Frequently Asked Questions
Here are some of our most frequently asked questions. We update these regularly so keep checking back for more information. If you have a question that is not answered here please contact us and we will be happy to help.
If the payer has cancelled the DIrect Debit by mistake then they can re-instate the Direct Debit, they just need to get in touch with their bank to authorise the re-instatement . Once this has happened you will usually be notified of this with a reason code R on your ADDACS report. You may re-instate a cancelled Direct Debit Instruction up to two months from cancellation. This means that you may resume Direct Debiting under the re-instated instruction, however a new DDI must be obtained and lodged if the re-instatement is identified after the two month period.
If a payer cancels a Direct Debit with their bank you will receive notification on an ADDACS report (Automated Amendment & Cancellation report). Service users must cancel the Direct Debit on their CRM and then liaise with the payer to agree the payment method for the collection of any outstanding balance. Remember, the ability to cancel is a vital part of the Direct Debit Guarantee which supports customer confidence in the Direct Debit scheme.
The rules say “a copy” of the Direct Debit Instruction will be sufficient and so a scanned copy is all that is required should you ever need to produce one for a paying bank.
A Direct Debit is an instruction from a customer to their bank or building society authorising an organisation to collect varying financial amounts from their account.
There are all sorts of reasons why many organisations would see Direct Debit as the most reliable, efficient and cost effective way to collect payments; there are many advantages to consumers too. More details on these reasons can be found on our page Why Direct Debit?
There are a couple of things that an organisation needs to think about and it all depends how you are looking to use the scheme. The good news is, if you implement the scheme well and understand it’s rules and guidelines, then there is very little to worry about.
As with most things in life there are a number of options, your bank is usually the best place to start. You can apply to collect Direct Debits directly or you may choose to involve a third party to help you. It will depend on your business and your customers as to what works best for you. We can help with Direct Debit collections, please contact us for more details.
Our “Clear” Direct Debit Training course covers all of the rules and guidelines that you need to comply with. It also gives valuable insight into how to maximise the opportunities that Direct Debit presents. Full details are on our training page.
AUDDIS is the Automated Direct Debit Instruction Service – it’s the easiest and quickest way to set up a new Direct Debit customer. For all new companies looking to collect by Direct Debit, this is now the mandatory way to send your new Direct Debit Instructions to Bacs unless using a 3rd party to make your collections.
PDD stands for Paperless Direct Debit. PDD allows you to sign up new customers without getting them to fill out a paper form. This makes it ideal for any organisation that wants to take full advantage of the internet or sign people up through telephone contact. There are different rules that will apply to companies that would like to use this method of sign up. Please contact us for more information.
If you have any additional questions about the Direct Debit scheme or our services please complete the form below and we will quickly respond with a direct answer.
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