a payment being in flight within the banking system, this is what causes an ARUDD code 1 instruction to be cancelled. You cannot recollect this type of ARUDD.
You should instead contact the payer to ask why they cancelled the Direct Debit. We can also configure our systems to send automated emails asking this question. You can avoid this situation by checking your reports regularly and immediately applying cancellations. Simply get in touch with us today and we can help with this.
Direct Debit needn’t be taxing
Interbacs’ Direct Debit Management System (DDMS) makes it easy to edit, cancel and create new Direct Debits. This powerful Direct Debit management software gives you a full Direct Debit suite at your disposal. That means fewer manual tasks and more automated payment services. Data is imported for processing and then converted into the most applicable format for your systems.
Our cutting-edge DDMS software makes Direct Debit mandate management an altogether simpler affair. Not only does our Direct Debit Management System validate customer data and bank account details according to Bacs regulations, but it also enables you to create and edit payment plans with ease. So you can eradicate payment failures and those dreaded ARUDD reason codes for good!
ARUDD with Interbacs
Our system allows you to download all the ARUDD data directly within and is fully configurable so you can decide what to do about it. It also has a range of preconfigured actions and emails available.
With our system, you can set ARUDD code zeros to send an email informing the customer that their payment will be collected in 5 days time. Also, if a payer changes their bank details, you can automate confirmation emails to be sent. All of the codes come pre configured but all can be altered to suit your business needs.
Save time and money with reliable, professional, and innovative payment solutions and services from Interbacs. For more information about our Direct Debit Management System (DDMS), or any of our products and services, please contact us on 08444 127 180.