What is AUDDIS?

In the payments and banking industry, there are a wide variety of acronyms and abbreviations that may confuse some people, such as RTI, BACS, CHAPS and much more. There is another too, called AUDDIS, that is important in the Direct Debit sector of the payments industry. So, what is AUDDIS and what does it mean?

AUDDIS meaning

AUDDIS stands for Automated Direct Debit Instruction Service and its primary purpose is to enable companies to send new Direct Debit instructions to their customers’ payment service provider (PSP). This is sent electronically and is mandatory for all new service users that submit directly to BACS.

Using AUDDIS, the company collecting the Direct Debit keeps the original signed instruction. Once the electronically-sent instruction has been accepted, they can upload it to their database. However, if they’re completely paperless, all sign-ups can be done electronically and no paper or signature is required.

A great advantage of using the Automated Direct Debit Instruction Service is that by automating the exchange of Direct Debit instructions between a company and customers’ payment service provider reduces manual processing, which leads to fewer errors. As such, Direct Debit instructions are processed much faster, more efficiently and eliminate the need for the details to be re-entered into a database.

Also, service users who wish to use the Paperless Direct Debit service must become AUDDIS compliant first.

Benefits of AUDDIS

Given the fast and efficient nature of the AUDDIS system, there are many benefits to using it for both the bank and service provider.

The benefits for the bank are:

• Reduces processing time and the potential for human error.
• Minimises paperwork and manual entry.
• Helps the banking system become more paperless.
• Improves the Direct Debit scheme.

The benefits to the service provider are clear too, and they are:

• 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 the first payment, meaning money is received faster.
• Reduces processing delays, manual steps and human error, resulting in better service.
• Increases accuracy in identifying a Direct Debit instruction through a mandatory reference.

What is an AUDDIS report?

AUDDIS reports are available to service users and contain a wealth of information regarding Direct Debit instructions, customer details and which ones have been rejected by Bacs or the bank.

A typical AUDDIS report contains information on the following:

• Service User Number (SUN)
• Record type
• Date of collection
• Bacs reference
• Account names
• Payer’s account number
• Payer’s sort code
• Reason code

Can a Direct Debit instruction be rejected?

Yes, Direct Debit instructions can be rejected either by Bacs or by the bank or building society. The most common reason for rejection is because the bank account is closed. However, the exact reason is indicated to the service user via the reason code in the AUDDIS report.

Interbacs’ Direct Debit Management System

Interbacs’ Direct Debit Management System (DDMS) makes it easy to edit, cancel and create new Direct Debits.

Our powerful Direct Debit management software is a full Direct Debit suite, which 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 this Direct Debit management solution validate customer data and bank account details according to Bacs regulations, but it also enables you to create and edit payment plans with ease.

If this sounds like something you’d be interested in, contact us today on 0161 667 0758 or email us at sales@interbacs.com.