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Term Meaning
ADDACS – AUTOMATED DIRECT DEBIT AMENDMENT AND CANCELLATION SERVICE The Bacs service allowing banks or building societies to advise Direct Debit service users of any amendments to or cancellations of Direct Debit Instructions (DDIs).
ADVANCE NOTICE This is a communication that service users must provide to payers before they collect a Direct Debit. It should specify the date and amount a service user wants to collect and should be sent 10 working days (plus postal time) in advance of the collection.
APPLICATION PROGRAMMING INTERFACE (API) An API is a particular set of rules and specifications that a software program can follow to access and make use of the services and resources provided by another particular software program that implements that API.
ARUCS – AUTOMATED RETURN OF UNAPPLIED CREDITS This is a Bacs mechanism that paying banks use to return unapplied credits to service users. The ARUCS reports detail credits that Bacs has rejected.
ARUDD – AUTOMATED RETURN OF UNPAID DIRECT DEBITS This service advises service users of unpaid Direct Debit payments in an Advice of Unpaid Direct Debit (ARUDD) report.
AUDDIS – THE AUTOMATED DIRECT DEBIT INSTRUCTION SERVICE This is Bacs’ system for electronically lodging Direct Debit Instructions (DDIs).
AUDDIS MIGRATION This is the process service users go through when they transfer non-AUDDIS Direct Debit Instructions (DDIs) to AUDDIS, allowing new DDIs to be set up electronically.
AWACS – ADVICE OF WRONG ACCOUNT FOR AUTOMATED CREDITS SERVICE This is the automated system banks use to notify service users that they have used incorrect account details for a Bacs Credit. It also provides service users with correct account details for future payments.
BAB - BACS APPROVED BUREAU This is a commercial bureau that Bacs has approved, to undertake the processing and or management of payers on behalf of a Service User.
BACS A not-for-profit industry body that governs several payments schemes in the UK, such as Direct Debit and Direct Credit. It comprises 15 member banks and oversees more than five billion payments a year.
BACS CYCLE The time taken to submit, process and credit the Direct Debit or Direct Credit.
BACSTEL-IP A secure, internet-based telecommunications channel that allows service users to connect to Bacs.
BIC– BANK IDENTIFIER CODE An eight or 11-character code used to identify a particular bank.
CHAPS – CLEARING HOUSE AUTOMATED PAYMENTS SYSTEM This is a company that offers same-day funds transfers or payments. Clearing – A method of exchange between financial institutions.
CORE REFERENCE A unique reference on the Direct Debit Instruction (DDI). It is made up of at least six alpha numeric, upper-case characters.
DDI – DIRECT DEBIT INSTRUCTION An authority signed by a customer that allows a service user to collect Direct Debit payments from his/her account, also known in some cases as a mandate.
DIRECT CREDIT An electronic credit transfer processed by Bacs and paid directly to a bank or building society account.
DIRECT DEBIT Payment of an agreed amount that a service user collects from a customer’s bank account. The amounts and dates may vary.
DIRECT DEBIT GUARANTEE A guarantee offered by paying banks that protects payers using Direct Debit. It specifies payers’ rights and safeguards and includes an immediate money-back guarantee should a service user debit a payer’s account erroneously.
DORMANCY PERIOD A period in which a service user does not present a Direct Debit against an account. Paying banks typically discontinue dormant Direct Debits after 13 months.
DUE DATE The date a service user will collect a payment, as specified in an advance notice, payment can be taken up to and including 3 working days after the due date.
FACILITIES MANAGEMENT SERVICE Whereby an approved Facilities Management Provider will obtain a SUN on behalf of a given organisation and act as a sponsor to allow Direct Debit collections to be processed and made on their behalf.
DIRECT DEBIT INDEMNITY This is a document which has to be completed by all participants in the Direct Debit scheme which contains a legally binding agreement for paying banks to refund payers immediately if their accounts have been debited incorrectly.
INDEMNITY CLAIM Under the Direct Debit scheme rules, a paying bank must refund a payer immediately if their account is debited erroneously. If a service user is at fault, a paying bank can reclaim the amount from that service user through the indemnity claim process.
LODGEMENT (LODGED) A lodgement is where a paying bank accepts a Direct Debit Instruction (DDI) that a service user has submitted.
MODULUS CHECKING A process that checks sort codes and account numbers are in valid formats.
PAYER A person who has given authority for a service user to debit his/her account in a DDI.
PAYER’S BRANCH The branch that holds a payer’s account.
PAYING BANK A bank that maintains a payer’s account.
RE-PRESENTATION When a service user resubmits a Direct Debit that has been returned unpaid.
SECURE FILE TRANSFER PROTOCOL (SFTP) A network protocol that provides secure file access, file transfer, and file management functionalities.
SERVICE USER An organisation that a member bank sponsors to use the Bacs’ services.
SERVICE USER NUMBER (SUN) A unique six-digit number given to organisations authorised to use Direct Debit.
SORT CODE DIRECTORY This is a register of valid Bacs sort codes maintained by paying banks. Service users may use this information to check the branch sort code of paying banks – modulus checking.
SORTING CODE A six-digit code that identifies the location of an account.
SPONSOR/SPONSORING BANK A member of Bacs that authorises organisations (including bureaux) to submit data for processing.
SECURE SOCKET LAYER (SSL) SSLs are cryptographic protocols that provide communications security over the internet.
STANDING ORDER This is an instruction customers give to their banks to pay a fixed amount on specified dates to a named individual or organisation.
TODDASO – TRANSFER OF DIRECT DEBIT AND STANDING ORDERS This process is part of the account-switching service and ensures that Direct Debits and standing orders from an account are correctly applied to a new account.
TRANSACTION CODES Codes that refer to types of transaction or to the status of a transaction on Bacs reports. For example, the code 01 is used for a first Direct Debit collection.
UNPAID DIRECT DEBIT A Direct Debit that a paying bank returns to a service user uncollected, if, for example, there are insufficient funds.
UNPAID DIRECT DEBIT REASON CODES Codes that give a reason that a paying bank has returned a Direct Debit unpaid either in an ARUDD report or in manual advice.