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Preauthorized Debit Form Template for Australia

A standardized financial authorization document compliant with Australian banking regulations and consumer protection laws, designed to establish an ongoing direct debit arrangement between a customer (account holder) and a merchant or service provider. The form facilitates automatic recurring payments from the customer's nominated bank account to the merchant's account, incorporating necessary privacy protections, clear payment terms, and cancellation rights as required under Australian law, particularly the Banking Act 1959 and relevant BECS (Bulk Electronic Clearing System) regulations.

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What is a Preauthorized Debit Form?

The Preauthorized Debit Form serves as a crucial financial instrument in the Australian banking system, enabling businesses and organizations to establish automated payment arrangements with their customers. This document is essential when setting up recurring payment arrangements and must comply with Australian banking regulations, including BECS rules and the ePayments Code. The form captures vital information such as account holder details, bank account information, payment specifications, and explicit authorization for the direct debit arrangement. It's commonly used across various sectors for recurring payments such as membership fees, loan repayments, utility bills, and subscription services. The document must incorporate adequate privacy protections and clear terms as required by Australian privacy and consumer protection laws.

What sections should be included in a Preauthorized Debit Form?

1. Account Holder Information: Details of the account holder(s) including full name, contact information, and address

2. Bank Account Details: Financial institution name, BSB number, account number, and account name

3. Payment Details: Specification of payment amount (fixed or variable), frequency, and start date

4. Merchant Information: Details of the business/organization receiving the payments, including ABN/ACN

5. Authorization Statement: Clear statement of the account holder's authorization for direct debits

6. Terms and Conditions: Standard terms governing the direct debit arrangement including cancellation rights

7. Privacy Statement: Statement on how personal information will be collected, used, and protected

8. Signature Section: Space for account holder(s) signature and date

What sections are optional to include in a Preauthorized Debit Form?

1. Variable Payment Authorization: Additional terms for variable payment amounts - include when payment amounts may vary

2. Joint Account Authorization: Additional signature section for joint account holders - include when form allows for joint accounts

3. Service Agreement Reference: Reference to a separate service agreement - include when the debit arrangement is part of a broader service contract

4. Credit Card Authorization: Alternative payment method section - include when offering credit card payment option alongside direct debit

What schedules should be included in a Preauthorized Debit Form?

1. Schedule A - Direct Debit Service Agreement: Detailed terms and conditions of the direct debit service including rights and responsibilities

2. Schedule B - Fee Schedule: Schedule of any applicable fees including failed payment fees (if applicable)

3. Appendix 1 - Cancellation Form: Template form for cancelling the direct debit arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use

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