How we handle a dishonour

Introduction
Direct Debit is the simplest and most effective method for controlling ongoing payments. Once a request is sent to your customers bank the payment is generally deemed accepted unless the customers bank advises otherwise. Payments can dishonour for any number of reasons (see dishonour codes)

Auto Re-debit Settings
Upon creating each direct debit, you have a set of Auto Actions you can select that will determine what action takes place if your customers scheduled debit fails.

Add to next payment
Debit in Three (3) Days
Debit in One (1) Week
Debit in Two (2) Weeks
Append to Last

If you are On-Charging the Dishonour Fee to your customer, we will add this onto the next successful debit. You have the option of us sending your customer an email advising them that the scheduled payment failed and we will attempt to re-debit the account again. (see Customer Notifications) 

Timeframe
Dishonours are generally received from your customers bank within 2 to 3 business days. Although rare payments can still dishonour some time after this period in special circumstances. In line with our obligations as a participant to the Direct Entry system we are required to accept any dishonours that may occur after funds have been cleared.

 
 
For more information see the attached fact sheet provided by the Australian Payments Clearing Association.
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