Direct debits and recurring payments FAQ

A: A direct debit is a regular automatic payment set up on your account using your BSB and account number. When you set up a direct debit using your BSB and account number, it allows a merchant or service provider to withdraw an agreed amount of money from your account into a merchant’s or service provider’s account at set times. For example, to pay for a service, bills, the gym, or to make repayments on your home loan.

The merchant will provide you with a Direct Debit Request (DDR) Service Agreement for you to complete and sign to provide them with this authority.

A recurring payment is a regular automatic payment set up from your debit or credit card with a merchant or service provider. To do this, you’ll need to arrange a Recurring Payment Authority (RPA) and give the merchant or service provider your card number, expiry date and 3-digit CVV number on the back of your card. This allows the merchant or service provider to charge your debit or credit card.

It is important to ensure you have enough funds in your bank account prior to the direct debit or a recurring payment being processed to avoid any dishonour or overdraft fees.

A: If you need to cancel a direct debit authority you can do so by contacting our Member Service team, emailing info@gcmutual.bank or visiting one of our Service Centres and providing us with the remitter (merchant) details.

We will promptly process your instruction to cancel the remitter’s authority and stop the payments by forwarding a cancellation notice to the service provider’s bank. However, we suggest that you also contact the remitter to let them know the direct debit has been cancelled and keep copies of your correspondence.

Please note, cancelling your direct debit doesn’t cancel your arrangement with the merchant or service provider. If you still owe money for a service or utility, for example, you’ll need to negotiate an alternative payment method.

We will provide you with a confirmation that your request has been processed.

A: To cancel a recurring payment on your credit card you will need to contact the service provider with instructions to cancel the service and ongoing charges.

You should always consider any terms and conditions the service provider may have regarding cancelling a recurring payment.

If you have a regular payment set up and your credit or debit card expiry dates change, it’s your responsibility to tell the merchant or service provider.

A: To modify the scheduled date or repayment of your direct debit, you will need to contact the merchant or business directly.

A: Some billers (merchants or companies) will use a third party company to process their direct debit payments. You may find the transaction will appear on your statement in the name of the debiting company rather than the merchant on the agreement.

If you contact the debiting company they can provide more information about who they are debiting on behalf of.

If you still don’t recognise the direct debit please call us on 1300 364 400 or via email at info@gcmutual.bank.

A: It is your responsibility to ensure that you have sufficient available funds in your account when payments are due to be withdrawn. While the bank is under no obligation to do so on any particular occasion, we may permit you to overdraw your account by allowing a direct debit payment to occur even if there are insufficient funds in the account. If we do honour a transaction, or do so more than once, it does not mean we have any obligation to do so in the future.

If we honour a transaction or overdraw your account, fees and charges may apply.

Alternatively, if the payment dishonours, you are required to contact the merchant to discuss alternate payment options and fees and charges will apply.

A: We can immediately cancel or suspend your direct debit facility as we reasonably consider appropriate in the circumstances if:

• three consecutive direct debit instructions are dishonoured
• we suspect any direct debit payments may be fraudulent
• for security reasons, we suspect your account has been compromised or is at risk of being compromised
• your account is overdrawn and you have not corrected that overdrawn position in accordance with the terms and conditions of your account
• you are in default of the terms and conditions of your account and you have not rectified that default in the time specified in any notice to remedy the default
• we are required to by law
• you suffer an insolvency event
• you or a joint account holder becomes deceased or
• your account becomes dormant.

If we do this, remitters will not be able to initiate a direct debit from your account under their Direct Debit Request (DDR) Service Agreement. Under the terms of their DDR Service Agreement, the remitter may charge you a fee for each dishonour of their direct debit request.