Introduction to Direct Debit Mandate Processing

This guide briefly explains how to upload the file received from Vocalink with the direct debit origination details. The Direct Debit Originator (DDO) details are stored in Temenos Transact and the originator details of the mandate are validated against the DDO by the paying bank.

The new functionality covers the initiation, amendment and cancellation of a mandate by the service user and in this process, the BACS message files (AUDDIS) will be generated. It will also entail direct debits processing from the role of a paying bank. The paying bank will be able to validate the service user against the DDO (Direct Debit Originators) directory during inward mandate processing. The paying bank can initiate a cancellation of a mandate which generates the ADDACS files to be sent to the service user.

Click here to understand the terms and abbreviations used in this functionality.

AUDDIS Bank Return and ADDACS Reports

With this functionality a new report format has been introduced and both the AUDDIS Bank Return and ADDACS reports will be received in an XML format by the bank, which can be processed automatically during the COB process or can be executed manually. Once the XML files are placed in the respective folders by the bank, Temenos Transact services will process the files.

This functionality allows banks to parameterise and to validate the payment types related to a loan arrangement available in Temenos Transact.

The UKDDMP.PARAMETER application has been introduced to configure the payment types which are supported by the financial institution. The configured values are used to validate the payment types of the loan arrangement in order to establish a link or a delinking between the DD Mandate and the loan arrangement.

Dormancy Period for BACS Direct Debit Mandate

Complying with BACS rules, Direct Debit Instructions (DDIs) have an active period after which they become dormant. The service user can have individual dormancy periods that are published in the DDO directory.

This functionality enables banks to perform manual maintenance of the dormancy period. Using this functionality banks are able to update the dormancy period by the import of the DDO extract, check the dormancy on active mandates based on the dormancy period of the service user, reset the dormancy period and also reinstate the DDI.