Direct Debits

When you set up a direct debit, you are allowing a service provider, such as your private health insurer or your gym, to automatically withdraw money from your account at set times to pay your bills or make your loan repayments.

Direct debits can be a good way to manage your money, but they can become a problem if you don't have enough money in your account or you need to cancel the direct debit.  

You can fix your direct debit at a certain amount, e.g. $70 every period, or opt for a variable amount, where the merchant will deduct the exact amount of each bill. If you choose a variable payment make sure you always check your bill before the amount is deducted so you know how much is being taken out.

You can also choose if the direct debits come out at regular intervals or set dates. Contact your service provider to discuss your options.

If you have set up your direct debit for a fixed amount and date, make sure it occurs at a time when you know you will have enough money in your account to cover the bill. For example, on payday.  

While a direct debit is controlled by the company you are dealing with, you are able to start, stop and change a periodic payment yourself.

A periodic payment can be set up through Online Banking.

Before you set up a direct debit, make sure you trust the direct debit service provider. After all, you are allowing them to take money from your account. We also recommend that you read their terms and conditions so that you understand how the direct debit works, applicable fees and charges, and how you cancel the direct debit when you no longer need it.

Direct debits are not a “set and forget” exercise. Make sure that you check your accounts and bills on a regular basis.

Regular reviews of your account will also ensure that you have enough money available to cover the direct debit. If you don’t, a direct debit dishonour will appear on your account and a fee will be charged by RSL Money. There may also be fees charged by the merchant. 

For more information about this service or if you’d like to set it up, call us on 1300 000 775.  

If you decide to cancel your direct debit, you should notify us as soon as possible. This can be done in writing via post or over the phone. Make sure you tell us what direct debit(s) you want cancelled and the date payment should cease. We can provide you with confirmation once the direct debit has been cancelled.

Once we have received your cancellation instructions, we are obliged to make sure no more payments are debited from your account.

While we will handle cancelling your directs on our end, it's also a good idea to notify the direct debit service provider in writing and a keep a copy of the notice you send.

There are different requirements for cancelling a direct debit that is linked to a credit card. When cancelling these types of direct debits, you need to write to us and the merchant to stop the direct debit.

Templates are available to help you cancel a direct debit with ease. Please contact us on 1300 000 775 if you would like us to send you a copy. 

We also recommend that you keep a copy of the letters/emails for your records.