In Canada, customers are able to claim (chargeback) payments collected from their account through the PAD Direct Debit scheme by making a claim for reimbursement with their financial institution.
A customer can make a claim to their bank for reimbursement under the following conditions:
- The Pre-Authorized Debit payment was not taken in accordance with the Pre-Authorized Debit agreement; or
- The customer revoked the Pre-Authorized Debit agreement; or
- Appropriate confirmation or notification was not given.
The customer process
The general customer claim process is as follows:
1. Customer contacts their bank to [re]claim a transaction. Depending on whom the customer banks with, they may need to complete an electronic reimbursement claim or do so within their bank branch.
2. Customer completes an electronic reimbursement claim or requests reimbursement from within their bank branch (this is dependent on whom the customer banks with), and provides details on the transaction and the reason for submitting a claim.
3. The claim is reviewed by the bank and the funds restored to their bank account.
This will then appear as a negative amount against the respective merchant's GoCardless account and balanced out against subsequent collected payments.
Claim time limit
Within PAD, Direct Debit payments can be claimed back up to 10 days after the charge date for business customers and within 90 days of the charge date for individual customers.