Glossary
ADDACS – Automated Direct Debit Amendment and Cancellation Service. The automated system used by Banks and Building Societies to advise the Originator of amendments / cancellations of a DDI, either electronically or in paper form. The AUDDIS scheme also uses this message passing capability for communicating details of returned AUDDIS DDIs to Originators from the Paying Banks.
APACS – The Association for Payment Clearing Services.
The umbrella body for the UK payments industry. Three autonomous clearing companies operate under the umbrella of APACS - BACS, CHAPS Clearing Company and the Cheque and Credit Clearing Company.
ARUCS – Automated Return of Unapplied Credits. A mechanism by which Paying Banks return unapplied credits to the Originator via BACS. Usually occurs if the beneficiary has closed the bank account, moved away, deceased etc. Because the Bank cannot find an account to credit the funds with, it sends it back to the Originator with a reason why.
AWACS – Advice of Wrong Account for Automated Credits Service. Items quoting incorrect bank branch sorting code details are passed to the receiving bank who apply the payment to the correct account. The receiving bank advises the Originator of the change electronically via BACS. BACS then distributes the details to the Originator on a single list. The service also enables BACS to re-route items immediately to a different bank for major customers who have moved their account. BACS produce and dispatch an advice to the Originator giving the original and amended details.
ARUDD – The Automated Return of Unpaid Direct Debits service.
The automated system used by the Banks to return unpaid Direct Debit payments. Unpaid Direct Debits are advised to the Originator by BACS using the Automated Return of Unpaid Direct Debit report (ARUDD).
AUDDIS – The Automated Direct Debit Instruction Service. This automates the setting up of Direct Debit Instructions between Originators and the Paying Banks. This is done by sending a file of new instructions via BACSTEL IP using special transaction codes to tell the paying bank that this is a new Direct Debit being set up.
BACS – Owned by the leading banks and building societies in the UK and Europe is responsible for the clearing and settlement of automated payments in UK and for maintaining the integrity of payment related services.
BACSTEL-iP – A completely new way of accessing the BACS payment services. Based on Internet Protocols, it uses the latest PKI (Public Key Infrastructure) technologies to ensure high level of security. By accessing BACS payment services via BACSTEL-IP, organizations are now able to monitor payment status, receive a wider range of reports and maintain them - all online.
BACS Processing Cycle – The BACS cycle comprises 3 bank working days - Input Day, Processing Day and Entry Day. Files are transmitted on Input Day to BACS and can be sent up to 31 days before processing day. The Entry Day, the day the account is debited or credited is always one working day after Processing Day.
Direct Debit
An agreed amount collected from a customer's Bank / Building Society account by an Originator on request. The amounts and dates may vary from payment to payment, subject to advance notice being given.
Direct Credit / BACS Payments
Direct Credit is the means by which an organisation can transfer funds electronically, directly into a specified Bank or Building Society to make payments to accounts of individuals or companies.
Direct Debit Guarantee
The guarantee offered by the Paying Banks to payers in respect of the Direct Debit Scheme specifying their rights/safeguards.
DDI – The Direct Debit Instruction
This is the authority signed by the customer allowing the Originator to collect Direct Debit payments from the customer's account. In this specification the term DDI is used to refer to both the paper Direct Debit Instruction and the electronic messages used to set up and cancel a Direct Debit Instruction at the Paying Bank.
Modulus Checking
A method used by financial institutions to allocate and verify account numbers using a mathematical calculation in conjunction with a sorting code. Its aim is to spot any data input errors.
OIN – Originator's Identification Number
This is the unique number given to participants who are authorised to use the Direct Debit Scheme. An OIN is synonymous with a BACS User Number.
This is also referred to as Service User Number (SUN)
Originator
This is the organisation 'originating' requests for collection by Direct Debit payments.
Paperless Direct Debit (PDD)
Paperless Direct Debit allows Originators to sign-up customers to Direct Debit, or varies their existing instructions, without sending out paper DDIs to customers for signature. Instructions can be taken over the telephone, Internet or face-to-face.
Payer
The person who, by signing a DDI, has given authority for his account to be debited by the Originator using the scheme.
ISCD – Industry Sort Code Directory
This is a register of valid BACS sort codes maintained by the Paying Banks. This information may be held by Originators to check a Payer's Bank branch sort code. It is now known as the Industry Sorting Code Directory - ISCD for short. APT offers banking data validation software: click here for Validata.
Sponsor /Sponsoring Bank
BACS Member authorising Users and Bureau to submit data for processing. Though the term Sponsoring Bank is often used, this actually refers to banks and building societies.
Transaction Codes
A set of two character codes used throughout the UK clearings that define the type of payment. In the context of Direct Debit there are a number of codes for DDs already in use. AUDDIS requires three transaction codes for AUDDIS DDI messages. Here are all the codes:
These are:
Paperless Direct Debit allows Originators to sign-up customers to Direct Debit, or varies their existing instructions, without sending out paper DDIs to customers for signature. Instructions can be taken over the telephone, Internet or face-to-face.
Payer
The person who, by signing a DDI, has given authority for his account to be debited by the Originator using the scheme.
ISCD – Industry Sort Code Directory
This is a register of valid BACS sort codes maintained by the Paying Banks. This information may be held by Originators to check a Payer's Bank branch sort code. It is now known as the Industry Sorting Code Directory - ISCD for short. APT offers banking data validation software: click here for Validata.
Sponsor /Sponsoring Bank
BACS Member authorising Users and Bureau to submit data for processing. Though the term Sponsoring Bank is often used, this actually refers to banks and building societies.
Transaction Codes
A set of two character codes used throughout the UK clearings that define the type of payment. In the context of Direct Debit there are a number of codes for DDs already in use. AUDDIS requires three transaction codes for AUDDIS DDI messages. Here are all the codes:
These are:
01 |
– |
first collection of a Direct Debit |
17 |
– |
standard Direct Debit collection |
18 |
– |
re-presented Direct Debit |
19 |
– |
final collection of a Direct Debit (e.g. last payment of loan) |
0N |
– |
new DDI |
0C |
– |
cancellation of an existing DDI |
0S |
– |
existing manually set-up DDI being converted to AUDDIS specification |
99 |
– |
Direct Credit payment VOCA |