Direct Debit Processing Schedule

Paydock has implemented a schedule for Direct Debit processing flow to accommodate bank holidays and weekends. Paydock doesn’t influence the rules for Direct Debits, but we do our best to optimise our processing to ensure these transactions are processed effectively and according to the rules in each country, we operate in. This article explains some of the regional conditions for Direct Debit charges for our Australian, New Zealand and US customers.

Acceptance criteria for Australia:

  1. Public Holidays are different across the various states in Australia. Banks do not process when a Public Holiday is combined across the Eastern Seaboard (New South Wales & Victoria), but they do still process during regional Public Holidays. For example, if it’s a Public Holiday in Western Australia only, banks will still process Direct Debits on this day.
  2. There is also a dependency on the time of day that files are uploaded to the banking platform. If the uploaded file misses the banks’ upload cut-off, it will be processed on the following processing day. 
  3. Our Direct Debit processing schedule commences on the next processing day after the charge was made.
  4. Paydock will check the Direct Debit charge status at the gateway within the first 3 business days. On the 4th business day, we will treat the charge as successfully processed unless its status is failed.

Acceptance criteria for New Zealand:

  1. New Zealand has more or less the same clearance times as Australia (3 days including the day of processing). However, answers can come back before 3 days and also during the day. Paydock will check on the Direct Debit status at the gateway within the first 3 days. On the 4th business day, we will treat the charge as successfully processed unless its status is failed.
  2. As in Australia, there is also a dependency on the time of day that files are uploaded - if the uploaded file misses this cut-off time, it will be processed the following processing day. 
  3. Our Direct Debit processing schedule commences on the next processing day after the charge was made.
  4. National Public holidays are the only holidays when Direct Debit payments will be affected, and they will still be processed on the regional holidays. 

Acceptance criteria for US:

  1. The maximum number of calendar days for processing a Direct Debit payment is 10, meaning the payment is considered to be cleared on the 11th day.
  2. Our Direct Debit processing schedule will start running on the next processing day after the charge was made.
  3. Paydock will check the Direct Debit charge status at the gateway after 5 business days. On the 6th business day, we will treat the charge as successfully processed unless its status is failed.
  4. There is also a dependency on the time of day that Direct Debit files are uploaded - if the uploaded file misses the banks upload cut-off, it will be processed on the following processing day. Therefore, the next processing day after the charge was made will be considered as the first processing day.

Processing rules:

Once a Direct Debit payment is created successfully at Paydock, we will take Public Holidays and weekends into consideration when defining the last processing day for this payment. The following rules apply to this schedule:

  1. When a Direct Debit is successfully created in your Paydock account, we will continue to check the payment status at the gateway during the defined period (taking into consideration Public Holidays and weekends), and will set the final charge status (complete or failed) at the end of this period (on the 4th business processing day for Australia and New Zealand or on the 6th business processing day for US) unless we have received a response with a complete or failed status.
  2. Regardless of the time when the charge was created (before or after the bank’s cut-off time), the next processing day after the charge was made will be considered the first processing day.

Here you can find the gateways that support Direct Debit.

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