What is a Direct Debit?
A Direct Debit is a contract between an individual and merchant/company. The agreement allows the merchant/company to automatically debit funds from the individual’s agreed account (using the BSB and account number or credit card number) as per the terms and conditions of the Direct Debit agreement.
When a Direct Debit is established using a credit card number, this is referred to as a reoccurring card payment. These payments are governed by the card scheme (Visa or MasterCard) which means the bank needs to comply with the card scheme terms and conditions when servicing these transactions.
It is your responsibility to ensure that you have sufficient available funds in your chosen account when payments are due to be withdrawn.