The customer claims / payment returns process gives customers protection against unauthorised payments being collected from their account.
Please note: A chargeback / customer claim is known as a Reversal in the Becs (NZ) scheme.
A claim can be made under the following conditions:
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If a customer wishes to raise a claim against one or multiple payments.
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A customer can also choose to dispute all payments collected under the authorisation.
How a customer can make a claim:
In either case, the customer will need to contact their bank to dispute the payments / the authorisation. They will be asked to complete a form (often in paper format, but can also be completed online) providing more details about the claim. The claim is then reviewed by the bank and if the request is granted, the funds will be returned to the customer’s bank account.
Claim time limit:
Payments can be reversed for up to 120 days after the charge date.
After the initial 120 day period the customer will only be able to dispute the Direct Debit authorisation, which will dispute all payments collected through the authorisation.
Guide
Direct Debit customer protection
There are two different processes depending on what the customer wishes to dispute.
If a customer wishes to challenge the withdrawal of funds from their bank account it’s known as a reversal. This can apply to individual or multiple payments.
If a customer wishes to challenge the Direct Debit authorisation, they can raise a dispute. A dispute challenges all payments taken through the authorisation.