Insights Charity

Do you know your ARUDD from your AUDDIS or ADDACS?!

On our second post exploring some of the Bacs Direct Debit terms, we shine a spotlight on these frequently used words to bring them to life and to help you manage your regular payments.

ARUDD – Automated Return of Unpaid Direct Debit

Sometimes this term has an ‘S’ at the end to represent ‘Service’ but for the most part, is referred to as ARUDD. As the name suggests, this Bacs report will show you all unpaid items and why they have been rejected by the bank once your Direct Debits have been submitted. This is normally within three working days.

Understanding the reasons for rejection is an important step

The 2 most reported (will represent 90%+ of all ‘unpaids’ on average) are:

  • Refer to Payer – your supporter did not have sufficient monies when the Direct Debit claim was made. You can represent the following month or try and represent on another day. You will have to make sure you follow the rules here but for the most part for donations, these get tried once more the following month. During this period, your supporter will either contact you to make alternative arrangements, cancel, or hopefully money will be in so they continue to support you. We would expect 50% of supporters to continue with their gift – so a good reason to represent!
  • Instruction Cancelled by Payer – the supporter has cancelled their Direct Debit with you. You should contact the supporter and thank them for their support and see if there is anything to win them back. There are a host of different flows here to test but you can’t claim again until you have been Instructed again by your supporter.

Over the course of the year, Elovate will be looking at what percentage of ARUDD we see, and we will share this information as a charity benchmark so you can compare it against your files. We will update the Sector once completed. As a general rule, we would expect the total number of ARUDD to be less than 2% of your claim file but you will more than likely see less than 1% which will be more of the norm.for charity donations.

Want to learn about AUDDIS reports? Click here

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