Changes to payment processing
Earlier this year, New Zealand banks announced that they’d now be processing domestic online payments 7-days a week, 365-days a year. In addition to 7-day processing, the rules around processing of Direct Debits have also changed.
So, what does this mean for you?
7-Day processing.
Your online payments, such as Automatic Payments and Direct Debits are now processed on the day they’re due, including non-business days such as weekends and public holidays.
Direct Debit rules.
In the past, some banks may have allowed an account to go into overdraft to process a Direct Debit however for many banks, this is no longer the case. If you don’t have sufficient funds in your account on the day your insurance premium is due, the payment won’t go through, and your cover may be affected.
What do you need to do to ensure your cover is not affected?
There are a few things you can do to ensure your cover remains in place.
- Be aware of what day your insurance premiums are due. You can check your most recent bank statement to see which date the payment has been processed.
- Ensure funds are available on that day so the payment can be processed on time. You may like to review your incoming payments to align with your outgoing bills.
What will happen if you don’t have sufficient funds in your account at the time?
If a payment is missed, your policy will go into arrears, and you’ll be sent a letter confirming the overdue amount and next steps.
If you need help, please reach out to:
- Our Customer care team if you need to change date/frequency of payments.
- Our Customer value team if you want to discuss payment plans.
- Your financial adviser if you want to discuss your cover.