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
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 BacsDay 2
: Processing Day -> instruction is processed by Bacs & webhookBacsMandateInitiated
sent by ClearBankDay 3
: Entry day:- ->
success
: instruction becomes effective - ->
failure
: webhookBacsMandateInitiatedFailed
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 accountB
- Virtual account is closedF
- Real account is closed or does not accept Direct DebitsI
- Reference is subset or superset of another item for that SUN and accountK
- 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 theBacsMandateInitiated
webhook confirming the DDI has been set up. After theAUDDIS
instruction is created in ClearBank, the mandate detailsmandate ID
andoriginator name
are stored in Mambu inmandatesDetails
custom field. - if the instruction is
rejected
ClearBank sends a Bank ReturnedAUDDIS
message to the Service User followed byBacsMandateInitiatedFailed
webhook, advising the Service User that theDirect Debit Instruction
has been rejected, including the reason.
Reasons for failed AUDDIS initiation:
1
- Instruction cancelled by payer2
- Payer deceased3
- Account transferred5
- No account6
- No Instruction7
- DDI amount not zeroB
- Account closedC
- Account transferred to a different branch of the Paying BankF
- Invalid account type (account does not accept Direct Debits)G
- Paying Bank will not accept Direct Debits on accountH
- Instruction has expiredI
- Payer Reference is not uniqueK
- Instruction cancelled by Paying Bank for that Service UserL
- Incorrect payer’s Account DetailsM
- Transaction Code / User Status incompatibleN
- Transaction disallowed at payer’s branchO
- Invalid referenceP
- Payer’s Name not presentQ
- 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
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
andReference
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
andMandate ID
are firstremoved
from theinitial
debtor account and thenadded
tonew
debtor account inmandateDetails
custom field on deposit account level.
Reasons for ADDACS
amendments:
0
- Instruction cancelled - Refer to payer1
- Instruction cancelled by payer2
- Payer deceased3
- Account transferred to a new PSPB
- Account closedC
- Account transferred to a different branch of a PSPD
- Advance notice disputedE
- Instruction amendedR
- 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 asService User Name
) andMandate ID
for new deposit account. - removing the mandate details
Originator name
andMandate 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 societyE
- 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
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
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 payer1
- Instruction cancelled by payer2
- Payer deceased3
- Account transferred to a new PSPB
- Account closedC
- Account transferred to a different branch of a PSPD
- Advance notice disputedE
- Instruction amendedR
- 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 payer2
- Payer deceased3
- Account transferred5
- No account6
- No Instruction7
- DDI amount not zeroB
- Account closedC
- Account transferred to a different branch of the Paying BankF
- Invalid account type (account does not accept Direct Debits)G
- Paying Bank will not accept Direct Debits on accountH
- Instruction has expiredI
- Payer Reference is not uniqueK
- Instruction cancelled by Paying Bank for that Service UserL
- Incorrect payer’s Account DetailsM
- Transaction Code / User Status incompatibleN
- Transaction disallowed at payer’s branchO
- Invalid referenceP
- Payer’s Name not presentQ
- 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 deceasedB
- Account closed. Payer has closed their account for an unknown reason.
Returning a Direct Debit Instruction
Sequence diagram
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 failure
the 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 payer2
- Payer deceased3
- Account transferred5
- No account6
- No InstructionB
- Account closedC
- Account transferred to a different branch of the bank/building societyF
- Invalid account typeG
- Bank will not accept Direct Debits on accountH
- Instruction has expiredI
- Payer Reference is not uniqueK
- 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.