No Instruction (6)
As a customer of SmartDebit, we will download your Bacs reports, on your behalf, each morning from Bacs Payment Services. These will then be uploaded to the SmartDebit Pulse portal.
During the download process, we will also convert all Bacs reports to a simpler CSV format, ensuring they are easier to interpret, and providing a written explanation of each reason code, rather than just the reason code itself. The 3 different types of Bacs report you may receive are:
- AUDDIS (Automated Direct Debit Instruction Service)
- ADDACS (Automated Direct Debit Amendment and Cancellation Service)
- ARRUD (Automated Return of Unpaid Direct Debit)
A common reason code that is provided within some of these reports is ‘No Instruction’. This reason code can often be difficult to understand and to determine what the best course of action should be. This document will assist further in dealing with a ‘No Instruction’.
Please see below a detailed description of the possible reasons for a ‘No Instruction’ and the action that will be required.
If you receive a ‘No Instruction’ reason code within an AUDDIS report, this will relate to a new Payer that has been set up on the SmartDebit Pulse portal. It indicates that there is no instruction held at the paying bank and that you will be unable to take the Direct Debit. In this instance, it is best practice to check with your Payer that the account details that have been entered onto the SmartDebit Pulse portal are correct. As standard, SmartDebit will obscure all account details therefore you will need to make contact with our Customer Service Team to decrypt the details. If the account details are incorrect, you will be able to update these via the ‘Edit Payer’ page.
If you have confirmed that the account details are correct with your Payer, it could be that the paying bank did not set up the Direct Debit in time for the first collection. If this is the case, SmartDebit can resubmit the instruction to Bacs on your behalf, at your request. We advise waiting 5-7 working days before attempting to collect the Direct Debit again.
As with the AUDDIS report, a ‘No Instruction’ reason code within an ARUDD report indicates that there is no instruction held at the paying bank however the reason for this will differ to the AUDDIS report.
The first reason why you may receive a ‘No instruction’ in an ARUDD report could be that the bank account details were changed by the payer (ADDACS), or on the SmartDebit Pulse portal, too close to the collection date. This means that the paying bank were not able to update the Direct Debit prior to the collection date. If you do need to change the account details on the portal, we advise that this is done in line with your New Payer Lead Time. This will then allow enough time for the paying banks to update their records and change the Direct Debit Instruction.
Another reason why you may receive a ‘No Instruction’ in an ARRUD report could be that the Direct Debit has entered into a dormant state. Typically, if a Direct Debit has not been collected in 13 months, the paying bank will remove the instruction from the account as it is now deemed dormant. However, this will not cancel the Direct Debit on the SmartDebit Pulse portal. If you have received a ‘No Instruction’ and can see that this is now a dormant Direct Debit, SmartDebit will be able to resubmit the Direct Debit Instruction to Bacs, at your request, allowing collections to continue. Once SmartDebit have confirmed the Direct Debit Instruction has been resubmitted, you will be able to re-present the failed Direct Debit. Please note, we advise allowing 5-7 working days before taking the collection again.
If you wish to re-present a Direct Debit that has been returned in an ARUDD report as ‘No Instruction’, you will notice that you are unable to do so. This is because it is not advised to re-present a ‘No Instruction’ until you can confirm everything is in order. Therefore, you will need to submit your request to SmartDebit who can then ‘release’ the Direct Debit in the background, which will allow you to re-present the Unpaid Direct Debit.
Attached to this article is SmartDebit’s full Reason Code document which will outline the circumstances behind each reason code in AUDDIS, ADDACS and ARUDD reports and the best course of action to take.
For further assistance, please do not hesitate to contact our Customer Service Team at email@example.com. Alternatively, you can call us on 01276 851820.