Direct Debits & Electronic Transfers

Direct entry is a convenient, safe and reliable way to send and receive payments.

The system is commonly used by businesses to make recurring, automated payments to and from everyday transaction accounts. These include salary and welfare payments (direct credits), insurance premiums and utility bills (direct debits), and internet (Pay Anyone) banking services.

To make and collect payments, a business needs to be approved as a direct entry user by a financial institution. To set-up direct debit arrangements, customers complete a Direct Debit Request (DDR) authority with the business that will be collecting payments from their account.

We coordinate the rules and processes for direct entry payments through the Bulk Electronic Clearing System (BECS).

The Bulk Electronic Clearing System (BECS) is Australia’s primary system for account-to-account (A2A) payment.

The direct entry rules include how financial institutions can help customers with their direct debit arrangements by:

acting on any request to stop, cancel or amend a direct debit arrangement
taking steps to ensure no further direct debits are made to the account once the arrangement is cancelled
working with the collecting business’s financial institution to resolve any disputes around direct debit payments.

Processing and clearing

Direct entry is the workhorse of the Australian payments system carrying average yearly values of more than $15 trillion. One of direct entry’s features is its relative low cost because volumes are high and payments are batched.

Financial institutions exchange payments in bulk, six times a day on weekdays (10.00am, 1.00pm, 4.00pm, 6.30pm, 8.45pm and 10.30pm). Settlement occurs on the same-day after each of the first five official exchanges. For further details, please refer to cl. 4.2 of the BECS Procedures.

Same-day settlement was introduced in November 2013 to reduce counterparty and operational risk. It also gives financial institutions flexibility in developing products to suit customers’ needs.

Direct entry user numbers

Direct entry payments include a unique six-digit number which identifies companies approved by financial institutions to use the system. This number is referred to as a ‘DE User ID’ and is issued by AusPayNet via the sponsoring financial institutions.

Information

We produce guidelines and brochures and general information to help existing users of the direct entry system understand how it works.

For more specific information on the direct entry system, or to become a direct entry user, please contact your financial institution.

Developments

BECS Transition

In June 2023, the Australian Government released its Strategic Plan for Australia’s Payments System. One key priority was modernising payments infrastructure, where the Government expressed support for an industry-led transition away from the legacy BECS Framework, in favour of more modern account-to-account payments alternatives.

AusPayNet has established the BECS Transition program, to ensure any transition away from BECS is managed responsibly, with no disruption to the efficient and secure flow of essential payments.

BECS Procedures v71 (Effective 1 September)

Changes were made to clarify the DDR and Claims process in the direct entry rules 2025. These changes as reflected in the Chapter 7 of Procedures v71 will be effective from 1 September 2025.

Direct Debits & Electronic Transfers

Related Content