PDD stands for ‘Paperless Direct Debit’.
As a Service User you must first be approved to offer the Paperless Direct Debit (PDD) service. This enables Service Users to sign up clients for Direct Debit by telephone, the Internet, keypad, Face-to-face or Interactive. To be approved, you will need to complete an application form(s) from your Sponsoring Bank.
To be able to collect via Paperless Direct Debit, the Service User must be setup for AUDDIS.
You must apply to you sponsoring bank to become a Paperless Direct Debit Originator (PDD). They will send you an application form & a PDD Indemnity. These must be completed, signed and then sent back to your sponsoring bank.
Once received, the bank will set you up as test status. In order to become live, the bank must see the proposed scripts and Advance Notice letter that will be sent to the payer. Further details can be found in Section 16 of The Service User Guide and Rules.
A confirmation letter incorporating the Advance Notice letter must be received by the payer no later than 10 working days prior to the first collection date.
Download an example of the Advance Notice letter via Paperless Direct Debit
Not when they’re Paperless Direct Debit service users; for them the service is truly paperless.
Their customers can authorise DDIs without a signature, and are still protected by the Direct Debit Guarantee.
Service users must send a written confirmation letter to the payer within 3 working days of their verbal or internet Instruction.
Alternatively, this letter incorporating advance notice must be received by the payer no later than 10 working days prior to debiting their first payment, provided the first collection is made within a month from set-up.
Yes, provided the service user is authorised by their bank to accept Direct Debit Instructions by this method.
The service user asks the customer authorising the DDI to supply details including their bank account number, account name and sort code, using an approved script. If authorisation is made via the internet, they must key these details into a screen on the service user’s website. The service user then validates the information and lodges the DDI with the paying bank via AUDDIS. All telephone scripts and internet screens for setting up a DDI must be approved by the service user’s bank.
No. You’re still fully covered. A copy of the Guarantee will be sent to you with the confirmation letter.