Common Direct Debit error messages

Direct Debits are renowned for being easy to manage. Only in around 1% of cases does a payment fail. Nonetheless, it’s still important to keep track of failures and changes to Direct Debit Instructions.

Bacs will send Direct Debit handlers reports detailing the status of payments post collection, as well as making daily reports available from 6am onwards. A series of codes will give you the information you need as to why a payment has failed or changed. These fall into the following categories:

 

Direct Debit Instructions notifications

  • Automated Direct Debit Instruction Service (AUDDIS) – AUDDIS notifications relate to issues surrounding the setup process as well as cancellations initiated by the seller.
  • Automatic Direct Debit Amendment and Cancellation Service (ADDACS) – these messages provide information on Direct Debit changes or cancellations initiated by the customer.

Payment request notifications

  • Automatic Return of Unpaid Direct Debits (ARUDD) – you will receive an ARUDD message when a payment fails.
  • Direct Debit Indemnity Claims Advice (DDICA) – DDICA notifications take place when a customer raises an indemnity claim against you. This will be for one of three reasons:
    • The customer denies all knowledge of setting up a mandate.
    • A payment has been collected after a mandate has been cancelled.
    • There are problems with a specific payment collection.

 

Direct Debit Instructions notifications

AUDDIS notifications

Errors in bank account details provided by customer

Code                                 Bacs explanation
2 Payer deceased
3 Account transferred
5 No account
B Account closed
C Account transferred
L Incorrect payer’s account details

 

Further errors in submission or Direct Debit Instruction

7 Direct Debit Instruction amount not zero
I Payer reference is not unique
M Transaction code/user status incompatible
O Invalid reference
P Payer’s name not present
Q Service user’s name blank

 

Unable to setup Direct Debit Instructions on account

F Invalid account type
G Bank will not accept Direct Debits on account
N Transaction disallowed at payer’s branch

 

Errors cancelling a Direct Debit Instruction

1 Instruction cancelled by payer
6 No instruction
H Instruction has expired
K Instruction cancelled by paying bank

 

ADDACS notifications

Direct Debit Instruction cancelled

0 Instruction cancelled – refer to payer
1 Instruction cancelled by payer
2 Payer deceased
B Account closed
D Advance notice disputed

 

Direct Debit Instruction altered

3 Account transferred to a new bank or building society (collection suspended)
C Account transferred to a new bank or building society (DDI transferred without any issues)
E Instruction amended
R Instruction re-instated

 

Payment request notifications

ARUDD notifications

Insufficient funds                  

0 Refer to payer

 

Mandate failure

1 Instruction cancelled
2 Payer deceased
3 Account transferred
5 No account (or wrong account type)
6 No instruction
B Account closed

 

Payment request submission mistakes

8 Amount not yet due
9 Presentation overdue
A Service user differs

 

Customer disputes payment

4 Advance Notice disputed
7 Amount differs

 

Get in touch with Debit Finance for any further questions you may have surrounding the Direct Debit process. Alternatively, leave them to collect your Direct Debits whilst you concentrate on running – and growing – your business.

Why do businesses choose Direct Debit?

More and more people are using Direct Debit to make their regular payments to a company. The Direct Debit payment process is time and money saving for customers, but it’s equally convenient for businesses, not least because their customer’s love it.

Whether you’re talking your bottom line, customer service or streamlining your processes, Direct Debit is a worthwhile strategy to consider. We’ll name just a few of the main benefits below.

 

Declutter your administration process

Running a company can be exhausting, particularly when you don’t have a handle on incoming payments. Your struggles will end with Direct Debit as this payment method supports your company’s cash flow and encourages payment flexibility. It’s easy to track incoming and outgoing payments because you’re in control.

 

Reward your customers

Direct Debit is the cheapest payment method available in the UK. Many organisations, particularly leisure facilities and retail, channel this into member discounts.  Special offers and incentives for people signing up by Direct Debit will make your business even more attractive to prospects and fend off local competition.

 

Easy marketing

Discounts and incentives aren’t the only way to prick the ears of potential customers. Online joining portals, like DFC’s FastDD, are available 24/7 and easily accessible, whether it’s during morning commutes or sitting back on one’s smartphone. This can be promoted across numerous channels, be it digital or printed collateral, encouraging people to sign up at their convenience.

 

Doing your bit for the planet         

Corporate social responsibility is a buzzword that doesn’t look set to lose popularity anytime soon. Thankfully, paperless Direct Debits allow you to get customers started without you having to think about paper, printing, and storage. This is beneficial to you as it is to your customers and it’s great news for the environment!

 

 

DFC provides revenue management solutions tailored to the needs of your company and clients. You can leave us to collect your Direct Debit’s whilst you concentrate on running – and growing – your business.

We do more customer service

Customer service may not be the backbone of the economy, but it’s certainly the brain. We all set our expectations high in this department and take offence when it’s not met. After all, would you continue giving your hard earned money to an organisation that didn’t treat you with respect? That’s why, at DFC, we do more to go the extra mile for our clients and their customers.

A more tailored approach

It’s our job to provide a seamless operation that works in synergy with yours to maximise income, streamline administration and give you a competitive advantage.

Every organisation is different. That’s why we offer a bespoke service tailored to your services and clients. Our fully managed service (FMS) handles all the hard work of collecting Direct Debits for you so that you can focus on your core business.

Our FMS takes the onus of organisations in areas such as collection and credit control. We also go out of our way to integrate with your CRM system. If it’s a system we haven’t previously encountered, we’re more than happy to go the extra mile to include it.

“DFC is meticulous to detail and customer service is second to none, not to mention the expertise and advice they offer our management team at all levels.” – Mike Lyons, BH Live

You will always find us working hard to provide the next big solution or innovation to make the lives of our clients easier.

Working for your customers

Around providing you with excellent customer service, we’re also doing the same for your customers. It’s important that we make the payment process as simple as possible for them. As such, we’ve opened up more payment avenues than ever before to ensure that there’s always someone on hand to handle your customers’ queries.

We’ve recently expanded our call centres hours to include Saturdays for those that simply don’t have time to get in touch during the working week. Our Direct Debit experts are busy listening to thousands of requests a day so that your busy staff don’t have to. DFC’s friendly team are as knowledgeable as they are helpful.

Our online joining portal is also easily accessible across a range of devices. This allows your customers to sign up to direct debits quickly and at their convenience. It can be easily integrated into your site and app, acting as a 24-hour sales aid.
If you’re interested in our services, get in touch now on 01908 422026 or drop us a message on our contact form.