What is Direct Debit?
Direct Debit is a payment collection method that enables your organisation to draw monies from your customer's accounts on a regular basis.
How does it work?
By using our transaction banking solution - Business Banking Online, you are able to process a Direct Debit file transaction over the internet.
The Direct Debit file contains your customers account numbers, the amounts you wish to draw and some reference data that will appear on your customers bank statements. Upon submitting the file using Business Banking Online, the funds will be drawn from each of your customers accounts and the total value will be credited to your account overnight.
Business Banking Online, enables you to either create the Direct Debit file within the system, or import directly from your own accounting office software.
Direct Debit files follow a standard format across all financial institutions approved by the Australian Banking Association. Therefore, most accounting software packages will be able to automatically create an approved formatted file, which you can then import directly into Business Banking Online for processing.
What are the advantages of using Direct Debit?
- The timing in which you receive payments is not left to chance because you are in control.
- Reduced time is spent chasing unpaid or delinquent accounts.
- Improves cash flow and working capital.
- Provides greater certainty for cash flow forecasting.
- Is more cost effective than many other funds collection mechanisms.
- Reduces administrative procedures and paperwork when contrasted to the traditional "cheque is in the mail".
- For your customers, direct debit is often a more convenient and cost effective process for making payments.
Who can use Direct Debit?
Direct Debit is most suitable for organisations that collect payments from the same debtors, and even more suitable if the amount collected remains unchanged each period, for example membership subscriptions.
How to Apply?
You are required to apply for a Direct Debit facility sponsored by BankSA as well as register for Business Banking Online to be able to use the facility.
Direct Debit Application
You must be an existing business customer of the bank to apply for a Direct Debit facility. Your application is subject to meeting industry guidelines surrounding the Direct Debit System which are governed by the Australian Payments and Clearing Association (APCA). Your application is also subject to meeting our minimum requirements criteria.
Business Banking Online Application
Click here, to review further information, see an online demonstration of Business Banking Online or complete an application.
For assistance on Business Banking Online please contact our dedicated helpdesk on 1300 554 004 8am-8pm, Mon-Sat (Sydney time)