Setting up Direct Debit

What is direct debit?

Direct debit lets your customers pay by authorising a debit from their Australian bank account. It suits one-off payments and payment plans. Credit Clear processes direct debit payments through our payment gateway, FatZebra.

What a customer must agree to before you can debit them

Before you can debit a customer's account, you need their authority. This is called a Direct Debit Request (DDR). It applies to every direct debit, whichever option you choose below. It is set out in the AusPayNet guidelines: Guidelines for Establishing Direct Debit Requests Electronically or by Telephone (v2, July 2019).

When a DDR is given electronically, without a signature, the guidelines say you must:

Identify the customer and confirm they control the account being debited.
Get the customer's approval. They must indicate they approve the DDR contents and intend to be bound by it.
Use a reliable method, such as secure verification tools.
Keep a record of the DDR that you can access later. You should keep it for 7 years after the last processed debit.

The guidelines also expect you to:

Make the Service Agreement terms available when the DDR is given. The agreement must explain how to cancel, and that a cancellation request can go to you or to the customer's bank.
Provide the customer a printed or non-changeable electronic copy within 7 days.
Check that the BSB is genuine and current.
Stop debiting promptly once the customer cancels.

If a customer later disputes a debit, you need to be able to prove they authorised it.

Note: the guidelines are not contractually binding. Your Sponsorship Agreement and the BECS Procedures take priority.

How Credit Clear's authorisation flow supports this

Requirement	What the customer and Credit Clear do
Identify the customer	The customer verifies their identity with a one-time code sent to their email
Customer approves and agrees to be bound	The customer reviews and accepts the Direct Debit Service Agreement. We record the date, time and IP address of acceptance
Bank details	The customer enters their account name, BSB and account number
Copy of the agreement	The agreement is emailed to the customer
Record kept	We store an authorisation record for each account
Cancellation	The agreement explains how to cancel, and a cancellation can be recorded against the agreement

This flow is used when Credit Clear collects the authorisation (Option 1, below).

Before you start (pre-requisites)

FatZebra: direct debit is available with FatZebra payment gateway.
Your authorisation approach: choose who collects the customer's authorisation (see "Two ways to run direct debit").
Your details (see the next section).

What we need from you

Item	Why we need it
Company name, address and contact details	Shown on the Direct Debit Service Agreement
Dispute email and phone number	The contact customers use for direct debit queries or disputes
Bank accounts to exclude (BSB and account number)	Accounts that must never be debited, such as your own accounts
Preferred agreement wording, branding and email copy (optional)	We can tailor the agreement and emails, subject to your sign-off
Your authorisation approach	Decides which customer experience we set up

Two ways to run direct debit

Option 1: Credit Clear collects the authorisation

The customer verifies their identity, then reviews and accepts the Service Agreement.
They receive a copy by email, and we keep a record of the acceptance.

Option 2: You collect the authorisation

The customer simply enters their bank details on the payment page.
Credit Clear does not issue an agreement or record the acceptance.

Warning: The authority is still mandatory with Option 2. You are responsible for identifying the customer, getting their approval, giving them a copy of the agreement, and keeping the record for each customer. You need to be able to produce it if a debit is disputed.

How setup works

You send us the details above via support request.
We configure direct debit for your account and, for Option 1, set up your agreement and email templates.
We test the flow with you in our test environment.
Direct debit goes live for your customers.

FAQs

Is customer authorisation really mandatory?

Yes. You can only debit an account if you hold the account holder's authority (a DDR), as set out in the AusPayNet guidelines. With Option 1, Credit Clear collects it. With Option 2, you must collect and keep it.

How long does a direct debit payment take?

A direct debit request takes at least three working days to process. During holiday periods or around public holidays, processing times can be significantly longer, potentially 10–15 days.

Do you retry failed direct debit payments?

No. A failed payment is not retried automatically.

Is direct debit available with any gateway?

No. It is only available with FatZebra.

Can a customer cancel their direct debit?

Yes. Customers can cancel through you or through their own bank. With Option 1 we can record the cancellation against the agreement. With Option 2 you handle the cancellation.

Can you block certain bank accounts?

Yes. Give us the BSB and account numbers.

Can we customise the agreement and emails?

Yes, with Option 1, subject to your approval.

Who do customers contact about a dispute?

The dispute email and phone number you provide to us.