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Customer Recourse

In this section, we look at customer recourse.

Customer recourse and refunds

Under ACSS rules, customers can request a refund for Pre-Authorized Debit payments in certain circumstances. It’s important to understand this process, although in reality only a very low percentage of payments receive refund requests.

Each Pre-Authorized Debit agreement must include a recourse statement. This tells the customer about their recourse rights if a payment is not compliant.

A customer can claim reimbursement under the following circumstances:

  1. Payment was not taken in accordance with the agreement

  2. The customer revoked the Pre-Authorized Debit agreement

  3. The customer did not receive appropriate confirmation or notification before payment was taken

The reimbursement rules differ depending on whether the claim is coming from a business customers or an individual. If the former, they must claim within 10 business days. If the latter, they must claim within 90 calendar days of the date the payment left their account.

In addition, the customer’s bank may require them to submit a reimbursement claim. Under ACSS rules, the customer’s bank must reimburse the customer for the amount of the claim and return the Pre-Authorized Debit. If your organisation disputes the claim, both you and the customer will need to address the issue outside of ACSS rules.

For Cash Management PADs and Funds Transfer PADs, banks aren’t required to provide recourse, except where a PAD agreement doesn’t exist. Despite this, the customer’s bank may choose to provide recourse anyway.

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GoCardless Ltd., Sutton Yard, 65 Goswell Road, London, EC1V 7EN, United Kingdom

GoCardless (company registration number 07495895) is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017, registration number 597190, for the provision of payment services. GoCardless SAS (23-25 Avenue Mac-Mahon, Paris, 75017, France), an affiliate of GoCardless Ltd (company registration number 834 422 180, R.C.S. PARIS), is authorised by the ACPR (French Prudential Supervision and Resolution Authority), Bank Code (CIB) 17118, for the provision of payment services.