--- title: "Direct Debit Claims and Cancellations" canonical: "https://bizcore.refined.site/space/BCKB/1817444418/Direct%20Debit%20Claims%20and%20Cancellations" format: markdown --- > Macro (toc) # **Overview** When a direct debit is processed, a customer can dispute this with their bank. This is known as a Claim. For direct debits from bank accounts, customers can cancel (aka payment stop) the direct debit with their bank and prevent future payments from being debited. This is known as a Cancellation. --- # **Claims** A Claim occurs when the customer lodges a dispute with their bank that the debit was not authorised to be taken. When a Claim is lodged by your customer, it is up to Biz Core to provide evidence of authority, by way of a Signed Direct Debit Request Form (DDR Form). If no signed DDR Form is on uploaded to the customer’s Payment Agreement record, the Claim will be accepted and amount refunded to the customer. ## **Claims Process** 1. Customer lodges Claim request with their bank 2. Biz Core receives Claim request from bank (Due date for response is 7 days) 3. Biz Core updates transaction status to Under Claim; 1. *a $5.00 Claim Fee is charged to you in this event, this amount will be withheld from your Settlement Payout the next day. If there is no Settlement Payout the next day or the amount doesn’t cover the fee, the Claim Fee will be invoiced to you* 4. Biz Core provides a signed DDR Form to the bank (if found on file) 1. If no signed DDR Form is uploaded to the Payment Agreement Record, Biz Core will accept the Claim and the amount will be refunded to the customer ### **Unsuccessful Claims** Once the response due date has passed and no amount has been taken by the bank, Biz Core will update the transaction status to Complete There is no official ‘Claim unsuccessful’ response given by the bank, so Biz Core will update the transaction status to Complete 3-10 banking days after the response due date has passed to allow for potential delayed recouped amounts by the bank. ### **Successful Claims** If the Claim is successful and amount refunded to the customer, Biz Core will update the transaction status to Refunded Claim. *A $35.00 Successful Claim Fee is charged to you in this event.* The refunded payment amount and Successful Claim Fee will be withheld from your Settlement Payout the next day. If there is no Settlement Payout on the next day or the amount doesn’t cover the refunded payment amount or fee, these amounts will be invoiced to you. ## **Successful Claim Prevention** Preventing successful Claims is pretty straight forward. Biz Core needs to provide a signed DDR Form where the following details match the customers details and payment schedule: - Debit amount - Debit dates - Bank account details - Customer name If any of these don’t match what actually was debited from the customer then the claim will be successful and amount refunded. ### **Updating Bank Account Details** It’s important to ensure you get a new DDR Form signed each time you update a bank account details. To get a new DDR form signed, on the customer’s Payment Agreement record expand the Sources widget and click the Request Direct Debit Authority icon next to Authorisation Link: This will email and SMS a link to the customer where they can eSign a new DDR form. Once signed, this is automatically uploaded to their Payment Agreement Record. ![image](media://6867ad30-add4-4121-9d05-f8a28c911dda) ### **Updating Payment Schedule** If you’re updating the payment schedule before any payments have been made then you can use the same method stated above to get a new DDR form signed. If you’re simply adding extra payments to the end of the schedule for the same amount and frequency as regularly debited, you can also use the same method above. However, if payments have already been made and you’re changing the debit amount or frequency, you should create an entirely new Payment Agreement so the DDR Form will reflect the new payment arrangement. --- # **Cancellations (AKA Payment Stop)** A Cancellation occurs when the customer talks to their bank and asks them to stop future direct debits to us. When we receive this, the Cancellation form is uploaded to their Payment Agreement and status changed to Cancelled. While the Payment Agreement status is Cancelled, all scheduled payments will not be attempted. If the status is changed to Authorised and the payment stop has not been lifted by the bank, all payments will automatically be declined if attempted, regardless if there are sufficient funds or not. For payments to continue the customer needs to ask their bank to lift the payment stop and allow debits from FSoft Pty Ltd (BECS User ID 503761). It’s up to you to contact the customer and request they lift the payment stop.