YOUR
FINANCIAL
INSTITUTION
CAN
HELP
YOU
WITH
YOUR
DIRECT
DEBIT
ARRANGEMENTS
The Australian Payments Clearing Association’s (APCA)
direct debit system rules and banking practice codes
place certain obligations on financial institutions.
Whenever you ask your financial institution to help you
with your direct debit arrangements, there are certain
things it must do:
Acting on your DDR request. If you ask your financial
institution to stop a direct debit payment, amend
or cancel a DDR, or dispute a transaction, it must
act on your request. It cannot refuse to accept your
instructions or direct you to the biller (although in some
cases, where service fees may apply, your financial
institution might recommend that contacting the biller
is the best course of action).
Cancelling your DDR. Your financial institution must
always act on your requests promptly and, in the case
of cancellation requests, ensure, as far as practicable,
that no further direct debits are made to your account
once the DDR is cancelled.
Resolving your DDR dispute. When you dispute a
direct debit payment, your financial institution must
contact the biller’s financial institution. The biller
must provide proof that you have given permission
for money to be taken straight out of your account.
Otherwise, a full refund will be made to your account.
For further information
WWW.APCA.COM.AU
THE
INS
AND
OUTS
OF
DIRECT
DEBIT
The convenient, safe and reliable
way to make payments.
Australian Payments Clearing Association
ABN 12 055 136 519
Disclaimer: The material in this brochure is provided for general
information purposes only. For further information please contact
your financial institution.
AP007 DIRET DEBIT BROCHURE 1-3
GPO Box 4893 Sydney NSW 2001
Tel. 61 2 9221 8944 Fax. 61 2 9221 8057
11/9/09 12:13:31 PM
WHAT
IS
“DIRECT
DEBIT”?
Direct debit is a simple and convenient way to make
regular payments straight out of your bank, building
society or credit union (financial institution) account. It is
most often used for regular transactions like mortgage
repayments, insurance premiums and utility bills.
To pay by direct debit, you will need to complete a
Direct Debit Request (DDR) authority with the business
or company (the biller) that you wish to pay. The DDR
gives the biller permission to collect payments from your
account on a regular agreed due date without you having
to manually arrange a payment.
Once the biller has initiated the collection process
payment is made through the financial institution where
your account is held.
YOU
Permission
to
collect
payments
(DDR)
1
BILLER
IMPORTANT
QUESTIONS
AND
ANSWERS
WHAT
IF
I
WANT
TO
STOP
ONE
PAYMENT
AND
THEN
CONTINUE
AS
USUAL?
When you set-up a direct debit, the biller will give you a
copy of the DDR and the DDR Service Agreement. It is
important that you keep these documents as they set out
the terms and conditions of how payments will be made
from your account. Also, importantly, the DDR Service
Agreement explains how to cancel or make changes to
your DDR.
To stop a direct debit payment, you need to contact
either the biller or your financial institution. It is advisable
that you do this well before the direct debit payment is
due. Information on how much notice your biller will need
is included in the DDR Service Agreement. If you stop a
direct debit payment through your financial institution, it
may block all further payments to that biller until you tell
it to remove the stop payment instruction. Your financial
institution can provide more information.
WHAT
HAPPENS
IF
I
GIVE
THE
BILLER
A
DDR
AND
THEN
CHANGE
MY
MIND?
You can cancel your direct debit arrangements at any
time, for whatever reason. Similarly, you can make
changes to your DDR; if for example, you decide to have
payments made from a different account to the one you
originally nominated. To cancel or make changes to a
DDR, you need to contact either:
The biller; or
WHAT
IF
THE
WRONG
AMOUNT
IS
TAKEN
OUT
OF
MY
ACCOUNT?
If you believe money has been taken out of your account
incorrectly, or without your permission, you need to
contact your financial institution immediately. Your
financial institution will then decide on an appropriate
course of action.
Your financial institution (who will pass on your request).
5
Direct
debit
on
statement
FINANCIAL
INSTITUTION
YOUR
ACCOUNT
Payment
request
3
Payment
request
4
Payment
on
due
date
AP007 DIRET DEBIT BROCHURE 4-6
2
FINANCIAL
INSTITUTION
The biller will cancel your direct debit arrangements
regardless of whether the request to do so comes direct
from you or through your financial institution. Of course,
you will need to make other payment arrangements with
the biller for any amounts you owe.
WHAT
HAPPENS
IF
I
DON’T
HAVE
ENOUGH
MONEY
IN
MY
ACCOUNT
ON
THE
DAY
PAYMENT
IS
DUE?
It is your responsibility to make sure that there is enough
money in your account, or that you make other payment
arrangements with the biller, before the direct debit is
due. Otherwise, you may be charged a fee by the biller
and by your financial institution.
BILLER’S
ACCOUNT
11/9/09 12:13:31 PM