Recording returned Direct Debit transactions and importing an ARUDD report
Should a Direct Debit transaction fail for any reason, it can be marked as returned in CareHQ so that related accounts are kept up to date. It's also possible to import an ARUDD (Automated Return of Unpaid Direct Debits) report from Bacs, to automatically mark relevant Direct Debit collections as returned and unreconcile any associated receipts from invoices.
This article covers how to mark a Direct Debit transaction as returned and how to import an ARUDD report file in order to automatically mark any relevant Direct Debit collections as returned.
An ARUDD (Automated Return of Unpaid Direct Debits) report is an electronic file generated by Bacs whenever a customer's Direct Debit collection fails. Under Bacs scheme regulations, businesses are required to access their ARUDD reports via the Bacs Payment Services Website, approved Bacs software, or their Direct Debit bureau. Companies must action the report findings within 3 working days of them becoming available, to remain compliant.
Recording a returned Direct Debit transaction
To mark a Direct Debit transation as returned, follow the steps below:
- Select Direct debit from the main navigation menu, then select the Transactions tab from the top of the page.
- Use the Search field to find the returned transaction by billing party name or the mandate/transaction reference.
- Select the transaction from the list, then select the Record return action from the top of the page.
- Select the appropriate Reason for return as provided by the Payment Service Provider (PSP), and check/set the correct Returned date.
- Save to record the Direct Debit return.
Please note: CareHQ will automatically set the Returned date based on the Bacs payment rules which usually report returned transactions 2 days after the collection date. However, in some cases a return can happen 3 days after the collection date. It's important to state the correct date when recording a return.
CareHQ will automatically mark the Direct Debit receipt payment as returned in the Receipts section of the main navigation menu.
The invoices which were due to be collected will still have a balance, and the funding source activity statement will show the attempted collection and the return.
Importing an ARUDD report
If you have received an ARUDD (Automated Return of Unpaid Direct Debits) report from Bacs detailing multiple failed Direct Debit collections, the ARUDD report file can be imported directly into CareHQ.
To import an ARUDD report file, follow the steps below:
- Select Direct debit from the main navigation menu, then select the Import ARUDD action from the top of the transactions page.
- Select Upload file... and find/select the appropriate ARUDD report file from your computer, then select the Import button.
Provided the file import is successful, relevant Direct Debit collections will be marked as returned and any associated receipts will be unreconciled from invoices.