Switching FAQs

• What is this service?
• What do I need to do to switch my regular payments?
• Is there a cost for using the service?
• What is a direct debit?
• What is a direct credit?
• What is a periodic payment and how is it different to a direct debit?
• Does the switching service help me with closing my old account?
• What should I do if a payment has not been switched?
  
• What is a BSB?
• What is a scheme card?
• What is a ‘regular payment Arrangement’?
• What are the benefits of Regular Payment Arrangements?
• What are my responsibilities with Regular Payment Arrangements?
• How do I cancel a Regular Payment Arrangement?
• What if my card number and/or expiry date changes?

What is this service? 

CUA has developed a service to make it easier to switch your accounts to CUA and transfer your regular payments (salary, direct debits, direct credits, etc.) to your CUA account.

What do I need to do to switch my regular payments?

1. Ask your current financial institution for an account switching statement
2. Complete and sign the direct debit and credit forms
3. Send them to us and we will organise for your regular payments to be transferred to your new CUA account

Is there a cost for using the service? 

No. This service is free to CUA members.

What is a direct debit?

Direct debits are payments organised to automatically be debited from your account on a regular basis. Examples of direct debits include:

Handy hints

• Working through old account statements will assist you to identify your regular direct credits.
• Keeping your existing account open until all credits are being received via CUA will ensure you continue to receive your income in a timely manner.
• If you receive Government payments, changing payment instructions can easily be done over the phone in most instances.

What is a direct credit?

Direct credits are payments organised to automatically be credited to your account on a regular basis. Examples of direct credits include:

Handy hint

• Working through old bills and account statements will assist you to identify your regular payments.

What is a periodic payment and how is it different to a direct debit?

Periodical payments are recurring payments or transfers that you authorise your financial institution to make on your behalf from your nominated account. An example of a direct debit is a home loan or personal loan repayment.

Direct debits are arrangements made between a customer and a business that authorise that business to deduct agreed amounts from a nominated account. An example of a direct debit is the monthly deduction of a gym membership.

You need to arrange with your previous financial institution to cancel any periodic payments from your previous account before closing that account.

Does the switching service help me with closing my old account? 

No. Most financial institutions require customers to visit a branch to close their account.

What should I do if a payment has not been switched? 

If a regular payment has not been switched, you should contact the company you have the payment arrangement with.

What is a BSB?

A BSB is a six digit number that identifies banks and branches within Australia. You will need to include this number if transferring money between your accounts or to a third party.

What is a scheme card?

The term “scheme card“ includes any Visa or MasterCard credit card or debit card issued by your financial institution and scheme charge card issued by American Express or Diners Club International.

What is a ‘Regular Payment Arrangement’?

Regular Payment Arrangements can be either a recurring payment or an instalment payment. A Regular Payment Arrangement is an agreement between you (the cardholder) and a merchant in which you authorise the merchant to bill your card account at regular intervals (e.g. monthly or quarterly) or at intervals as agreed by you. The amount may differ or be the same for each transaction.

An Instalment Payment represents an agreement between (the cardholder) and a merchant in which you preauthorise the merchant to bill your card account with a fixed amount at predetermined intervals for a predetermined time.

Examples:

Recurring Transaction: You may ask your local gymnasium to charge your monthly gym membership fee to your credit card each month.

Instalment Payment: You may have purchased a new television from your local appliance store and are being billed by the merchant for a fixed amount in multiple periods until a defined date.

What are the benefits of Regular Payment Arrangements?

There are many benefits for cardholders who set up regular payments including:

• Ensures timely payments to the merchant
• Saves you time as the payment is processed automatically
• Saves you money as you do not have to pay for cheques, money transfers or postage, nor will you be liable for late fees.

What are my responsibilities with Regular Payment Arrangements?

Regular Payment Arrangements are an agreement between you (the cardholder) and the merchant. You should keep a record of all Regular Payment Arrangements you have established with merchants and store in a safe place. A template for recording your Regular Payment Arrangements is available from the Australian Payments Clearing Association website. Use the Australian Payments Clearing Association's regular payments template to record all your regular payments.

You are responsible for notifying the merchant when your account details change, including a change in card number and/or change of card expiry date. Either contact your merchant by phone, mail or internet and follow their instructions; complete a Change in Account Details letter (PDF File, 20.7 KB) to your merchant. We recommend you keep a copy or a record of any Change in Account Details letter sent to your merchant and your earlier Regular Payment Arrangements. This correspondence will be required if your merchant does not comply with your request in a timely manner and you decide to dispute any incorrectly charged regular payments.

How do I cancel a Regular Payment Arrangement?

You must contact your merchant and request they cancel your Regular Payment Arrangement. Be aware that you may be required to provide alternative payment details for the goods and/or services being provided.

If after a reasonable time, your merchant fails to cancel your Regular Payment Arrangement you may contact your financial institution for assistance.

Note that closing your scheme card account does not automatically cancel your Regular Payment Arrangements on that scheme card account. You must contact the merchant to either cancel the Regular Payment Arrangement or provide replacement cards details for future payments.

What if my card number and/or expiry date changes?

If you have provided a merchant with your card number for a Regular Payment Arrangement and your card number and/or expiry date changes then you must contact the merchant to advise them of the new card details. Failure to advise the merchant of these changes could result in the cancellation of goods and/or services (e.g. cancellation of your car insurance policy).