Understanding Direct Debit Clearance Around Public Holidays
We've put together this guide to help clarify how Zepto handles Direct Entry processing during public holidays.
Key Principle: Banking Days and Processing Time
In Australia, we use the Bulk Electronic Clearing System (BECS) for direct debits. BECS only processes transactions on "banking days." A banking day is any day that is not a:
NSW Public Holiday, National Public Holiday or Bank Holiday: https://www.nsw.gov.au/about-nsw/public-holidays
Weekend: Saturday or Sunday.
Our standard direct debit processing time is T+2 banking days, meaning it typically takes 2 banking days for a debit to clear after it's submitted. However, public holidays can extend this period.
How Public Holidays Affect Clearance:
1. National Public Holidays (Impacting All States)
If a public holiday applies to all states and territories (National Public Holiday), then it is not a banking day.
Impact on Processing: If a National Public Holiday falls within the T+2 processing period, the clearance will be extended.
Clearance Time: Expect a T+3 banking days clearance period in such cases.
Even if Due on the Holiday: If your direct debit is due to clear on a National Public Holiday, it will be processed on the next banking day, resulting in a T+3 overall clearance.
2. Other Public Holidays and Bank Holidays
If a public holiday applies to only some states or territories (e.g., a NSW public holiday or a bank holiday specific to a state).
Impact on Processing: While the system continues to process, the overall clearance can still be affected if the public holiday falls on one of the processing days.
Clearance Time if Due on Holiday: If your direct debit is due to clear on a state-specific public holiday, it will still be marked as cleared on that day.
Clearance Time if Holiday is a Processing Day: However, if a state-specific public holiday falls on one of the processing days (i.e., day T+1 or T+2), the clearance time will extend to T+3 banking days.
National Public Holiday Example:
NSW/Bank Holiday Example:
Feel free to reach out to us by clicking on the blue chat icon or email us directly at support@zepto.com.au if you have any further questions.