Direct Debit is perfect for the collection of funds from a customer on a regular basis. Frequencies can be weekly, fortnightly, monthly or quarterly, with the option to debit either from your customers bank accounts and credit cards. You also have the option of on-charging any processing fees to your customer.
Every Direct Debit you wish to setup for a customer must start with a formal authority. This authority is in the form of a Direct Debit Request which outlines:
- The terms and conditions that will govern the direct debit
- How much is to be drawn and the terms of the ongoing schedule
- The BSB and Account from which the funds should be debited from
- Signed authority from the account holder
We offer three options for Direct Debiting:
- Paper Authority Form (DDR)
- Paperless/Electronic Authority (eDDR)
- Variable Authority (DDR & eDDR)
Direct Debit forms can be downloaded from the secure client site under Direct Debits in the menu. You can not alter the terms and conditions of this form, however you are permitted to place your own logo on the Direct Debit Request form. If you have set up your branding
It is important that the DDR is correctly filled in and any alterations are agreed to and initialed by the customer. In the event that any dispute is raised by the customer the DDR must be tendered to the customers bank to support your authority to debit. If the forms does not accurately reflect the agreed terms or the form appears to be tampered or altered the customer may be entitled to a refund and you may be liable for a complete reversal of all debits.
Once the DDR has been uploaded we must approve the schedule. This is generally done within a few hours of uploading the DDR. If any information on the schedule does NOT match the DDR the schedule will be rejected and you will be required to re-submit the schedule.
When a new Direct Debit schedule is either approved or rejected you will receive a notification by email and also an entry in the notifications.
Once your Direct Debit schedule is approved, we will begin to drawing payments in line with the terms of the schedule. You should monitor your notifications for any items that may be dishonoured.
On-charging direct debit fees to your customers
You have the option to on-charge the fees relating to a schedule to your customer, providing the customer has signed a Direct Debit Request form indicating that the fee will be charged. The default option when setting up a new direct debit, is to on-charge.
You can simply untick these boxes if you want to absorb the fees yourself. You will be invoiced for any fees that are not on-charged to your customer.
What happens if a dishonour occurs?
If a debit dishonours the dishonour fee along with the debit fee will accrue and we will attempt to debit these fees at the next available opportunity. Read about how we handle dishonours in our Direct Debit FAQ.