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Can a direct debit transaction overdraw my account?

It is your responsibility to ensure that you have sufficient available funds in your chosen account when payments are due to be withdrawn.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. An account overdrawn fee and debit interest may apply. If we do honour a payment, or do so more than once, it does not mean we have any obligation to do so in the future. If we decide not to allow it, the payment will be dishonoured.


If the payment is dishonoured, you are required to contact the merchant to discuss alternate payment options.


Please note that you may avoid being charged the account overdrawn fee by returning your account to a positive balance, by 6pm Sydney time on the day the transaction is conducted.

Refer to Overdrawing your account for more information on when your account can become overdrawn.