Failed BACS Direct Debit Collections

Occasionally, a Direct Debit collection may fail. When this happens a BACS report is generated explaining why the payment could not be collected.

esenda does not automatically retry failed collections. Before attempting to collect the payment again, you should review the reason for the failure and take any necessary action.

Viewing BACS Reports

BACS reports can be accessed in one of two ways:

• Within esenda, by navigating to BACS Reports (if your user account has the required permissions).
• Through your BACS service account on your BACS provider's website.

These reports explain why each Direct Debit instruction was successful or unsuccessful.

Common Reasons for Failed Collections

Some common reasons include:

• Insufficient funds – The payer did not have enough funds available in their account.
• Cancelled Direct Debit Mandate – The payer has cancelled their Direct Debit instruction with their bank.
• Other bank or account-related issues – Refer to your BACS report for the specific failure reason.

What to Do Next

The appropriate action depends on the reason for the failure.

Insufficient Funds

If the collection failed because of insufficient funds:

1. Contact the payer and ask them to ensure sufficient funds are available in their account.
2. Once confirmed, create a new Direct Debit collection for the payment.

Cancelled Direct Debit Mandate

If the Direct Debit mandate has been cancelled:

1. Ask the payer to complete a new Direct Debit mandate.
2. Wait until the new mandate has been successfully created and is active.
3. Submit a new Direct Debit collection.

NOTE- You could also offer alternative payment methods through esenda such as card to give more flexibility on the payer's end.

Does esenda Automatically Retry Failed Collections?

No.

Failed Direct Debit collections are not automatically resubmitted. This helps prevent repeated collection attempts when there is an underlying issue that first needs to be resolved.

Understanding "Excluded" Collections

If a Direct Debit instruction is shown as Excluded, this does not indicate that the collection has failed.

An Excluded status means the payment was deliberately removed from the collection batch before it was submitted.

This feature allows administrators to exclude one or more individual payment instructions without having to recreate the entire batch.

Need Help?

If you are unsure why a collection has failed or need assistance interpreting a BACS report, please contact [email protected].