Skip to main content
Logo
Identify a payment Support GoCardless
  1. Support Centre
  2. Payments
  3. Chargebacks

Australia PayTo claims process

If your customer who paid via PayTo wishes to challenge the withdrawal of funds from their bank account, it is known as a mandate claim (not a chargeback, the terminology that is used in some of our other schemes).

Within PayTo, there are certain scenarios under which a customer may raise a mandate claim. As with BECS AU, funds reversal is not automatic, again unlike in some of our other schemes.

For reference, the rules around PayTo mandate claims are covered in section 17.10 of the NPP regulations.

There are 4 steps involved in the claims process

  1. If a customer believes they have cause to raise a claim, they do so via their bank

  2. The customer’s bank will then pass on the details of the claim to us via Cuscal, our PayTo banking partner

  3. We then investigate the claim and decide whether to accept or reject it, and we send a message back to the customer’s bank with the results of our investigation

    • If we decide to accept the claim, only then do we initiate a manual funds reversal to your customer from our GoCardless bank account

  4. Any successful claims will then appear as a negative amount against the respective merchant's GoCardless account, and they’ll be balanced out against subsequent collected payments.

 Mandate claims can be raised under the following circumstances

A mandate claim is defined as a claim that a customer’s bank makes on behalf of a customer, in the case of a debited payment that was not authorised by the terms of the PayTo agreement and/or by the customer.

‘Not authorised’ is mostly limited to the following four cases. Claims cannot be raised for other reasons e.g., failure to provide a billing notice is not within the claims scope.

  1. Where there is no record (in the central PayTo Mandate Management System, the MMS) of the customer’s mandate authorisation

  2. If the relevant mandate is suspended or cancelled at the time that the payment request is sent to the customer

  3. Where fraud has occurred which is not already subject to an indemnity claim, regardless of any record held in the MMS

  4. In relation to a mandate that has been migrated from BECS AU to PayTo:

    • If a PayTo payment has been initiated that goes against the authorisation of the original Direct Debit that the migrated PayTo mandate is based on i.e., the terms of the migrated PayTo mandate must match the terms of the original Direct Debit

    • Points 1-3 also apply for migrated mandates

Since all PayTo payments made are off the back of an authorisation, it is unlikely that the outcome would be favourable for the customer who raised the claim, unless it was an exceptional circumstance.

Claims relating to migrated BECS AU Direct Debit Requests (DDRs = mandate)

Where a claim relates to a migrated BECS AU DDR, the claim will be deemed to be substantiated unless there is written evidence of the following:

  1. The customer’s authorisation of the DDR upon which the migrated PayTo mandate is based; or

  2. The PayTo payment which the claim is based upon was in fact authorised by the terms of the migrated mandate i.e., there is no valid basis for the claim

Claims relating to new PayTo agreements

Claims where the customer disputes that a payment was permitted.

Where a claim relates to a PayTo payment made against an authorised mandate, where the customer disputes that the payment was permitted, the claim will be deemed to be substantiated by reference to the mandate record in the MMS.

I.e., if a customer claims that a payment is not permitted in terms of the amount, frequency, or beneficiary, this can be checked against the details of the mandate held in the MMS.

Claims where the customer disputes that a payment was authorised

Where a claim relates to an unauthorised PayTo payment, where the customer disputes either having authorised the mandate, or that the payment was authorised at the time it was taken e.g., because the mandate was suspended or cancelled, the claim will be deemed to be substantiated unless there is evidence that the customer did authorise the payment.

If a resolution cannot be agreed, e.g. the customer’s bank does not agree with the evidence supplied, then the PayTo disputes resolution process may be followed, whereby the claim is referred to the NPP for formal investigation.

Time limit for PayTo claims

PayTo payments can be claimed back up to 7 years after the payment charge date.

Was this article helpful?
  • Promoted articles

    • Credit card payments
    • Bulk importing payments
    • Overview of payment statuses
    • Refund a payment
  • Recently Added Articles

  • Top Articles

API Documentation

Our detailed docs have everything you need to know about using our Payments and Bank account data APIs

View documentation

Need help identifying a payment?

Seen ‘GoCardless Ltd’ on your bank statement? Use our secure tool below to find out more.

Payment Lookup

Need support?

Contact Support

Our support team are available 24/7 to answer any questions you may have.

Quick links

Knowledge base
Visit GoCardless.com

About GoCardless

Legal
Privacy
Security
Blog

Support

Contact support
Complaints
Contact sales

Seen ‘GoCardless Ltd’ on your bank statement?

Identify a payment

GoCardless Ltd, 55 Collins Street, Melbourne VIC 3000, Australia


GoCardless Ltd (company registration number 07495895) is registered as a foreign company in Australia, ABN 17 606 261 74, and holds an Australian Financial Services licence (AFSL), number 478976.





English (NZ) Deutsch English (AU) English (CA) English (GB) English (US) Español Français
Search help articles
https://gocardless.com/en-nz/partner-with-us/
/hc/theming_assets/01JKARFYGKK1KBMBMT9CC1BV8G
Partner with us
Partner with us to shape the future of payments.
custom
https://gocardless.com/en-nz/stories/
/hc/theming_assets/01JKARFYZ7DNZC3PC7YMW92YZ4
Customer Stories
GoCardless helps thousands of businesses with their payments everyday.
custom
https://gocardless.com/payment-lookup/
/hc/theming_assets/01JKARFZAEXTV1RTZ2VZNFPXEW
Identify a payment
If you’ve seen 'GoCardless Ltd' appear on your bank statement
Payment timings, Verification, Xero, 2fa