If a customer in New Zealand wishes to challenge the withdrawal of funds from their bank account, this is known as a reversal. Reversals can apply to individual and multiple payments.
Customers are also able to raise disputes against a Direct Debit Instruction (DDI), which challenges all payments taken through a DDI, rather than an individual or subset of payments.
There are 3 steps involved in either process:
- Customer contacts their bank to dispute the payment(s)/DDI
- Customer completes a form (often in paper format, but can also be completed online), providing transaction details and the reason for submitting a reversal / dispute request
- The claim is reviewed by the bank. If accepted, the funds will be returned to the customer's bank and deducted from GoCardless.
This will appear as a negative amount against the respective merchant's GoCardless account and will be balanced out against subsequent collected payments.
Reversal and dispute time limit
Individual or multiple payments can be reversed for up to 120 days after the charge date.
After this 120 day period, only DDIs can be disputed. This effectively disputes all payments collected through the DDI.