Overview

Biz Core is equipped with an integrated system for obtaining signed direct debit authority when creating payment agreements, or adding a new payment source. However, subscribers also have the option of gathering recorded verbal direct debit authority when initiating a direct debit agreement, or updating the payment source details on an existing agreement. It is important to note that this process must be conducted externally from Biz Core, adhering to specific legal requirements to ensure the obtained consent is valid. This guide will outline the step-by-step procedure and the subscribers legal obligations for gathering recorded verbal consent.

Verbal Direct Debit Authority Rules

In order for a verbal direct debit authorisation to be considered valid one must ensure that several criteria are met:

Identifying the Customer

As with electronic Direct Debit Requests (DDRs), when establishing verbal DDRs the business needs to ensure the person providing authority is actually the customer and/or owner of the account that will be debited. At the outset of any phone communications, it is essential to verify the customer’s identity to ensure they are the correct individual. Request the following information from the customer:

• Full Name

• Address

• Date of Birth

This step is crucial for basic security purposes and to comply with regulatory requirements.

Electronic Identity

Companies who establish a verbal DDR must still create an accurate electronic identity for their customer, as a minimum requirement their full name, and either residential address or date of birth need to be recorded. This can be done within Biz Core, when creating the direct debit agreement, ensure the mandatory details are stored on their customer record.

Recording Phone Call

Recording and storing phone calls for verbal DDR authorisation is standard practice, as the recording will need to be provided in the event of a transaction dispute being opened. However it is essential to be aware of the legalities surrounding call recording, as they may differ by state. It is best practice to notify the customer that the call is being recorded. This can be done at the outset of the phone call, for example:

Business: Thank you for calling <Company Name>. Please note that this call may be recorded for training and quality assurance purposes.

In some cases, recording the phone call may commence specifically for the purpose of gathering verbal direct debit authorisation. For example:

Business: To proceed with setting up your direct debit agreement, this call will now be recorded.

Scripting of Phone Call

The below scripting will only cover the requirements for establishing verbal direct debit authority. The remainder of the phone call can be tailored to the companies internal customer service guidelines.

Section A

Start Recording (if not recording already)

Business: To begin setting up this direct debit agreement we need to gather some personal details, could you please confirm your full name, date of birth, phone number and email address.

Customer: <confirms details>

Business: We need you to provide the details for the bank account you are nominating to be debited:

<record the following details as the customer supplies them>

• What is the Financial Institution?

• What is the Account Type?

• Who is the Account Holder?

• What is the BSB?

• What is the Account Number?

By agreeing to this direct debit facility, you are verbally authorising FSoft Pty Ltd, BECS number 503761, on behalf of <Business Name> to debit your nominated account in the name(s) of <name of account holder(s)>, <bank name>, <BSB>, <account number>, through the Bulk Electronic Clearing System.

<Business: If this is a joint account please confirm that you can sign singly>

If Yes: Continue with Section B Below

If No: Advise customer that the other account owner(s) need to consent to the direct debit agreement via phone.

Section B

Business: Today, <date>, you have agreed to pay <dollar amount>, <frequency> which will be debited from your bank account on or around <debit date> of each <frequency>, or the business day before or after if this falls on a weekend or public holiday. It is your responsibility to have sufficient funds available in your account on or around the <debit date> of each <frequency> to ensure the payment can be debited.

You understand that FSoft Pty Ltd will debit your account in accordance with the payment agreement between you and <Business Name> and that both parties are bound by the terms and conditions of the Direct Debit Service Agreement, which we will email to you within 7 business days.

Are you happy to proceed with these payment(s) being debited from your account?

Customer: Yes/No.

<if Yes>

Business: I can confirm this agreement has been created and authorised, with the reference number <BCPXXXXXX>

End Recording

Example Phone Call

Below is an example phone call of a business establishing a verbal Direct Debit Authorisation:

Sending Direct Debit Service Agreement Terms and Conditions

After creating a direct debit agreement, the Service Agreement should be made available to the customer, below is the Biz Core Service Agreement Terms and Conditions that can be sent to the customer:

Ensure to replace the following Tokens with the relevant information for your subscription:

• {Text.SubscriberTradingName}: Input your company’s trading name.

• {Text.SubscriberABN}: Input your company’s ABN.

• {Text.DirectDebitFee}: Input the Direct Debit Transaction Fee (if this is absorbed by your business, set as $0.00).

• {Text.PayDishonourFee}: Input the Dishonour Fee (if this is absorbed by your business, set as $0.00).

Once the Terms and Conditions is updated to contain the applicable information for your subscription, convert it to a PDF file before sending to the customer. It is a requirement that the Direct Debit Service Agreement Terms and Conditions is provided in an unalterable format, such as PDF.

Uploading Recording to Agreement Record

The verbal Direct Debit Authorisation recording should be saved and uploaded to the Agreement Record in Biz Core. It is a requirement to store the details of the DDR for 7 years, and this authorisation must be available to be supplied in the event of a transaction dispute. Ensuring this recording is available to Biz Core will mean that funds will not have to be returned to the customer, and recouped from your settlement.