- Bacs Reports
- ADDACS, AUDDIS, Bacs, Direct Debit, Reports
- 14, JUN 2019
What You Need to Know about BACS Direct Debit Reports
Bacs produces a series of reports that highlight errors and anomalies and that help Service Users manage their Direct Debit collections. As a Service User you have a responsibility to take action to correct the faults these Bacs reports bring to light – but more than that, it’s in your interests to do so. The Bacs Direct Debit reports contain vital information to help ensure you operate a successful Direct Debit payment scheme.
What Bacs Reports are Available?
The following are all Bacs advice reports that you should be accessing and using:
We’ll explain below what you need to know about each of these reports.
How do I access my Bacs reports?
Your Bacs reports are generated at a Service User Number level and they can be downloaded from the Payment Services website. To do this you need to log in (either with a smart card and PIN, or username and password), identify which reports you wish to access, and then download them. Alternatively, you can download the reports (either all at once or individually) through your Bacs software. If you are working with a specialist Direct Debit bureau, such as Clear Direct Debit, they can do this for you, as well as providing expert Bacs advice.
How do the Bacs reports work?
Bacs reports are either generated when you, the Service User, undertake an action, such as submitting a collection file, or when a customer undertakes an action, such as changing their bank account. Because you can’t predict when a customer will undertake an action that affects you, Bacs collates the relevant information and provides it to you in a report. You can receive reports on any working day of the year.
Generally, these reports work by exception – that is, they only inform you of actions that were unsuccessful or things that have changed.
Let’s look at each Direct Debit report in turn.
The AUDDIS report – Automated Direct Debit Instruction Service
The Bacs report usually referred to as the AUDDIS report is also called the Advice of Bank Returned Direct Debit Instructions.
There are three record types included:
D: Advises return of a code 0C, which is a cancelled DDI (Direct Debit Instruction)
N: Advises return of a code 0N, which is a new or reinstated DDI
S: Advises return of a code 0S, which is a converted DDI
The most common type is “N”. These are new DDIs which have been submitted by the Service User for lodgement but have been rejected, either by Bacs or by the Payer/customer’s bank. There could be a number of reasons for a transaction to be rejected – for example, the cancellation of the instruction or the bank account being closed. The reason will be indicated using a reason code, so it is clear what corrective action needs to be taken. For example, if the DDI has been rejected due to “Incorrect Payer’s account details” (reason code L), you will need to get in touch with the customer and ask for the correct bank details. A more complete list of AUDDIS reason codes is available here.
If you don’t access these Bacs reports, you won’t be aware of which DDIs have failed to lodge; and if you don’t take corrective action to resolve the issues they highlight, you might attempt a collection where there is no valid instruction held.
The ARUDD report – Advice of Returned Unpaid Direct Debi
If a Direct Debit collection cannot be completed, it will appear in an ARUDD report. As with AUDDIS reports, you will be given a reason code indicating why the collection could not be completed. Based on this, you will be able to take appropriate action. One point to note with ARUDD reports is the “Refer to Payer” reason code. This is used when the paying bank cannot provide the specific reason the payment could not be completed. “Refer to Payer” can mean that there were insufficient funds in the relevant account – but this should not be assumed to be the case, and you will need to conduct further investigations to identify the specific reason in this instance.
The consequences of not actioning these reports are simple – you don’t collect one or more Direct Debit payments, won’t necessarily be able to identify which transaction failed, won’t know why it failed, and won’t know what action to take to ensure you subsequently can make the collection.
The ADDACS report – Advice of a Direct Debit Amendment and Cancellation Service
DDIs that have been set up successfully are open to change; for example, the Payer may switch their bank account to another provider. The ADDACS report advises Service Users of changes made to existing DDIs. These should be acted upon within 3 working days of receipt, and the sooner the better. It’s in your best interests to act quickly on receipt of an ADDACS report from Bacs, otherwise, you risk making incorrect collections and so facing indemnity claims, loss of revenue, and reputational damage.
The DDICA report – Direct Debit Indemnity Claim Advice
If there’s one report that no Service User wants to receive, it’s the DDICA report, which contains details of Direct Debit indemnity claims that have been raised. You can find more information about indemnity claims here.
Unless you have experience of handling such claims, we would advise you to take Bacs advice from a specialist Direct Debit company such as Clear Direct Debit, who will be able to provide you with guidance on how best to respond.
The Bacs reports described above all refer to Direct Debits. Those using the Bacs Direct Credit service should also be accessing their Direct Credit reports.
If you need Bacs advice with regard to any of the above reports, please see elsewhere on our website for more information, or contact us for expert guidance on the way forward. If your team would benefit from specialist training, check out our range of training offerings to see how we can help.