Direct Debit Processing Rules

Direct debit is a financial transaction in which a person or company withdraws funds from another person’s bank account or credit card. The customer agrees for a business to deduct recurring payments automatically. Withdrawals are transferred through the clearing house (ACH, SEPA, Direct Entry), and the process is convenient due to a single exchange of the customer’s bank information. 

We process Direct Debit transactions in accordance with local banking infrastructure. Paydock handles Direct Debit requests via our APIs and then submits these requests via the relevant Direct Debit rails. Public Holidays and banking capability may impact the timeframe for receipt of funds, but we submit the debit request at the time it is initiated.

1. The Direct Debit is successfully created in your account. Regardless of the exact time, you made the Charge (before or after the bank’s upload cut-off period), the following processing day will be considered the first.
2. We check the Payment Status at the Gateway during a defined period, corresponding to the processing rules of the local banking infrastructure (considering public holidays and weekends but ignoring regional holidays).
3. The Charge status is set to Complete or Failed at the end of the period as mentioned above (e.g. on the 4th business processing day for Australia and New Zealand or on the 6th business processing day for the US) unless the status is received earlier.