Direct Debit cancellations operate slightly differently within New Zealand when compared with other Direct Debit schemes we offer. Depending on how the cancellation is actioned, it could trigger an unintended result. As such, it's important to be aware of this in advance so you can best advise your customers if and when required.
Customers are able to cancel their Direct Debit in three ways:
- Directly with their bank
- Requesting cancellation with the merchant they're paying
- Requesting cancellation directly with GoCardless
If requesting cancellation from either the merchant they're paying or GoCardless, the customer's Direct Debit cancellation would then be actioned within the GoCardless system.
If, on the other hand, the customer cancels directly with their bank, the bank will cancel all Direct Debits set up against that merchant's authorisation code.
In this case, if the customer then wishes to set up a new Direct Debit against the same authorisation code within nine months of that action being taken, they are required to provide their bank with a paper authorisation form and cannot be charged for a minimum of ten business days following their new Direct Debit being set up.
As such, we recommend that customers paying through BECS NZ request cancellation of their Direct Debit directly with the business/merchant they're paying, or with GoCardless directly.