Dealing with Unauthorised Direct Debits from your Credit Card

How to deal with unauthorised direct debits on your credit card

It is true that direct debits can help you out with many different expenses. However, there are some cases where you might deal with an unauthorised debit. Sometimes this can be from a system error through the biller.

It could also occur in the event that a debit was cancelled and that request has yet to be honoured. Sometimes it might be from your inability to correctly handle a cancellation request. Either way, the debit could end up being expensive and tough to pay off in a number of cases.

Fortunately, it will not be too difficult to deal with any of these credit card problems. Here are few things to do if you want to get an unauthorised debit handled.

What to do with unauthorised direct debits

    • Check with your biller

      The first thing to do is to talk with your biller. A company that has billed you the money should be given the opportunity to correct a mistake if it does occur. However, you might not be able to get a debt controlled in the event that the company in question is not willing to be very cooperative with you. It will help to check with a company to see what it should be doing with your money in mind.

    • Call your card provider

      The company that issued your credit card should be checked in the next process. This is provided that the biller was not able to get a refund onto your account.

      This should especially work in the event that your card's debit caused any overdraw penalties or any other type of penalty. You will need to resolve this problem to ensure that you will not have to pay anything extra in the process. You will also need to get the issuer to have the overdrawn file off of your name before it can reach your credit report.

    • A chargeback can work

      You might need to get chargebacks on direct debits in the next point. You can do this if you have records of your contact with your biller and card provider. You can use these records to confirm a case where your debit was unauthorised. This can help you to get a chargeback.

      The chargeback will work on your credit card if your biller is not going to refund you after the unauthorised debit was charged. This can also be used if the biller is not getting your refund handled over a long period of time. You can have an easier time with getting this to work if you are truthful in the process and have gathered plenty of information to prove that a debit was unauthorised.

These are points to see if you want to get an unauthorised debit off of a card. This can be used to make sure that the only direct debits that you are going to be charged are ones that are legitimate and will be correct. You should not have to be charged for things that you did not ask for. After all, some unauthorised charges could end up being very difficult to handle unless things to do if you want to get an unauthorised debit handled you get them corrected.

How to cancel a direct debit - guide by MoneySmart.gov.au

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6 Responses

  1. Default Gravatar
    natApril 11, 2017

    American Express just direct debited the entire amount owing on my credit card from my linked savings account. I used to have the D/D amount as the minimum monthly repayment. I gave no express written permission to change this, how can they do this and leave me with no cash? I do not read every single letter they send out to me – in fact I hadn’t used the card for around 3 – 4 years! They are not going to refund me the +$1,500 they took.

    • Staff
      HaroldApril 13, 2017Staff

      Hi Nat,

      Thank for your inquiry.

      Our company finder.com.au is a financial comparison website and general information service designed to help consumers to make a better decision. Please note we do not represent any company we feature on our pages.

      It would be nice if you can coordinate this matter directly with your bank. To settle the issue and ask them what are the available options for you based on your current circumstances.

      Cheers,
      Harold

  2. Default Gravatar
    BernadetteAugust 12, 2016

    Hi I have just found out that a hotel i booked online for a couple of months away have already taken out there full fee of 1600 dollars out of my visa debit card which i only used to hold the booking, My question is how did the bank process this and is this legal as my visa debit savings acc balance was zero dollars at time

    • Staff
      MayAugust 16, 2016Staff

      Hi Bernadette,

      Thank you for your question. Please note that you’ve come through to finder.com.au we are an Australian financial comparison website and general information service. We are not financial experts and so can only offer a generalised advice.

      Just to confirm, have you already checked with the hotel why they have debited the amount from your debit card if you just reserved the booking? It is also possible that there was an overdraft transaction on your debit card when the hotel debited $1,600 from your debit card. It sometimes happens to your debit card when you least expect it. So it’s best that you also have to get in touch with your bank to verify the transaction.

      I hope that could help.

      Cheers,
      May

  3. Default Gravatar
    PeterJanuary 13, 2015

    I made an initial personal credit card payment to a office rental provider on behalf of a company that I own with other shareholders. It was explained that future billings would be made directly from that company . The rental provider has used my credit card details to infrequently make payments to the company’s rental account despite being advised to cease such actions. Is there legislation that I can utilise in these circumstances? I have had to cancel a low interest credit card to prevent future drawings.

    • Staff
      JonathanJanuary 15, 2015Staff

      Hi Peter,

      Thanks for your question,

      In the event of unauthorised transactions on a credit card, the first order of action is to check with the biller/ company that has billed you the money to provide them the opportunity to correct a mistake if it does occur. The next step is to contact the credit card issuer to resolve the issue, this is provided that the biller was not able to get a refund onto the account. The credit card issuer can stop any further unauthorised transactions and will take the necessary action to rectify the issue.

      In terms of getting money back the ASIC Epayments Code sets out the rules for determining who pays for unauthorised transactions. Users of electronic payment facilities in Australia are protected by the ePayments Code. This code regulates consumer electronic payments, including ATM, EFTPOS and credit card transactions, online payments, internet and mobile banking, and BPAY. It also provides a full list (ePayments Code subscribers’ list) of all banks, building societies, credit unions and even some payment services that have signed up to the ePayments code. The ASIC Epayments Code is available on the ASIC Australian Government website, and provides an online form to officially lodge a complaint with ASIC.

      I hope this has helped!

      Cheers,

      Jonathan

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