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Glossary of UK Direct Debit terms

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

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David and his team manage relationships with banks, scheme providers, and other parties involved in payment transactions in the UK and Scandinavia. David has worked in the finance and payment industry for over 12 years, primarily focusing on the BACs and Faster Payments schemes. He has sat on governance committees and chaired cross-government public sector working groups. David is also a regular attendee at the SIBOS and MoneyLIVE financial conferences. ConnectSee full bio

Last editedOct 2023

Term	Meaning	More details
ADDACS messages	Automated Direct Debit Amendment and Cancellation messages notify Service Users of amendments and cancellations made by their customers to their DDIs.	Receiving messages from Bacs
Advance Notice	Notice that must be given, under the Scheme rules, to customers of each payment before it leaves their account.	Taking payments
ARUDD messages	Automated Return of Unpaid Direct Debits messages notify Service Users of any unpaid Direct Debits.	Receiving messages from Bacs
AUDDIS	The AUtomated Direct Debit Instruction Service, through which all new direct Service Users must now submit requests to Bacs.	Submitting to the banks
AUDDIS messages	AUtomated Direct Debit Instruction Service messages notify Service Users of issues setting up or cancelling a Direct Debit Instruction.	Receiving messages from Bacs
Bacs	The clearing system that administers the Direct Debit scheme - all Direct Debit communications go through Bacs. Originally an acronym for "Bankers' Automated Clearing Services", you will sometimes see Bacs written as BACS.	What is Direct Debit?
Bacs payment cycle	All communications through Bacs operate on the Bacs three working day cycle. See timings for more information.	Payment timings
Bacstel-IP	The secure internet-based service provided by Bacs for communications between Service Users and Bacs.	Submitting to the banks
Bacstel-IP software	A Bacs approved software package must be used to communicate over Bacstel-IP.	Submitting to the banks
Bureau	An organisation that submits Direct Debit requests to Bacs on behalf of a 3rd party. A list of approved bureaux is published by Bacs.	Getting Access to Direct Debit
Counter claim	The claim raised by a Service User to dispute an indemnity claim from a customer. Counter claims must be made within 14 days of an indemnity claim being settled.	Direct Debit Guarantee
DDICA messages	Direct Debit Indemnity Claim Advice messages notify Service Users of indemnity claims from their customers.	Receiving messages from Bacs
Direct Debit Guarantee	The guarantee given on all payments made by Direct Debit.	Direct Debit Guarantee
Direct Debit Instruction	An authorisation from your customer to collect future payments automatically. To set up a DDI your customers must complete a standardised form.	Direct Debit Mandates
Direct Debit Instruction form	A paper form that customers must complete to authorise a Direct Debit Instruction to you. You can see an example here.	Direct Debit Mandates
Direct Debit Mandate	Alternative name for a Direct Debit Instruction.	Direct Debit Mandates
Due date	The date a payment is due to be debited from a payer's account.	Payment timings
Facilities Management	A service provided by a Bureau in which they submit payments to Bacs on behalf of a merchant under a Service User Number attached to a bank account owned by the bureau.	Getting Access to Direct Debit
Indemnity Claim	A request for a refund under the Direct Debit Guarantee. Claims are assessed by the Payer's bank and funds are then recouped from the Service User automatically.	Direct Debit Guarantee
Input file	A file, in a standardised format, submitted to Bacs by Service Users to lodge new Direct Debit Instruction and payment requests.	Submitting to the banks
Input report	Every time a Service User submits payments or DDIs to Bacs, they receive an Input Report summarising the submission.	Receiving messages from Bacs
Managed Administration	A service provided by a Bureau in which they submit payments to Bacs on your behalf, under your own Service User Number.	Getting Access to Direct Debit
Paperless Direct Debit	Process for authorising a Direct Debit Instruction over the phone or online, instead of with a paper form.	Direct Debit Mandates
Paying bank	The bank or building society at which a customer's DDI is lodged.	Taking payments
SEPA Direct Debit	A single Direct Debit Scheme which applies across the whole Single European Payments Area.	SEPA Direct Debit guide
Service User	An organisation approved by a sponsor bank to submit Direct Debit requests to Bacs.	Getting Access to Direct Debit
Service User Number (SUN)	A 6 digit unique identifier issued to every Service User.	Getting Access to Direct Debit
Sponsor Bank	A bank that enables you to access the Direct Debit Scheme and provides you with a Service User Number.	Getting Access to Direct Debit
Unpaid Direct Debits	Payments which could not be collected from the customer's account, for a variety of reasons, including insufficient funds.	Receiving messages from Bacs
Working Days	Submissions to Bacs can only occur on working days, which exclude weekends and bank holidays. Bacs provide a definitive list of working days for the Direct Debit system.	Payment timings