- AUDDIS Migration, Bacs, Direct Debit, News
- 23, MAY 2012
AUDDIS: To Migrate or not to Migrate?
Currently, 45% of Service Users continue to operate a paper-based system of submitting their Direct Debit Instructions (DDI’s) to Bacs, i.e. they send them in the post.
Many companies however recognize the benefits of using an AUDDIS, (Automated Direct Debit Instruction Service) system. This is where Service Users submit Direct Debit Instructions to Bacs electronically. This system has the potential for lower costs, increased accuracy and reduced time, but what is the best way for an organization to move to an AUDDIS system?
There are a number of options and the best approach will be different for different companies. It will depend on factors such as the number of existing customers signed up by Direct Debit, the amount and frequency of collections, the organizational desire to progress towards a fully Paperless system, i.e. using telephone and internet sign up and the administrative resource available to support a system change. These options include:
- The company can move all of the existing Direct Debit Instructions to become AUDDIS instructions, by migrating their Service User Number. This is a typical approach and currently 6.5% of all Service Users are in the process of Testing or Migrating to AUDDIS. It is a task that can appear daunting as it requires that a number of technical and complex steps be conducted in the correct order and sequence. For most organizations it is a process they will only complete once and gaining all the necessary knowledge and skills can be a time consuming and therefore costly process. Outside help however can ensure that the process is conducted smoothly and efficiently, thereby negating these possible issues.
- The company can set up a new Service User Number which is already enabled to submit via AUDDIS and stop using their old Service User Number. This approach requires a company to contact all existing customers and request new Direct Debit Instructions, running the risk that some customers will refuse. It can be time consuming and can require system changes, however for organisations with relatively few existing customers it can be simpler to undertake than a migration.
- A company can operate 2 Service User numbers in conjunction. One SUN would be AUDDIS enabled and used for new customers and the other would be the existing non AUDDIS enabled SUN – used for existing customers. Although this could sound confusing it can be very simple in practice. All new customers are signed up using the new SUN, allowing an organisation time to develop experience of the new process. The usage of the existing SUN would reduce and die out over time which could be appropriate in some businesses, especially those with high natural customer turnover.
- Remaining on a fully paper based DDI system. Although an enforced move to using AUDDIS has been discussed, there are no current plans by Bacs to implement this.
Do you have questions about AUDDIS or AUDDIS Migration? Contact us to discuss.