The Beginners Guide: Direct Debit Glossary

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The Beginners Guide: Direct Debit Glossary Guide
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Your Glossary to Direct Debit Terms

To the uninitiated, the world of Direct Debits can be somewhat of a minefield. From a linguistic standpoint, many of the term associated with Direct Debit can themselves be somewhat of a turnoff. This guide is meant to help you through some of the terms that you may encounter.

ADDACS MESSAGES

Otherwise known as Automated Direct Debit Amendment and Cancellation messages. These messages are meant to notify Service Users of any customer amendments or cancellations.

ADVANCE NOTICE

The required notice given to customer of each payment or future payment before it leaves the account.

ARUDD MESSAGES

Otherwise known as Automated Return of Unpaid Direct Debits messages, these notify Service Users of any unpaid Direct Debits.

AUDDIS MESSAGES

Otherwise known as Automated Direct Debit Instruction Service messages, these notify Service Users of issues setting up or cancelling a Direct Debit Instruction.

BACS

Otherwise known as Bankers’ Automated Clearing Services, this is the process through which ALL Direct Debit communications go through.

BACSTEL-IP

A secure service for communication between Service Users and Bacs. Internet-based and provided by Bacs.

BUREAU

Like London & Zurich, an organisation that submits Direct Debit requests on behalf of a third party, in this case our customers. This is regardless of whether the third party has their own Service User Number.

CHARGE BACK

A refunded payment made to the payer after claims made under the Direct Debit Guarantee. The refund is paid immediately.

COUNTER CLAIM

Used by Service Users to dispute charge backs from customers.

DDICA MESSAGES

Otherwise known as Direct Debit Instruction Cancellation and Amendment messages, these notify Service Users of charge back from their customers.

DIRECT DEBIT GUARANTEE

The overarching guarantee given on all Direct Debit payments.

DIRECT DEBIT INSTRUCTION

The authorisation needed by customers for you to collect future payments automatically.

DIRECT DEBIT INSTRUCTION FORM

The form that must be completed to authorise a Direct Debit Instruction.

DIRECT MANDATE

Another name for Direct Debit Instruction.

DUE DATE

Fairly self explanatory, the date a payment is expected to be debited from a payer’s account.

FACILITIES MANAGEMENT

When a Bureau submits payments to Bacs on your behalf under a Service User Number they own but lease to you.

IDEMNITY CLAIM

This claim is made by a paying bank to recover charged back payments from Service Users.

INPUT FILE

A standardised file, submitted to Bacs by Service Users to lodge new Instructions and payment requests.

INPUT REPORT

The report received when Service Users submit payments or DDIs to Bacs.

MANAGED ADMINISTRATION

This refers to a Bureau submitting payments to Bacs on your behalf, using your own Service Number.

PAPERLESS DIRECT DEBIT

Authorising a Direct Debit Instruction via phone or online, thus without the use of a paper form.

PAYING BANK

The bank or building society at which a customer’s DDI is located.

SEPA DIRECT DEBIT

A single Direct Debit Scheme applying across the whole Single European Payments Area.

SERVICE USER

An organisation approved by a sponsor bank to submit Direct Debit requests to Bacs.

SERVICE USER NUMBER

An individual number uniquely issued to every Service User.

SPONSOR BANK

The bank that allows you to begin on the Direct Debit Scheme and ultimately award you with your Service User Number.

UNPAID DIRECT DEBITS

Unpaid payments refer to payments which could not be collected from a customers account. This can be due to a number of mitigating circumstances, including lack of funds.

WORKING DAYS

Days of the week excluding weekends and bank holidays. Working days are the only days on which a Bacs submission can occur.

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