News and Views

Mandatory use of AUDDIS from January 2008

In January, Bacs Payment Schemes Limited announed that, all new Direct Debit Service User numbers being applied for must utilise the AUtomated Direct Debit Instruction Service (AUDDIS). This new Scheme Rule currently won't apply to Service Users choosing to process through a third party Bureaux (Indirect Submitters) and at present does not affect existing Direct Debit Users not utilising the service.

The industry stopped their AUDDIS Progression initiative a few years ago when figures showed that approx 90-92% of all Direct Debit Instructions are processed through this service. It would now appear from the scheduled announcement that they are trying to increase this further. Could this be the first step to mandating the use of AUDDIS for ALL Direct Debit Service Users and eliminating the exchange of paper between Service Users and Banks?

Despite the benefits, surprisingly AUDDIS is not currently being used by the majority of Direct Debit Service Users. Our message to any Service Users not currently using AUDDIS for Direct Debit is to consider it now. It is a superior service to that of sending paper to the payers banks and can assist with the reduction of errors and unpaid Direct Debits.

(February 2008)