Automated Direct Debit Amendment and Cancellation Service
ADDACS is an electronic messaging service allowing banks to notify service users if changes are made to a customer's Direct Debit Instruction (DDI), for example when a DDI is cancelled or when an account has been transferred to a new bank or building society using the Current Account Switch Service or Bulk Payment Redirection Service.
How it works
Changes are passed to service users electronically via the Bacs service using ADDACS advices, speeding up the process and improving accuracy. ADDACS advices are made available in the form of reports.
There are two ways in which you can receive ADDACS reports:
- Automatic updates
- Manual updates
There are a number of benefits to receiving ADDACS advices directly into your system:
- A streamlined process ensuring that the information is provided to you in a consolidated and consistent way eliminating errors caused by manual input.
- No additional administrative costs associated with keying them in or delays caused by printing reports. You can simply feed the information directly into your database.
- Improved cashflow as a result of faster receipt and application of advices which can reduce the number of unpaids and indemnity claims leading to reduced costs in terms of time and money.
- Improved customer service, as your systems can be adapted to generate standard letters in accordance with reason codes to keep your customers informed where necessary.
For further information refer to ADDACS - introduction to the service which can be found in the Information Hub to the right of your screen or contact your sponsoring bank.
Your software solution provider may also be able to advise you on ways in which you can receive your ADDACS reports electronically.
Collecting ADDACS reports manually means that you are unable to take advantage of the benefits of the automated option, however manual processes still enable you to keep your records up to date.
It is important however that you act on the advices contained in the reports in a timely manner. This means that you will remain compliant in accordance with the Direct Debit Scheme Rules and will help you to avoid having to deal with matters such as failed collections, and other similar things that are likely to be time consuming and have an adverse impact on your cashflow.
Taking manual updates requires you to access your reports manually via Payment Services Website or your Bacstel-IP software.
Action on the information contained in ADDACS advices must be taken within 3 working days of the advice being made available, however it is strongly recommended that changes are applied immediately. You can set up email notifications to let you know when reports are available to help ensure they are not missed.
It is essential that you act on the ADDACS advices to ensure your payment records are kept up to date.