Account Switching Guide
for Direct Entry Users

On 1 July 2012, APCA introduced changes to direct entry (DE) arrangements to make it easier for consumers to switch their everyday transaction accounts from one financial institution to another.

As part of the changes, when a consumer opens a new account, the new financial institution is obliged to help switch their DE arrangements from the old financial institution.  This includes notifying DE Users of their new account details and of any cancellations to their direct debit arrangements.  DE Users will receive these notifications through their own financial institution.

How does this affect DE Users?

You are likely to see an increase in the number of customer DE notices you receive through your financial institution.  Additionally, some consumers may choose to handle their own DE arrangements and advise you of their new accounts directly.  Whether you receive a DE notice through your financial institution or from your customer, it needs to be acted on promptly.

How will financial institutions notify DE Users? 

A new DE User form has been introduced for this purpose: “Notice of Variation of Account Details (For recurring payments only)”.  This form will be signed by your customer and include your customer’s new BSB and account number.  You will receive this form through your financial institution.
If your customer asks the new financial institution to cancel a direct debit arrangement, you will receive a “Direct Debit Cancellation Request” through your financial institution.  This form will also be signed by your customer.  If you require ongoing payment, you may need to contact your customer directly.  (Examples of both forms are provided.)

What do DE Users need to do to ensure payments are made in accordance with their customers’ requests? 

  • When you receive a “Notice of Variation of Account Details” form, verify your customer’s signature and make the changes promptly to ensure there is no disruption to the customer’s payment cycle.
  • When you receive a “Direct Debit Cancellation Request”, verify your customer’s signature and stop generating the direct debit promptly to ensure payments are not made in error.

Once you have made the requested changes, it is important that you contact your customer and confirm the amended DE arrangements.  

  • If you have any problems verifying your customer’s signature, or have any queries regarding the requests you receive, contact your customer immediately..

For any further information regarding these changes to DE arrangements, contact your sponsor financial institution.