What is changing?

From 28 November 2016, there will be changes to the way Electronic Credits are processed across the New Zealand banking industry. Electronic credits include: automatic payments, bill payments and direct credits. This is a Payment New Zealand requirement.

Payments submitted via: Corporate Online, DeskBank and direct internet connection

Submitting payments

Current

From November 28th 2016

Key things to consider

  • Direct credit payments are processed at end of day
  • Direct credits have a two day clearance period
  • Direct credit payments will be validated and processed at the time of submission
  • Payees will receive payments more frequently throughout the day
  • The total value of the payment will be treated as cleared and available for immediate use
  • You will need to ensure that there are sufficient funds available (or an overdraft limit in place) at the time of payment submission
  • The full value of inward electronic credits will be available more frequently throughout the day
  • Your account liquidity will fluctuate throughout the day
  • You may want to consider when your payroll payments are made. We recommend attempting to keep these payment times as consistent as possible for the benefit of your staff.

Insufficient funds

Current

From November 28th 2016

Key things to consider

  • Westpac New Zealand Limited allows some payments to be processed when there are insufficient funds available
  • It is the customer's responsibility to ensure the account is brought within any agreed limits by close of business day
  • Electronic credits can be dishonoured
  • Sufficient funds must be available at the time of payment submission
  • If there are insufficient funds (or available facilities) the payment may be delayed or declined
  • Westpac New Zealand Limited reserves the right to individually assess these payments and to allow some to be processed
  • Electronic credits cannot be dishonoured for insufficient funds
  • If a payment fails due to insufficient funds (or available facilities) the payment will need to be re-imported, re-authorised and submitted
  • Like the Direct Credit Recovery process, the Electronic Credit Recovery process is subject to fees and does not guarantee the recovery of funds

Payment Dishonours

Current

From November 28th

Key things to consider

  • Subject to specific conditions, some electronic credits can be reversed in some circumstances (such as duplication)
  • Direct Credit Recovery process is in place for reversal requests
  • No Change
  • The Direct Credit Recovery will be replaced by an Electronic Credit Recovery process
  • Like the Direct Credit Recovery process, the Electronic Credit Recovery process is subject to fees and does not guarantee the recovery of funds
  • The customer can attempt to recover the funds themselves where the payee is known to them

Deleting payments

Current

From November 28th 2016

Key things to consider

  • Direct credits can be deleted (stopped from processing) if a request is made prior to the payment being processed
  • Electronic credits will be processed at the time of submission and cannot be deleted
  • Future dated payments can still be deleted if the request is made prior to processing cut-off times
  • Ensure payment details come from a trusted and reliable source (for example, a branded bank statement or deposit slip)
  • Ensure there are sufficient checks and processes in place for paying new payees or changing pay details of existing payees

Payment processing times

Current

From November 28th 2016

Key things to consider

  • Future dated files are processed on the morning of the due date
  • Automatic payments are processed at 7:30am on the morning of the payment due date. If there are not sufficient funds to cover the payment, it will be retried later in the day and/or again the following morning
  • Direct debits are processed at the end of day
  • DeskBank cut off time for electronic credits is 8pm
  • COL cut off time for electronic credit files is 9pm
  • No change
  • No change
  • Direct debits being paid into your account will be visible throughout the day. Direct debits being paid out of your account will continue to be processed at the end of day
  • No change
  • No change
  • It is important to ensure that payment details are correct at the time submission

Payments submitted via: Business Online, Westpac One, Internet Online Banking

Submitting payments

Current

From November 28th 2016

Key things to consider

  • Electronic credit payments are processed at the time of submission
  • Electronic credits are subject to individual clearance periods
  • No change
  • The total value of an electronic credit will be treated as cleared and available for immediate use
  • The full value of inward electronic credits will be available more frequently throughout the day

Insufficient funds

Current

From November 28th 2016

  • Sufficient funds must be available at the time of payment submission
  • No change

Dishonouring payments

Current

From November 28th 2016

Key things to consider

  • Electronic credits can be dishonoured
  • Direct Credit Recovery process is in place for reversal requests
  • Electronic credits cannot be dishonoured for insufficient funds
  • The Direct Credit Recovery will be replaced by an Electronic Credit Recovery process
  • The customer can attempt to recover the funds themselves where the payee is known to them
  • Like the Direct Credit Recovery process, the Electronic Credit Recovery process is subject to fees and does not guarantee the recovery of funds

Payment processing times

Current

From November 28th 2016

  • Inward and outward payments are made throughout the day (intraday processing)
  • No change

Have more questions or concerns?

If you want to talk with us about these changes, please contact us, or for a summary of the changes, you can download a PDF.

Contact us Download PDF