APCA has developed a brochure for customers and new materials for financial institutions to improve the understanding of how direct debit payments work.
The direct entry system is one of Australia’s most widely used payment methods. There are more than 2.2 million direct debit transactions totalling around $16.6 billion made each business day. While the system is simple and convenient to use, there was opportunity to clarify the rules and obligations associated with Direct Debit Requests (DDRs), in particular the cancellation processes.
APCA has developed a new brochure to inform customers about DDRs and how their financial institutions can help with direct debit arrangements. The brochure makes it clear that customers can stop a direct debit payment, modify details or cancel a DDR by notifying either the biller or their financial institution. Titled The Ins and Outs of Direct Debit, the brochure is available on APCA’s website. It has also been made available to financial institutions for distribution to their customers.
To assist financial institutions with the direct debit rules, APCA has produced templates for best practice Direct Debit Requests (DDRs) and for DDR Service Agreements. These are now part of the Bulk Electronic Clearing System (BECS) Procedures.