If you have been provided with a Service User Number (SUN) by your sponsoring Bank you may shortly be receiving a call from Bacs, the scheme for the electronic processing of financial transactions within the UK, reminding you of the importance of actioning your ADDACS and AWACS reports.

What is AWACS?

This is the automated system banks use to notify service users that they have used incorrect account details for a Bacs Credit. It also provides service users with correct account details for future payments.

What is ADDACS?

This is the automated Bacs service allowing banks to advise service users of any amendments or cancellations of Direct Debit Instructions (DDIs). It also informs service users of new bank account details when a customer transfers their account from one paying bank to another.

Are you correctly actioning your ADDACS/AWACS reports? If not, this could have severe consequences on your ability to collect your Direct Debit payments and send your Direct Credits, resulting in failed collections & payments - which could be catastrophic.

At a recent Bacs Affiliate meetings, Bacs reminded service users that it is actually mandatory for service users to action ADDACS/AWACS reports and that:

"delays or non-compliance may lead to serious consequences such as the sponsoring bank taking away your service user number, preventing you from collecting Direct Debits and sending Direct Credits"

The main reason for non-compliance is these service users don’t have the back office capability or infrastructure which allows them to action their ADDACS/AWACS reports automatically.  The majority of users will find that their software only displays ADDACS/AWACS reports per the Bacs requirement and doesn’t have the functionality allowing the service user to action such reports automatically.

References

http://www.bacs.co.uk/Bacs/Businesses/DirectDebit/UsingDirectDebit/BestPractice/Pages/BestPractice.aspx

http://www.bacs.co.uk/Bacs/Businesses/Resources/Collectingreports/Pages/default.aspx