How do I notify my customers about direct debit payments?
Recurring and instalment direct debit payment plans require no action from you because the payment frequency is agreed by you and your customer.
However there are strict requirements about when and how to notify your customers each time you initiate an 'invoice direct debit' from your customer’s account:
- You must notify your customer about the upcoming direct debit at least 10 days before the payment to allow time for your customer to ensure sufficient funds are available, dispute the transaction or cancel the direct debit if necessary.
- Your notification should use this wording: The amount $......... will be direct debited to your bank account on .
- You can send the notification either by email or SMS if your customer has agreed to this and has provided you with their email address or mobile phone number.
- You must initiate the direct debit strictly within the conditions of the authority and notice given to your customer and only on the date advised to your customer.
- You may collect previously unpaid direct debits as long as you comply with the notice requirements specified in the direct debit authority.
- If you do not give correct notice to your customer, he or she may request a direct debit reversal up to 120 days after the date of the direct debit.