Scheme compliance

The Direct Debit Scheme is a tight set of rules that govern the processes, procedures and behaviours of the businesses that use the service (the Originator). To use the service a business must have received approval from its sponsoring Bank or financial institution.

Compliance with the Scheme will determine the sponsor’s continued support of the Originator – failure to maintain these standards can result in ejection from the Scheme and loss of Originator status.

DD-iD™ ensures complete compliance of the Scheme by providing the only full ID authentication check that verifies Name, Address, and Bank Account number in one click, and can go into much more detail, cross checking these areas with credit card details, DVLA information and passport amongst numerous other datasets.

No other service provides a single check of this data.

Extracts from the BACS Originator Guide

Introduction

“In joining the service, the Originator accepts liability in the case of a Payer disputing his authority had for further information been given to set up a DDI".

An Originator wishing to join the Paperless Direct Debit Service must apply to its Sponsor who will assess the application. The Originator must complete a separate application for each OIN.

Prior to joining Paperless Direct Debit, Originators must be aware of the associated additional risks involved in using the service, as follows:

• It is the Originator’s responsibility to verify the customer and validate their details, i.e. identity; account details; customer address.

• Originators cannot Counter Claim following receipt of an Indemnity Claim
  for the reason ‘Payer disputes having given authority’

• Originators must be aware that there may be an impact on future business
  if Direct Debit ceases to be the preferred payment method for Payers.

• The Originator must consider the wider reputational issues for the Scheme
  particularly with regard to the risk of fraud. Paperless Direct Debit may not
  be suitable for some transactions such as high value payments”

Section 16.9 Mandatory Inclusions for A Paperless Sign-Up

“Use of the term Mandatory in the Originators Guide:

Section 16.9 of the Originators Guide; Suggested Outline of Paperless Direct Debit Script

“The following are mandatory inclusions:

• Verification that the customer is the account holder and therefore the Payer . If the customer is not the account holder a paper DDI must be sent to the Payer for completion. A list of verification measures to assist in verifying the Payers details is available from www.bacs.co.uk/BPSL/directdebit/businesses/library.
• Taking the Payer’s Bank or Building Society account number, sort code and account name; and confirm that the person entering into the transaction is the only person required to authorise debits from the account. If more than one person has to authorise debits from the account a paper DDI must be sent to the Payer for completion
• Advice of the Advance Notice period
• Confirmation of bank details back to the Payer
• An explanation of the Direct Debit Guarantee
• Advice of the company name that will appear against the Direct Debit on the Payer’s bank statement
• An Originator who is unable to lodge the DDI within 10 working days of the Direct Debit set-up must advise the Payer that the Direct Debit will not be set up on their bank account until XXXX (depending on when the Originator will lodge the DDI). However, the Payer must still be sent confirmation of the Direct Debit details in the post within 3 working days. “