In New Zealand, chargebacks are known as Reversals and can apply to individual and multiple payments.
Customers are also able to raise Disputes, which apply to the Direct Debit authorisations themselves, and consequently include all payments taken through it by default.
The customer process
The general customer claim process is as follows:
1. Customer contacts their bank to reverse a transaction.
This must be done in writing, either at their bank branch or if available, via an online form provided by the bank.
2. Customer completes a form (often in paper format, but can also be an online form), providing details on the transaction and the reason for submitting a reversal request.
3. The request 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 balanced out against subsequent collected payments.
Reversal and dispute time limits
Within BECS NZ, Direct Debit payments can be reversed up to 120 days after the charge date.
After this 120 day period, only Direct Debit authorisations can be disputed. This effectively disputes the Direct Debit Instruction/Authority itself and covers all payments collected through that authorisation.