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Regular Payments FAQs

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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 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. For example: You may have an insurance policy where you pay the annual premium in 12 regular monthly instalments. Or, you may have agreed for your utility company, e.g. power, gas and water to you for the outstanding amount. 

An Instalment Payment represents an agreement between you and a merchant in which you pre-authorise the merchant to bill your account or Visa Card 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 you 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 types of Regular Payment Arrangements are there?

Regular payment can be made through Direct Debits by giving out your BSB and account number or Regular Visa Card Payments by giving out your Visa card number and expiry date.

Direct Debit

Direct Debits are linked directly to your nominated LCU account - using BSB 802 841 and your 9 digit account number or your membership number for your nominated account.

At LCU we recommend that you give out your 9 digit account number rather than just your 4 or 5 digit membership number for direct debits as this allows you to control exactly which account a direct debit will come out of.

We recommend Direct Debits rather than Regular Visa Card payments as this will save you from having to update details with payees if you have to replace your Visa Card. Also, Direct Debits linked to your account allows us to immediately stop them upon your request.

How to set up a Direct Debit?

To set up a Direct Debit you provide the merchant with your LCU account details which includes our BSB 802 841 and your 9 digit account number. This gives the company permission to collect payments from your account on a regular agreed due date without you having to manually arrange a payment.

Important Note: It is important to provide your own name as the account name and not LCU.

How to cancel a Direct Debit?

If you wish to cancel a Direct Debit linked to your account you can simply give us a call on 02 9859 0585 or just email us at info@lcu.com.au.

Alternatively, you can fill out a Direct Debit Cancellation request form and send it back to us by fax or mail.

We will action these cancellations promptly, normally on the same day as we receive your request.

We recommend that you let the merchant know as well to avoid incurring any unnecessary fees from them.

Regular Visa Card Payments

A regular payments an agreement between you (the cardholder) and a merchant where you preauthorise the merchant to bill your card at predetermined intervals (e.g. monthly, quarterly).

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 cancel of goods and/or services (e.g. cancellation of your car insurance policy).

How to cancel a Regular Visa Card Payment?

To cancel or your Regular Visa Card Payment 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.

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

What are my rights to Dispute?

Any issue with your regular payments, including the failure of the merchant to comply with your request to cancel a Regular Visa Payment, should be taken up directly with the merchant.

What are my responsibilities and obligations?

If you have entered into a Regular Payment arrangement with a merchant, you should keep a record of all direct debit arrangements and store the details in safe place. A template for recording your regular payment arrangements is available under additional Information at the bottom of this page. A brochure explaining the ’Ins and Outs of Direct Debits’ is available from the Australian Payments Clearing Association website, www.apca.com.au.

You are responsible for notifying the merchant when your details change, including a change in card number and/or change of card expiry date. Until you notify the merchant, your bank is required to process transactions from the merchant. If the details are not changed with the merchant the transaction may be declined.

LCU's Suggestion

We suggest that you link any Regular payments directly to your LCU account through and not through your Visa Card. This avoids having to update your Regular payment details each time a new card is issued. LCU can stop direct debits that are set up to the BSB and account number immediately but Regular Payments through Visa Cards need to be stopped with the merchant.

  Additional information

Questions?

If you have any questions, please contact us.