Australian Bond Exchange

To enable direct debit for all transactions, simply complete the online Direct Debit request form which includes the terms and conditions of the service.

Overview

Settling your trades by Direct Debit is our preferred method to enable an easy, efficient, and seamless trading experience for you.

Direct Debit is a widely accepted, easy and free service for settling your transactions that eliminates the manual processing that you would otherwise have to do. No more having to remember to pay, visit or log into your bank, initiate the transfer, and hope the amount is right and going to the correct account. We take care of it all for you.

It is also operationally efficient for ABE. Not having to chase late payments or reconcile amounts keeps our costs down and this benefits you as we can keep our fees low.

You still need to ensure you have sufficient funds in your account and it is good practice to check your account after settlement to confirm the correct amount has been debited. The amount debited from your account should be the settlement amount shown on your trade confirmation. If there are any discrepancies you should in the first instance, contact your ABE advisor or ABE settlements.

More information on ABE’s Direct Debit service is provided in our Direct Debit FAQ below.

Direct Debit FAQ

What is Direct Debit?

Direct Debit is a settlement method that involves you authorising a standing settlement instruction to ABE to automatically transfer funds from your nominated bank account on the day of settlement of your trades (using the BSB and account number you provide), in accordance with the Direct Debit Request terms and conditions.

How do I set up Direct Debit

Only bank accounts that are eligible for direct debit transactions can be nominated by you. Confirm with your financial institution that your account is eligible for direct debit transactions. If not, consider opening / nominating an alternate account that is. Otherwise, you will not be able to take advantage of ABE’s direct debit service. Nominating an account that is not eligible for direct debit transactions may result in bank fees for settlement failure being passed on to you.

Once you have confirmed that your account is eligible for direct debit transactions, to enable direct debit for all transactions with ABE, simply complete and sign the Direct Debit Request Form which includes the terms and conditions of the service.

How does Direct Debit work?

On the day of settlement (stated on your trade confirmation), we will instruct your bank to transfer the settlement amount to our client trust account. There is nothing you need to do on that day, and there is no extra charge.

It is your responsibility to ensure that you have sufficient available funds in your nominated account on the day of settlement, and that your bank allows direct debit transactions on the account you have specified.

Why should I use the Direct Debit service?

Using ABE’s Direct Debit service ensures:

  • you will avoid potential fees or penalties arising from late or forgotten payments.
  • hassle-free funds transfer as we handle the entire process, freeing up your time.
  • you do not need to make multiple settlements to get around your bank-imposed funds’ transfer limits on your account.
  • you no longer have to worry about transferring to the wrong account or for the wrong amount.
  • where transaction fees are charged by your account provider, you could save on those fees.

Do account transfer limits impact your direct debit arrangements?

That’s one of the benefits of direct debit! They are not limited by your account transfer limits and no changes are needed to be made for this to occur.

What if I need to make a change to my Direct Debit details?

To make a change to your Direct Debit payment details you will need to contact us directly. This must be done before your next transaction is due to settle.

How can I cancel a Direct Debit?

Contact us to request cancellation of your direct debit request, and if needed, block any further payments.

Please note, cancelling your direct debit does not cancel the payment of coupons. Payment of coupon to you will continue as normal.

The online form doesn’t work, do you have a PDF version?

Download and manually fill out the PDF, sign and sent it back to us. You can find the downloadable PDF Direct Debit Request Form here.

What happens if I have insufficient funds in my account to cover the settlement amount?

It is your responsibility to ensure that you have sufficient available funds in your nominated account when payments are due to be withdrawn. While your bank is under no obligation to do so on any particular occasion, it may permit you to overdraw your account by allowing a Direct Debit payment to occur even if there are insufficient funds in the account. Moreover, your bank may charge you a dishonour fee if there are insufficient available funds in your account to cover the amount of the direct debit. You should contact your account provider to obtain information on their fees and charges in the event of insufficient funds to cover direct debit transactions.

If you are unable to ensure sufficient funds will be available on the settlement date, please contact us ASAP prior to the scheduled settlement date to discuss alternate payment options.

What protections do I have in relation to fraudulent transactions?

There are several regulatory, legal and contractual obligations on ABE that provide a control framework which significantly reduces the likelihood of fraudulent transactions.

  1. Under its Australian Financial Services License (AFSL 484453), ABE has obligations, amongst other requirements, to do all things necessary to ensure that the financial services provided by us are delivered efficiently, honestly, and fairly, and to establish and maintain adequate risk management systems.
  2. Under the Client Services and Custody Agreement between ABE and you, ABE is obligated, amongst other things, to:
    1. act honestly and in good faith,
    2. always maintain proper internal control structures and compliance systems,
    3. reimburse you for all losses, liabilities, damages, and amounts paid in settlement directly resulting from or arising out of any breach of the Agreement, or any wilful misconduct, negligence, or fraud of ABE or any of its officers, employees, or related entities.
  3. ABE’s robust internal processes, procedures and control environment ensure the accuracy of and security over client information used in account set-up, automation of payments, and segregation of duties between those responsible for scheduling payments and those authorising them.
  4. ABE is a member of the Australian Financial Complaints Authority (AFCA member number 38237). If you are unhappy with the way any dispute has been handled by ABE, or its outcome, you can submit a complaint to AFCA. As an independent and impartial organisation, AFCA’s role is to assist consumers and small businesses to reach agreements with financial firms about how to resolve their complaints.

 

Where can I find more information on Direct Debit?

Further information on using direct debit, along with your rights and protections can be found at the following links:

https://moneysmart.gov.au/banking/direct-debits

https://financialrights.org.au/factsheets/getting-help/