How direct debits work
A direct debit transaction is a transfer of funds from your account to an account with another financial institution you have authorised to debit your account.
When you set up a direct debit you are giving permission to the merchant or service provider (‘the Direct Debit Supplier’) to withdraw funds from your account at set times to pay for the good or service received from the Direct Debit Supplier (e.g. health insurance premium, internet subscription). This payment may be set to occur on a regular basis or as a once-off payment. You can also fix your direct debit to a certain amount (e.g. $50) every period (e.g. fortnightly), or choose a variable amount, where the Direct Debit Supplier will deduct the exact amount of each bill.
To set up a direct debit you must complete and sign a Direct Debit Request Service Agreement with the Direct Debit Supplier. This gives the Direct Debit Supplier the authority to request us to debit your account. You should read this document carefully before signing to ensure that you are aware of your rights and obligations under the agreement. We will commence the direct debit payment after we receive the authorisation from the Direct Debit Supplier.
Keep an eye on your account balance to ensure you have sufficient funds in your account at any given time to cover the amount of your direct debits. This way you will avoid paying a direct debit dishonour fee which is triggered when a direct debit request is unable to be processed because you do not have enough funds in your account to cover the amount of the direct debit.
How to cancel a direct debit
An authority given to a third party to debit your transaction account may be cancelled by notice to the third party and/or by notice to the financial institution where the account is held.
What will we do
We will act promptly to cancel a direct debit facility linked to your transaction account when you request us to do so. We will not tell you to try to cancel the facility with the Direct Debit Supplier first. While we may suggest that you also contact the Direct Debit Supplier we won’t insist that you do.
What do you need to do
To stop a direct debit you must provide written instructions to us setting out full details of the direct debit including the following:
- the name of the Direct Debit Supplier and your account or reference number with them; and
- the name and number of your Queensland Country Bank account from which the direct debit is made; and
- the amount and timing of each payment; and
- the date you wish the direct debit cancellation to take effect.
Your written instructions must be provided at least three (3) business days before the next payment is to be made. To assist you in providing us with your instructions we have a dedicated form which records all the information we require in order to cancel the direct debit.
We will provide your Direct Debit Cancellation Request to the Direct Debit Supplier’s financial institution for actioning and will ensure as far as practicable that no further direct debits under your Direct Debit Request are applied to your account.