✅ Frequently Asked Questions (FAQs) - DirectDebit
What is PayNet DirectDebit?
DirectDebit is an automated payment service that allows businesses to collect recurring payments directly from customers’ bank accounts after obtaining a one-time authorization (mandate).
Who can use DirectDebit?
Businesses, billing organizations, and individuals with current, savings, or credit card accounts at participating banks can use DirectDebit for automated collections and payments.
How does DirectDebit work for businesses?
After a customer authorizes a DirectDebit mandate, businesses can debit the agreed amount from the customer’s account on a recurring basis according to the schedule and amount specified in the mandate.
What are the benefits of DirectDebit for businesses?
- Automated and efficient collection of recurring payments
- Improved cash flow predictability
- Reduced administrative burden and cost compared to manual collections or other auto-debit methods
- Secure infrastructure and payment reference information for easy reconciliation
What are the benefits for customers?
- Hassle-free, automated payments for recurring bills
- No cost to register or use DirectDebit
- Payments are made securely and only with explicit authorization
- Customers retain control and can cancel the mandate at any time
How can a business register for DirectDebit?
Businesses must apply with their bank or through the PayNet platform to become a DirectDebit biller. Once approved, they can collect payments from customers at 22 participating banks.
How do customers set up DirectDebit?
Customers check if their biller offers DirectDebit, fill in the DirectDebit Authorization form, and confirm the frequency, effective date, and amount. The agreed amount is then deducted automatically from their selected account.
Are there any fees for using DirectDebit?
There is no cost for customers to use DirectDebit. For businesses, DirectDebit is generally more cost-effective than other auto-debit payment methods, but specific fees may depend on the arrangement with their bank.
Can customers use any bank account for DirectDebit?
Customers can use most current, savings, or credit card accounts with participating banks. Debit cards are not accepted.
What happens if there are insufficient funds in the customer’s account?
If there are insufficient funds, the payment may be rejected, and the customer may need to make alternative arrangements. The biller may notify the customer in advance of the payment due date and amount.
Is customer approval required for every payment?
No, once a customer provides a one-time mandate during enrolment, multiple periodic payments can be made as specified in the authorization form.
How secure is DirectDebit?
DirectDebit is built on a secure payment infrastructure, and every registration requires explicit customer authorization, ensuring safety and control.
Will the payment always be on the same date every month?
Yes, a fixed payment date is scheduled in the system regardless of whether payments are made monthly, quarterly, or annually. If the payment date falls on a weekend or bank holiday, the biller will debit your bank account on the next business day, unless you are notified otherwise in advance.
How do I cancel DirectDebit Authorisation?
If you need to cancel your DirectDebit Authorisation, you can follow these steps:
- Obtain a new DirectDebit Authorisation Form (DDA Form) from your biller.
- In the form, locate the ‘Type of Application’ field and select ‘Termination’ to indicate your request to cancel the authorisation.
- Alternatively, you may also terminate your DirectDebit Authorisation electronically via the e-Mandate platform if your biller supports this option.
Can money be collected from my account after I cancelled a DirectDebit Authorisation?
No, the biller must obtain your explicit authorization before reinstating a cancelled Direct Debit instruction. Without your consent, the biller cannot resume debiting your account. This ensures that any reinstatement is secure and fully authorized by you as the payer.