BACS - Mandate Management

Setting up a Direct Debit Instruction

This template allows creating a Direct Debit Instruction in order to process Direct Debits against Mambu deposit account. Direct Debit Instructions can be submitted to Paying Bank by the Service User in one of the following ways: Electronically via Bacs or Paper Instruction.

Sequence diagram

ClearBank Retail Banking: Create mandate

Direct Debit Instructions (DDIs) document an authorisation agreement between a debtor and a beneficiary to collect Direct Debits in Bacs. A Direct Debit Instruction is set up as a record of this agreement and stored by both the beneficiary’s and the debtor’s bank.

Direct Debit Instructions adhere to the Bacs 3-day cycle (three consecutive working days):

  • Day 1: Input Day -> instruction is submitted to Bacs
  • Day 2: Processing Day -> instruction is processed by Bacs & webhook BacsMandateInitiated sent by ClearBank
  • Day 3: Entry day:
    • -> success: instruction becomes effective
    • -> failure: webhook BacsMandateInitiatedFailed sent by ClearBank (instruction fails validation)

Create Paper Mandate

The process Create Paper Mandate [API] is manually triggered from MPO in order to create a Paper Direct Debit Instruction in ClearBank.

A successful response from ClearBank triggers BacsMandateInitiated webhook confirming the Direct Debit Instruction has been set up. Mambu custom field mandatesDetails is updated with the Service User Name and Mandate ID for the created mandate.

mandatesDetails [NETFLIX: 5bcb40d9-b904-438e-8696-1438ab82c968];

In case of failure BacsMandateInitiatedFailed webhook is sent by ClearBank with a specific reason code. If the notification was set to true then a task will be created in Mambu/ZenDesk based on the configuration Notification Setup with a specific error message in order to be analyzed.

Task created due to: Required field: ‘depositAccountId’ is missing for Deposit Account: LXNG616 using IBAN: GB84CLRB04062687167050. Paper Mandate with mandate id: f153e6b6-220c-4623-ac76-07d9a9199264 was already created in ClearBank with SUN: 772353. Mambu custom field was not updated. Process ID: 705999.

Reasons for failed initiation:

  • 5 - No account
  • B - Virtual account is closed
  • F - Real account is closed or does not accept Direct Debits
  • I - Reference is subset or superset of another item for that SUN and account
  • K - The Paying Bank has cancelled the DDI for that Service User

For the negative cases when mandatesDetails custom field is not updated a manual intervention is needed in order to correct the error. mandatesDetails custom field in Mambu should be updated by adding the Originator name (identified in ClearBank as Service User Name) and Mandate ID.
The following format must be used:

  • single mandate: [Service User Name: Mandate ID];
  • multiple mandates: [Service User Name1: Mandate ID1];[Service User Name2: Mandate ID2];

Create Electronic Mandate (AUDDIS)

The process Create AUDDIS Mandate [Bacs] is automatically triggered when an Automated Direct Debit Instruction Service (AUDDIS) instruction is initiated from Bacs system and webhook BacsMandateInitiated is received in MPO. The Bacs service enables Direct Debit Instructions (DDIs) to be electronically setup (by a 0N transaction) by service users.

ClearBank performs validation and screening on the received DDI:

  • if the instruction is accepted ClearBank sends the BacsMandateInitiated webhook confirming the DDI has been set up. After the AUDDIS instruction is created in ClearBank, the mandate details mandate ID and originator name are stored in Mambu in mandatesDetails custom field.
  • if the instruction is rejected ClearBank sends a Bank Returned AUDDIS message to the Service User followed by BacsMandateInitiatedFailed webhook, advising the Service User that the Direct Debit Instruction has been rejected, including the reason.

Reasons for failed AUDDIS initiation:

  • 1 - Instruction cancelled by payer
  • 2 - Payer deceased
  • 3 - Account transferred
  • 5 - No account
  • 6 - No Instruction
  • 7 - DDI amount not zero
  • B - Account closed
  • C - Account transferred to a different branch of the Paying Bank
  • F - Invalid account type (account does not accept Direct Debits)
  • G - Paying Bank will not accept Direct Debits on account
  • H - Instruction has expired
  • I - Payer Reference is not unique
  • K - Instruction cancelled by Paying Bank for that Service User
  • L - Incorrect payer’s Account Details
  • M - Transaction Code / User Status incompatible
  • N - Transaction disallowed at payer’s branch
  • O - Invalid reference
  • P - Payer’s Name not present
  • Q - Service user’s name blank

Notes:

  • After a paper mandate is created the Mandate Instruction Type displayed in ClearBank is Paper DDI.
  • After an AUDDIS instruction is created the Mandate Instruction Type displayed in ClearBank is AUDDIS.
  • Multiple AUDDIS instructions can be created at once using Bacs file.

Amending a Direct Debit Instruction

This template allows a payer to move their Direct Debit Instruction to another account that they own at that Institution.

Sequence diagram

ClearBank Retail Banking: Amend Mandate

The process Amend Mandate [Bacs] is manually triggered from MPO when the debtor account for a Direct Debit Instruction needs to be changed/updated/moved. The new debtor account must be a valid ClearBank account and be linked to a Mambu deposit account through a virtual account. This flow applies for paper and AUDDIS instructions.

When the instruction is amended:

  • ClearBank stores the Service User Number and Reference against the new account.
  • ClearBank notifies the Service User by the Automated Direct Debit Amendment and Cancellation Service (ADDACS), advising of the change to the Instruction.
  • In Mambu the mandate details Service User Name and Mandate ID are first removed from the initial debtor account and then added to new debtor account in mandateDetails custom field on deposit account level.

Reasons for ADDACS amendments:

  • 0 - Instruction cancelled - Refer to payer
  • 1 - Instruction cancelled by payer
  • 2 - Payer deceased
  • 3 - Account transferred to a new PSP
  • B - Account closed
  • C - Account transferred to a different branch of a PSP
  • D - Advance notice disputed
  • E - Instruction amended
  • R - Instruction re-instated

For the negative flows if a notification was set to true then a task will be created in Mambu/ZenDesk based on the configuration Notification Setup with a specific error message in order to be analyzed.

Task created due to: Required field: ‘depositAccountId’ is missing for Deposit Account: LXNG616. Amend Mandate with ID: f153e6b6-220c-4623-ac76-07d9a9199264 and SUN: 772353 FROM Debtor IBAN: GB84CLRB04062687167050 TO Debtor IBAN: GB44CLRB04062677003916 was done in ClearBank. Mambu Custom Field was not updated (add). Process ID: 705999.

When mandatesDetails custom field is not updated a manual intervention is needed in order to correct the error. mandatesDetails custom field in Mambu should be updated as following:

  • adding the Originator name (identified in ClearBank as Service User Name) and Mandate ID for new deposit account.
  • removing the mandate details Originator name and Mandate ID from the initial deposit account (including the square brackets). The following format must be used:
  • single mandate: [Service User Name: Mandate ID];
  • multiple mandates: [Service User Name1: Mandate ID1];[Service User Name2: Mandate ID2];

Reason codes for amending a Direct Debit Instruction:

  • C - Account transferred to a different branch of bank/building society
  • E - Instruction amended

Notes:

  • For Amending a Direct Debit Instruction no webhook is triggered by ClearBank.
  • The new account may be held on the same sort code as the original account, or on a different sort code issued to the same Paying Bank.

Migrating a Direct Debit Instruction

This template allows migrating a Paper Direct Debit Instruction to Automated Direct Debit Instruction Service (AUDDIS) via Bacs system.

Sequence diagram

ClearBank Retail Banking: Migrate Paper Mandate

The process is automatically triggered when migration cycle of a paper Instruction to AUDDIS is initiated from Bacs system and BacsMandateMigrated webhook is sent by ClearBank and received in MPO. BacsMandateMigrated webhook details are stored in Mandate Migrated Receiver process used only for acknowledgement purpose.

After the paper Instruction is migrated, in ClearBank UI the Mandate Instruction Type value is updated: from Paper DDI to Migrated therefore no updates are needed in Mambu. The Bacs service enables Direct Debit Instructions (DDI) to be electronically migrated (by a 0S transaction) by service users.

Notes:

  • Only Paper Mandates can be migrated.
  • Multiple paper mandates can be migrated at once using Bacs system.
  • In case of failure no webhook is sent by ClearBank.

Cancelling a Direct Debit Instruction

This template allows cancelling a Direct Debit Instruction (DDI) via ClearBank UI, Bacs system or ClearBank API.

Sequence diagram

ClearBank Retail Banking: Cancel Mandate

Cancel Mandate (UI or Bacs system)

The process Cancel Mandate [UI | Bacs] is automatically triggered when cancellation cycle of a Direct Debit Instruction (paper or AUDDIS) is initiated from ClearBank UI or Bacs system file and BacsMandateCancelled webhook is received in MPO.

A Direct Debit Instruction (DDI) can be cancelled by the Payer, by Bank or by Service User:

  • cancelled by Payer -> cancellation reason should be Cancelled by Payer
  • cancelled by Bank -> cancellation reason should be Cancelled by Paying Bank
  • electronically cancelled by Service User -> AUDDIS 0C transaction code

If the cancellation request is accepted, ClearBank sends the BacsMandateCancelled webhook confirming the DDI has been canceled and also sends the Advice of Direct Debit Amendments and Cancellations (ADDACS) message to the Service User. After the DDI is cancelled in ClearBank, in Mambu the corresponding values [Service User Name: Mandate ID]; are removed from mandatesDetails custom field.

Reasons for ADDACS cancellation:

  • 0 - Instruction cancelled - Refer to payer
  • 1 - Instruction cancelled by payer
  • 2 - Payer deceased
  • 3 - Account transferred to a new PSP
  • B - Account closed
  • C - Account transferred to a different branch of a PSP
  • D - Advance notice disputed
  • E - Instruction amended
  • R - Instruction re-instated

When a DDI is electronically cancelled by Service User, ClearBank checks the cancellation matches a known Direct Debit Instruction. If not matched, ClearBank notifies the Service User of the error using a Bank Returned AUDDIS message and sends BacsMandateCancellationFailed webhook.

For the negative cases if the notification was set to true then a task will be created in Mambu/ZenDesk based on the configuration Notification Setup with a specific error message in order to be analyzed.

Reasons for failed AUDDIS cancellation:

  • 1 - Instruction cancelled by payer
  • 2 - Payer deceased
  • 3 - Account transferred
  • 5 - No account
  • 6 - No Instruction
  • 7 - DDI amount not zero
  • B - Account closed
  • C - Account transferred to a different branch of the Paying Bank
  • F - Invalid account type (account does not accept Direct Debits)
  • G - Paying Bank will not accept Direct Debits on account
  • H - Instruction has expired
  • I - Payer Reference is not unique
  • K - Instruction cancelled by Paying Bank for that Service User
  • L - Incorrect payer’s Account Details
  • M - Transaction Code / User Status incompatible
  • N - Transaction disallowed at payer’s branch
  • O - Invalid reference
  • P - Payer’s Name not present
  • Q - Service user’s name blank

Notes:

  • Multiple mandates can be cancelled using Bacs system.
  • After cancellation by Paying Bank, the Service User cannot set up further DDIs on that account (usually used when the Bank wants to close the account).

Cancel Mandate (API)

The process Cancel Mandate [API] is manually triggered from MPO when a cancellation of an Instruction (paper or AUDDIS) is initiated. Before sending the cancellation request to ClearBank, first the linkage between Mambu Deposit Account and ClearBank virtual account is verified and, second the mandate that needs to be cancelled is identified in ClearBank.

A successful response from ClearBank triggers the BacsMandateCancelled webhook which confirms that the Direct Debit Instruction was cancelled, and also sends the Advice of Direct Debit Amendments and Cancellations (ADDACS) message to the Service User. In Mambu the mandatesDetails custom field is updated by removing the Service User Name and Mandate ID from the deposit account.

In case of failure the BacsMandateCancellationFailed webhook is sent by ClearBank with a specific reason code. If the notification was set to true then a task will be created in Mambu/ZenDesk based on the configuration Notification Setup with a specific error message in order to be analyzed.

For the negative case when mandatesDetails custom field is not updated a manual intervention is needed in order to correct the error. mandatesDetails custom field in Mambu should be updated by removing the Originator name (identified in ClearBank as Service User Name) and Mandate ID.

Reasons for canceling a Direct Debit Instruction via API:

  • 0 - Institution cancelled - refer to payer. Paying bank has cancelled instruction.
  • 1 - Instruction cancelled by payer. Payer has instructed the paying bank to cancel the DirectDebit Instruction (Mandate).
  • 2 - Payer deceased
  • B - Account closed. Payer has closed their account for an unknown reason.

Returning a Direct Debit Instruction

Sequence diagram

ClearBank Retail Banking: Return Mandate

The process Return AUDDIS Mandate [API] is manually triggered from MPO. This flow applies for returning an existent AUDDIS Instruction using ClearBank APIs which was created on the same day. Before sending the returning request to ClearBank, first the linkage between Mambu Deposit Account and ClearBank virtual account is verified and second the Instruction that needs to be returned is identified in ClearBank.

A successful response from ClearBank triggers the BacsMandateReturned webhook which confirms that the AUDDIS Instruction was returned. In Mambu the mandatesDetails custom field is updated by removing the Service User Name and Mandate ID from deposit account.

In case of failurethe BacsMandateReturnFailed webhook is sent by ClearBank with a specific reason code. If the notification was set to true then a task will be created in Mambu/ZenDesk based on the configuration Notification Setup with a specific error message in order to be analyzed.

Rejection codes for returning an AUDDIS mandate:

  • 1 - Instruction cancelled by payer
  • 2 - Payer deceased
  • 3 - Account transferred
  • 5 - No account
  • 6 - No Instruction
  • B - Account closed
  • C - Account transferred to a different branch of the bank/building society
  • F - Invalid account type
  • G - Bank will not accept Direct Debits on account
  • H - Instruction has expired
  • I - Payer Reference is not unique
  • K - Instruction cancelled by paying bank

For the negative case when mandatesDetails custom field is not updated a manual intervention is needed in order to correct the error. mandatesDetails custom field in Mambu should be updated by removing the Originator name (identified in ClearBank as Service User Name) and Mandate ID.

Notes:

  • A returned AUDDIS mandate is displayed in ClearBank as Cancelled.
  • Paper mandates will need to be returned via post or cancelled if needed.