Returned DD meaning: What is ARUDD reason code 6
ARUDD stands for Automated Return of Unpaid Direct Debit. It’s a report generated by Bacs when a direct debit fails to process. Reason Code 6 specifically means, ‘No account or account closed’. Basically, the bank account details provided are either incorrect or the account has been closed. This code is used when the bank cannot locate the account referenced in the direct debit instruction.
Why might a direct debit be returned?
Returned direct debits can happen for several reasons, including:
- The customer has closed their bank account
- The account number or sort code is incorrect
- The account is not set up to accept direct debits
These issues trigger an ARUDD report, which is sent to the originator (you) via your Bacs-approved software.
What happens after a returned direct debit?
When a DD is returned, you’ll receive a notification through your Bacs service. This will include:
- The reason code (e.g. Code 6)
- The payer’s details
- The amount that failed to be collected
You’ll need to take action to resolve the issue, either by contacting the customer or updating the payment details.
Returned direct debits are often preventable. Ensuring accurate bank details and using validation tools can significantly reduce failure rates.
How to resolve ARUDD reason code 6
Here’s what you can do:
- Contact the customer to confirm their bank details.
- Update your records if the account has changed.
- Reissue the direct debit instruction once correct details are confirmed.
- Use validation tools to check bank details before submission.
If the account is permanently closed, you may need to arrange an alternative payment method.
How returned DDs affect your business
Returned direct debits can lead to:
- Delayed revenue collection
Impacting cash flow and forecasting
- Increased admin time
Chasing payments and updating records
- Customer dissatisfaction
Especially if services are paused or disrupted
- Higher operational costs
Due to manual intervention and reprocessing
- Compliance risks
If failed payments aren’t handled correctly
By proactively managing direct debit failures and using validation tools, businesses can reduce these risks and improve payment reliability.
What should you do next?
If you’re seeing frequent returned DDs, it may be time to review your payment processes. Access PaySuite offers tools to:
- Validate bank details before submission
- Automate direct debit collections
- Reduce payment failures
Returned direct debits are more than just a payment hiccup, they can impact your operations, customer relationships, and bottom line. Understanding ARUDD codes and having the right tools in place helps you stay in control and reduce disruption. Contact our knowledgeable team to learn more.
FAQs
What does returned DD mean?
A returned DD (Direct Debit) means the payment request was rejected by the payer’s bank and not processed.
What is ARUDD?
ARUDD stands for Automated Return of Unpaid Direct Debit. It’s a Bacs report detailing failed DD transactions
What does Reason Code 6 mean?
Reason Code 6 means “No account or account closed”, the bank account details are invalid or the account no longer exists.
The AUDDIS file was sent but I still got this unpaid code - why?
Yes, this can happen. Even if an AUDDIS file was sent and received by Bacs, you may still see ARUDD Reason Code 6 if the account is closed or invalid. You can either re-send the AUDDIS file or retry the collection once the issue is resolved.
How does Access PaySuite handle ‘No Instructions’ for returned DDs?
Access PaySuite typically submits AUDDIS files three times per week, though this can be adjusted to suit your needs. We monitor all ‘No Instructions’ reported back and automatically resend AUDDIS files that include Reason Code 6 or F26, unless you've opted out of this process.
I have a high number of Direct Debit unpaid items marked ‘No Instructions’. What should I do?
This suggests something may be wrong with your submission process. It could be that an AUDDIS file wasn’t submitted correctly to Bacs, or there’s an administrative coding error in the ARUDD report. We recommend investigating this promptly to avoid further payment failures.
Where can I find more information about Bacs unpaid codes?
For a full list of Bacs unpaid codes and their definitions, we recommend reviewing the Direct Debit Service User Guide and Rules. This resource provides detailed explanations of each code and how they apply to your payment processes.
How can I prevent returned DDs?
Use bank detail validation tools, confirm customer information regularly, and monitor ARUDD reports for patterns.
What should I do if a DD is returned?
Contact the customer, verify their bank details, and reissue the DD instruction if appropriate.
Is there a way to automate DD management?
Yes. Access PaySuite offers automated tools to manage direct debits, validate data, and reduce failure rates.