Common Bacs File Mistakes and How to Avoid Them
When it comes to Bacs processing, even small errors in your Bacs file can lead to delays, failed transactions, or additional administrative work. While mistakes are inevitable from time to time, some are more common than others — and most can be easily avoided with a little care. By understanding these common pitfalls, businesses can save time, reduce frustration, and ensure that Bacs payments are processed smoothly and efficiently.
In this article, we’ll explore the most frequent Bacs file mistakes and provide practical tips for avoiding them, helping you streamline your payment operations.
1. Missing mandatory data fields
Every Bacs file must include six mandatory fields of data to be processed correctly. These are:
- Payer’s sort code
- Account number
- Account name
- Amount
- User reference
- Transaction code (also known as the Bacs code)
While additional information can be included if necessary, these six fields are essential for successful Bacs payments. Omitting any of these fields will result in errors and may prevent the file from being accepted for processing.
Tip: Always double-check your Bacs file before submission to ensure all mandatory fields are populated. Some accounting software packages include automated checks to flag missing fields, which can be a huge time-saver.
2. Invalid sort code and/or account number
Errors in sort codes or account numbers are another common cause of rejected Bacs files. There are a few key points to bear in mind:
- Sort codes must be six digits, and account numbers must be eight digits. Leading zeroes must never be removed.
- Invalid characters, such as letters or special symbols, should not be included.
Mistakes in this area are easy to make, especially if data is being transferred manually between systems. A small formatting error can prevent Bacs payments from going through, leading to delays or even returned funds.
Tip: Use validation tools or built-in software checks to ensure all sort codes and account numbers meet the required standards.
3. Values in an AUDDIS File
For businesses using the Automated Direct Debit Instruction Service (AUDDIS), values in your Bacs file must be carefully checked. Specifically:
- Any new instructions or cancellations should have values set at zero.
- Only debits and credits should include amounts above zero.
If values above zero appear in the wrong section of the Bacs file, the entire submission may be rejected, causing delays in processing.
Tip: Review your AUDDIS files carefully before submission, and ensure that values correspond correctly to the type of transaction being submitted.
4. Commas within payee names
It may sound minor, but commas in payee names can create significant issues in Bacs processing, particularly for CSV files. This is most common in:
- Joint accounts (e.g., “John Smith, Jane Smith”)
- Names written with a family name before a given name
A single misplaced comma can break the structure of your Bacs file, potentially causing errors throughout the entire document.
Tip: Check for commas or other special characters in payee names before generating your Bacs file. Many software tools allow you to enclose text fields in quotation marks to avoid formatting issues.
5. File format discrepancies
Another common source of errors is file format discrepancies. These can occur when:
- Files are exported from a CRM or accounting system in the wrong format
- Files are amended manually at the service user’s end, changing the format inadvertently (for example, editing an Excel file in Notepad)
Even seemingly minor format changes can prevent successful Bacs processing and result in rejected payments.
Tip: Always ensure that your Bacs file is in the correct format required by your bank or payment processor. Avoid unnecessary manual edits in applications that may alter the file structure.
In Summary
By avoiding these common mistakes — missing mandatory data fields, invalid sort codes or account numbers, incorrect AUDDIS values, commas in payee names, and file format discrepancies — you can save time and ensure your Bacs payments are processed successfully.
Remember, meticulous preparation of your Bacs file is key. Double-checking mandatory fields, validating account details, and maintaining proper file formats will go a long way in preventing delays or errors.
At ClearDebit, our experienced Bacs processing team is always on hand to help. If you encounter issues with your Bacs file, whether it’s formatting, values, or any other concern, simply get in touch with us. We’re here to support your business and ensure your payments are processed quickly, accurately, and efficiently.
If you have any questions or need further support, please do not hesitate to contact us. We are here to help you navigate the technicalities of Direct Debit management.
