AUDDIS stands for Automated Direct Debit Instruction Service.
From January 2008, any new organisation establishing a Direct Debit system has had to use the AUDDIS method of lodging Direct Debit Instructions. Service Users who were established prior to this date may still be using a paper based system. Once AUDDIS has been introduced, any Direct Debits collected under the AUDDIS Service User Number, must be lodged via AUDDIS and not by paper based methods.
How does AUDDIS work?
AUDDIS automates the lodgement of Direct Debit Instructions (DDI’s) from the service user to the paying bank. The paying banks validate the DDIs, either accepting them or returning them to the service user. If the DDIs are rejected the paying bank will advise the service user electronically via Bacs in the ‘AUDDIS report’. The paper DDI remains with the service user and it is up to the service user to decide how long to retain the paper DDI.
The Benefits of AUDDIS
There are numerous benefits to using AUDDIS. These include:
- lower costs associated with processing (reduced paper and postage),
- increased accuracy, i.e no handwriting to decipher,
- earlier warning, (before collection), of Direct Debits that have not been set up,
- reduced errors due to modulus checking, (pre submission),
- quicker processing time – reduced from 14 to between 2-5 days,
- easier administration,
- improved customer service
- possibility to then introduce a paperless sign up system (Paperless Direct Debit is only possible if the Service user first operates on AUDDIS).
There are some additional rules / considerations when moving to AUDDIS. These include the following:
- It becomes much more important to have copies of the instructions to hand in case you need to prove you have the payer’s authority.
- You will also need to ensure you ‘know your customer’ (KYC) as the banks are no longer checking the signatures for you.
- There are some new transaction codes and a new file that you will need to be able to generate.
Moving to AUDDIS
If your organisation currently sends all Direct Debit Instructions by post then you have a number of options:
- move all existing Direct Debit Instructions to become AUDDIS instructions, by migrating the service user number.
- replace your existing service user number with a new AUDDIS enabled service user number.
- operate 2 service user numbers in parallel. One would be the current non-AUDDIS enabled number and the other would be AUDDIS enabled.
The process of moving your existing SUN to AUDDIS will require you to go through a number of steps, including:
- Application – via your sponsoring bank.
- Preparation – this may involve upgrading or procuring additional software
- Testing – to demonstrate to Bacs and to your sponsoring bank that you are able to correctly submit AUDDIS files
- Go Live – the final process of Migrating your existing Direct Debit Instructions using the 0S transaction code. This will convert your existing Direct Debit Instructions to AUDDIS. You will no longer be able to submit manual (paper) instructions once your Service User Number has been migrated.
How long should it take to implement an AUDDIS system?
You should allow approximately one month to obtain a new AUDDIS enabled service user number and approximately four months to migrate your existing service user number – assuming that the process is handled efficiently!