Automated Return of Unapplied Credits Service
With billions of Bacs Direct Credits made annually, there are occasions when the data sent by an organisation contains incorrect information.
Banks and building societies try to ensure that Bacs Direct Credits received with incorrect details are applied to the appropriate accounts. Additionally, manual intervention is used to ensure an accurate account match.
If it is not possible to apply a Bacs Direct Credit to an account due to, for example, the beneficiary being deceased or account transferred, the item must be returned to the bank account of the organisation which sent the payment.
ARUCS allows the receiving bank to return the Bacs Direct Credit automatically to the organisation via the Bacs service and give appropriate information by way of reason codes as to why the payment was unapplied.
Bacs returns the Bacs Direct Credit to the organisation’s bank and dispatches a consolidated report to the organisation giving the reason for returning each unapplied credit.
The ARUCS service is vital in helping the organisation keep an up to date database and thus ensure that further invalid Bacs Direct Credits are not sent to the wrong bank account.