What is a Direct Debit

A direct debit (DD) enables another party (the initiator), to take payments from your nominated bank account electronically. 

 

How it works 

Direct debit payments can be for variable or fixed amounts. 

You can set payments to be paid from your Everyday, Everyday unlimited, Everyday Saver, Billpay accounts.

A direct debit set up fee and ongoing transaction charges may apply.

When you are paying bills by direct debit and the amount changes each month (e.g. power or phone bills), the organisation you’re paying needs to let you know how much the payment will be, usually at least 10 days before it comes out of your account. 

 

Setting up a direct debit 

To set up a direct debit payment, you may be asked to: 

  1. Provide written authority: the organisation you will be paying will provide a direct debit form for you to complete and return to them
  2. Verbal authority: if the merchant is a preferred initiator they are able to take your instructions over the phone 
  3. Online authority: if the merchant is a preferred initiator they are able to accept the authority online 

 

What are preferred initiators? 

These are companies that don’t have to send the signed authority form to Unity Credit Union before taking a payment from your account. 

Unity Credit Union will only be made aware of the agreement when the initial DD transaction is initiated i.e. debited from your account. 

Examples are insurance and utility providers, such as power and broadband providers. 

 

How do I change or cancel a direct debit?

To change or cancel an authority, contact the initiator you’re making the payment(s) to and discuss your needs with them, or contact us and we can cancel it for you. 

Please note:  

  • Unity Credit Union cannot ‘suspend’ payments on your behalf 
  • Depending on the timing we may not be able to cancel/block the authority before the next payment is debited from your account. 

 

How do I avoid direct debit fees? 

Sometimes you may not have enough money in your account to cover a payment.  

You need to make sure there are sufficient funds in your account on the day to cover all your scheduled payments (DD & AP’s) or contact the initiator directly to suspend the payment(s). 

Otherwise, the payment may be dishonoured which may result in a dishonour fee being charged, or in some situations the payment will be honoured with a fee charged (depending on your account status and history with Unity Credit Union). 

To view our full fees guide click here.