Two-digit transaction codes are used to identify the type of payment being processed and must be included and applied to every Direct Debit collection. Direct Debit collections use four different two-digit codes.
Every Service User must identify a first collection and subsequent ongoing collections. Therefore every Service User must use codes:
- 01 – first collection
- 17 – ongoing collections
Not all Service Users will represent collections on receipt of an unpaid Direct Debit or are aware of a final collection prior to the collection being made. If they do, these codes should be used:
- 18 – representment
- 19 – final collection
Transaction code 18 can only be used within 30 days of the original collection date and must be for exactly the same amount as the previously unsuccessful collection. If transaction code 18 is used, no Advance Notice is necessary. A Service User can re-present as many times as is necessary within 30 days.
Any unpaid Direct Debits also operate on a Bacs three-day cycle.
Often, the customer’s bank will submit the first notification on Day Three: Collection day, but this will sometimes be the day after.
- Day Three or Four: Payer’s branch sends unpaid Direct Debits to Bacs.
- Day Four or Five: Reports of unpaid Direct Debits are available from Bacs or your software.
- Day Five or Six: Service user’s accounts are automatically debited.
