Dishonours & Fee Settings

Once a request to debit payment is successfully sent to your customers bank the payment is generally considered accepted unless the bank advises otherwise. Payments can dishonour for any number of reasons (see Payment Dishonour Codes/Reasons).

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.

What happens when a payment fails?

Upon creating each direct debit, you have a set of Auto Actions you can select that will determine what action takes place if your customer's scheduled payment fails.

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

When a payment fails it is considered dishonoured, as it was unable to be paid on the scheduled time due to the fault of a customer or their bank. In this case a dishonour fee will be applied.

Dishonours

A dishonour means that a customer wasn't able to pay the scheduled debit/instalment at the scheduled time. This incurs a dishonour fee. This can be either paid by you on behalf of your customers, or on-charged to your customers.

If you are On-Charging the Dishonour Fee to your customer, we will add this onto the next successful debit. Dishonours are always an agreed upon flat fee. You can view this at any time under Account Settings and then Subscription Plan. 

You have the option of us sending your customer an email advising them that the scheduled payment failed, or you can let them know yourself. Read more about how to change your customer notification settings.

Per Debit Fees

These are merchant service fees calculated based on the amount you are charging to a customer. Generally the per debit fees will be dollars and cents. These can be on-charged to customers at no expense to you, or can be paid by your business on their behalf.

If you on-charge per debit fees, make sure the amount you are telling the customer to pay accommodates for these charges.

Where can I change my default fee settings?

These settings can be changed at any time on an active or draft direct debit in the Fees & Failure Actions. 

You can change your default settings at any time under Account Settings and then Payment Fees.