BECS Direct Debit NZ (Practice Better Payments)

Because bank debits can take several business days to confirm, they may not be ideal if you need to deliver services immediately.

⚠️ Bank Debits for Practice Better Payments is currently in an Early Access Program and is not yet available for all users.  

The bank debits supported through Practice Better Payments include ACH Direct Debit (ACH), Pre-Authorized Debit (PAD), SEPA Direct Debit, Bacs Direct Debit (UK), BECS Direct Debit Australia, BECS Direct Debit New Zealand. 

Review the parent article for an overview and links to each respective payment method article. 

In this article:

• BECS Direct Debit NZ
• BECS Direct Debit NZ Processing Fees
• Timing of BECS Direct Debit NZ Payouts (deposits)
• Storing BECS Direct Debit NZ
• BECS Direct Debit NZ Notifications
• BECS Direct Debit NZ Mandates
• Cancelling a BECS Direct Debit NZ Mandate/DDA
• Disputed BECS Direct Debit NZ
• Refunding BECS Direct Debit NZ
• Disabling BECS Direct Debit NZ
• Re-enabling BECS Direct Debit NZ

BECS Direct Debit NZ

BECS Direct Debit NZ allows Practice Better practitioners in New Zealand to collect payments directly from clients’ New Zealand bank accounts.

This payment method is ideal for large or recurring charges, helping to reduce transaction costs compared to credit cards and increasing revenue by offering clients a familiar and trusted payment option.

BECS (Bulk Electronic Clearing System) in New Zealand is the network that facilitates the exchange and settlement of bulk electronic payments between banks. BECS in New Zealand is administered by Payments NZ. 

BECS Direct Debit NZ Processing Fees

Timing of BECS Direct Debit NZ Payouts (deposits)

Standard payouts from BECS Direct Debit transactions will be deposited into your business bank account 2 business days from the initial transaction date. 

Here’s a visual representation of how settlements work for BECS Direct Debit transactions:

T = Transaction date

+# = Business days since transaction date 

💡 Pro tip: You can view all your payouts from the Payments & Disputes section of your Practice Better Payments Dashboard or through your Stripe dashboard. 

Storing BECS Direct Debit NZ

There are three ways to securely store your clients’ BECS Direct Debit details for future payments:

Method 1: Require billing information at booking:

• Edit Service > Advanced Options > Require billing information when clients book this service/package.

Method 2: Opt to save billing information for future payments on invoices:

• Invoice Editor > Payment Options > Save billing information for future payments. 

Method 3: Ask your clients to enter their banking details in the Client Portal.

• Client Portal > Invoices & Billing > Billing Information. 

BECS Direct Debit NZ Notifications

The New Zealand BECS Direct Debit scheme requires that you notify your clients by email within 5 days after establishing a mandate (Mandate confirmation email), and on the day of the debit each time you debit their account (Pre-debit notification email). By default, Stripe automatically sends these emails to the customer.

View the information included in the mandate confirmation email and the pre-debit notification email. 

BECS Direct Debit NZ Mandates

Before you can take payments directly from a client’s bank account, you need their permission. This permission is called a mandate, and for BECS Direct Debit NZ these mandates are called Direct Debit Authorities or DDAs, which explain the terms of the payment. 

When you process BECS Direct Debit NZ payments through Practice Better Payments, your clients will automatically be shown the required DDA during checkout. This appears only the first time they add their bank account. Clients must review and accept the DDA before completing their payment using this method.

Your clients can cancel their DDA at any time by contacting either you or their bank. Once a mandate is cancelled, any future debit requests associated with it will no longer be valid. To resume accepting BECS Direct Debit payments from that client, a new mandate must be established. See Cancelling a BECS Direct Debit NZ Mandate/DDA for step-by-step instructions. 

Cancelling a BECS Direct Debit NZ Mandate/DDA

If your client contacts you to request you cancel their existing BECS Direct Debit NZ Mandate or DDA, confirm their name and mandate reference number, and then follow these steps: 

1. Log in to Practice Better. 
    
2. Click on your Settings (gear icon) and select Payments Dashboard.
    
3. Click View in Stripe near the top-right.
    
4. In Stripe, go to Customers.
    
5. Search for the client’s name.
    
6. Delete the existing BECS Direct Debit NZ payment method linked to that client.

Disputed BECS Direct Debit NZ

New Zealand bank account debits include a dispute process that allows account holders to challenge payments.

Your clients can dispute a BECS Direct Debit NZ payment:

• Within 9 months of the first payment if they are not reasonably satisfied that the Direct Debit Authority (DDA) authorizes the debit.
• Within 120 days of a payment if:
  • You did not send a pre-debit notification, or
  • You sent a pre-debit notification, but the amount or date of the debit differs from what was specified in the notice.

If the client’s bank upholds the dispute and requests a return of funds, Stripe will immediately deduct the disputed amount from your Practice Better Payments account balance.

After a dispute, check the status of the client’s Bacs Direct Debit NZ mandate to confirm it has been cancelled. If the client wishes to continue working with you and paying by Bacs Direct Debit, you’ll need to collect a new mandate. See Cancelling a BECS Direct Debit NZ Mandate for detailed instructions.

Refunding BECS Direct Debit NZ

Refunds for New Zealand bank account debits must be issued within 90 days from the date of the original payment. 

Key details:

• Refunds are free of charge, but processing fees from the original payment are non-refundable.
• Refunds typically take 3–5 business days to process, and funds usually reach your client’s account within 5 business days.
• BECS Direct Debit NZ refunds appear as credits in your client’s bank account, showing the original payment’s statement descriptor rather than being labelled explicitly as a refund.

Important considerations:

• Clients can still dispute a payment through their bank even after you’ve issued a refund. This may result in two credits for the same payment (one from your refund and one from the bank’s dispute process).
• To reduce the risk of confusion or duplicate credits, only issue a refund when:
  • The customer is trusted and verified
  • You’ve confirmed with the customer that you’re processing the refund
  • At least 2 business days have passed since the original payment

Disabling BECS Direct Debit NZ

If you do not wish to accept BECS Direct Debit NZ transactions, you can disable this payment method by following these instructions:

1. Log in to Practice Better. 
    
2. Click on your Settings (gear icon) and select Payments Dashboard.
    
3. Click View in Stripe near the top-right.
    
4. After successfully logging in to Stripe, click the Settings (gear icon).
    
5. Select Payments from your Settings page.
    
6. Go to the Payment methods tab.
    
7. Locate the payment method (ie. Bank debit) in your list and click on it to expand the payment method panel. 
    
8. Click Turn off on the payment method you no longer want to accept.

Re-enabling BECS Direct Debit NZ

If you have disabled BECS Direct Debit NZ Payments and need to re-enable this, follow steps 1-7 above, and click the button to Turn on your desired payment method.