The ADDACS report contains information on Direct Debit Cancellations. Remember, customers can cancel their Direct Debit Instruction with their bank and not tell you. This report therefore, is sometimes the only way to learn what has been cancelled.
The report also tells you about Amendments to Direct Debit instructions. If an account number has changed for example, or if a customer has changed their name, you will be notified via this report. You should then update the payers details in your master database.
This report is typically created when the customer takes an action e.g. cancelling their direct debit or changing their name. As a result, you can receive these reports at any time.
Benefits of Actioning
If you attempt to collect a Direct Debit that has already been cancelled, you will be unsuccessful. You will then have to reconcile the failures. Where you have already been informed that the Direct Debit has been cancelled you may also receive attention from Bacs. Typically they will contact you to advise that you have not actioned the information in the report. Updating you master database with the contents of your ADDACS reports avoids this and ensures you keep your customer details up to date.
Access the report from the Payment Services website and/or via your Bacs software and/or via your Bureau. Action the contents within 3 working days.
Typical Reason Codes
- 0 – Instruction cancelled – refer to payer
- 1 – Instruction cancelled by payer
- 2 – Payer deceased
- 3 – Account transferred to another PSP (Bank)
- 4 – Account closed
There are other less frequently seen codes within the report. The action that you need to take varies depending on which code you receive / the information being provided. Promptly actioning the reports will ensure you only try to collect valid Direct Debits and that you are using the correct details. This means there is less chance of failure and causing any friction with your customers. There will also be less errors that you need to reconcile.
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