What are paperless Direct Debits?

Donors can now set up a Direct Debit over the phone or online, without having to sign a paper form.

These paperless sign-ups offer exactly the same Direct Debit guarantees (immediate refund in event of error; advance notice of account being debited and right to cancel at any time etc), but no paper signature is required.

These are expected to prove popular and are being heavily promoted by BACS (Bankers Automated Clearing Service) – the banking organisation behind the Direct Debit scheme.

So how do I set this up?

1. You need to be AUDDIS compliant.

What does this mean? AUDDIS is the Automated Direct Debit Instruction Service. It replaces the process where you would send your supporter or customer a form and they would fill it in and send it to you - you then send it on to the bank. Instead, once the supporter or customer has given their details to you and they have been verified, this information is sent by electronic transfer straight to your bank who set up the Direct Debit. Your bank will be able to help you with the appropriate forms and procedures you need to gain AUDDIS compliance.

2. Complete a paperless Direct Debit application form from your bank.

You can do this at the same time as your AUDDIS application. This will also give you full details of the requirements of the scheme, like verifying that the customer is the account holder and explaining the Direct Debit guarantee.

Your bank manager should be able to assist with both. Should you have any queries or problems relating to this process, please give us a call.