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Everything you need to know about Claims/ Late Dishonours
Everything you need to know about Claims/ Late Dishonours
Updated over a week ago

Direct debit is a cost-effective and easy way to collect payments for the services you offer your customers and with Zepto, it is incredibly secure, reliable and fast. However, there can be situations when we may cancel these direct debits or debit your account to recover funds. In this article we will discuss:

Claims:

Once your customer accepts a DDR and DDRSA, they also have the authority to make a claim for any debits by reaching out to you directly or Zepto or can submit a claim directly to their bank.

Being a third-party provider, Zepto will be contacted by our sponsoring financial institution and will notify us of a claim. Zepto will then take the following steps:

  1. Reach out to you and seek proof of the purchased goods or the services offered to the related customers. (You will need to supply these documents in 72 hours.)

  2. If you would like to dispute these claims, we can forward these to our financial institution.

  3. If you accept the claim request, we will debit your account and will send the funds back to the customer. Every claim request will include the description -

    Claim collection - pr_references or pb_references where the PR/PB relates to the original parent reference of the transaction for which the claim has been made.

To ensure a successful dispute of a DDR Claim in the event it happens, we recommend that you store and have access to the contract or agreement that the customer has engaged in with your company that clearly states the payment terms and conditions. Please ensure you read the reason for the claim and respond accordingly to avoid requests for further information.

If there's a dispute for a transaction but the funds have already been refunded, the you will need to provide the refund details to us.

Late Dishonours:

The debit processing time for some banks can be a bit longer than the agreed debit clearance time which means in some situations, it can take more than 2 days for the bank to get back to us regarding a debit.

If a late dishonour occurs on a transaction, Zepto reserves the right to debit the amount of the dishonoured transaction from your recovery/nominated account.

In such situations,

  1. Our team will contact you via email to supply you with all the relevant information regarding a late dishonour.

  2. Zepto will then debit the funds from your account.

We will send you an email with a password protected spreadsheet from de_disputes@zepto.com.au and send the password separately from npp_disputes@zepto.com.au.

Every Late Dishonour transaction will have the following description -

Late Dishonour - PB.xxx/PR.xxx where the PR/PB relates to the original parent reference of the transaction to which the dishonour relates and can be found in the Zepto dashboard and/or your bank statements. 

Please note, In case of a late dishonour, the status of the debit will change from Cleared to Returned, whereas the state of the credit will still be marked as Cleared.

Common Reasons for Late Dishonour include:

  1. Payment Stopped: The account holder has requested the bank to stop the debits from their account

  2. Insufficient funds: The debtor account has insufficient funds for the debit to be processed successfully

  3. Account Closed: The account holder has closed their account and thus the debit could not be processed successfully

Manual Late Dishonours:

Manual dishonours are a rare scenario and only happen when financial institutions dishonour a transaction after a long time(more than 3 business days after the debit has cleared).

If the value of dishonoured transactions is more than $5000 or more than 20 transactions are affected, the team will reach out to you to confirm the recovery accounts. 

Please note, that the dishonoured transaction amount will be debited as a whole from your nominated recovery account.

The processing of manual late dishonours is similar to that of the late dishonours :

  1. Our team will contact you via email to supply you with all the relevant information regarding a late dishonour.

  2. Zepto will then debit the funds from your account.

We will send you an email with a password protected spreadsheet from de_disputes@zepto.com.au and send the password separately from npp_disputes@zepto.com.au.

Every manual late dishonour can be distinguished in the Zepto dashboard using the description field which should include Late Dishonour Recovery-Bank Outage DD-MON-YYYY

Note: Since manual dishonours are caused due to issues on the OFI level, we receive information on these via emails from the OFI. Since this is a manual process, no webhooks are fired by our system in this case and both the debit and the credit side of the transactions will be marked as cleared on the Zepto system. You will need to manually adjust the transaction states on your end.

To understand the Claims, Disputes and Late dishonours in detail, and how these are managed by Zepto please reach through our article, here.

Feel free to reach out to us by clicking on the blue chat icon or email us directly at support@zepto.com.au.

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