- Knowledge Centre
- Direct Debits - Getting Started
Direct Debits - Getting Started
- A Direct Debit is an instruction from a consumer or business
(payer) to their bank, authorising an organisation (payee) to
regularly collect money directly from the payer's account at
intervals within a specified timescale.
- By setting up a DD, both the payer and the payee are able to
automate that payment/collection cycle, saving considerable time
and money on both sides.
- Organisations wishing to use the Direct Debit Scheme must go
through a careful vetting process before they're authorised -
including full audits and investigations into the company's
collecting Direct Debits with eCollect »
Becoming a Direct Debit Originator
- To become a Direct Debit originator, you should first seek
sponsorship from your bank. This approval is far from guaranteed
and involves a stringent auditing process - which could take up to
- The master database of customer and payment data is normally
stored in an accounts package, CRM system or even an Excel
- Unless your database is AUDDIS compliant you will need a system
(such as eCollect)
that can accommodate the necessary day-to-day DD operations.
- Once created by your accounts or DD management solution, the
payment file will need to be sent to Bacs via a specialist
transmission tool (such as ePay). Prior to submission, the
contents of the file are checked to make sure there are no sort
code or account number errors.
Direct Debit data with eCollect »
Automated Direct Debit Instruction Service (AUDDIS)
- The AUDDIS system enables organisations to send new Direct
Debit Instructions (DDIs) to their customers' banks electronically
- and instantaneously - rather than by sending a paper
- Using AUDDIS has a number of benefits including a reduction in
manual processing and paper consumption, improved staff efficiency
and cash flow.
- As of 1st January 2008, all DDIs sent by new service users
submitting directly to Bacs must use AUDDIS.
advantage of AUDDIS compliancy with eCollect »