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New Zealand Direct Debit
Nick Dainty avatar
Written by Nick Dainty
Updated over a week ago

Direct Debit is a payment method that many of our customers in Australia, the US, Canada and UK prefer over cards, due to its low cost.

Direct Debit is a bank account payment method that allows you to "pull" funds from a client's bank account, once they have supplied their bank account details.

Fees for Direct Debit payments

  • 1% + $0.30 per payment collected - maximum of $4 NZD.

  • Payments over $3,000 NZD: an extra fee of 0.3% applies on the amount above $3,000 only.

  • No fees for failed payments, disputed payments or issuing refunds.

Enable Direct Debit in Ignition

Begin with setting up payments on Ignition. The payments feature in Ignition allows you to collect Direct Debit or Credit Card payments from your clients, in line with the service prices and billing types defined in your proposals. Learn more about setting up payments here.

To enable direct debit:

  • Navigate Settings β†’ Payment and enable Direct Debit as a default payment method.

You're now able to offer Direct Debit as a payment option when sending a new proposal or using Instant Bill.

You can also pro-actively start to collect client bank account details by using a Payment Method Request.

Direct debit payment clearing times

Expect 3-5 business days from starting a payment collection until funds are in your bank account. Learn more about payment clearing times here.

Also be aware that Direct Debits are not confirmed instantly, unlike card payments. It may take 3-5 days for a payment to fail (for example due to the client account having insufficient funds).

Client experience

Clients will enter their bank account details securely and be asked to supply an email address.

Ignition will automatically send an email to the address supplied, initially to confirm that a new Direct Debit agreement has been set up, and then subsequently at the time of each charge being made.

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