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PayTo for consumers

About PayTo

What is PayTo?
PayTo is a secure payment option that lets you pay directly from your bank account using your PayID, or BSB and account number. It gives you more visibility and control over your payments in your online banking.
Is PayTo safe?
PayTo agreements are authorised and managed in the security of the online banking of participating financial institutions. This means the same level of security that protects your existing bank account payments will also protect PayTo payments.
Who owns PayTo?
PayTo is a service offered by banks, financial institutions, and payment service providers in Australia. It’s an initiative of Australian Payments Plus (AP+), Australia’s domestic payments organisation that also includes BPAY, eftpos, NPP Australia, ConnectID, and Beem.
Who offers PayTo?
PayID is available in the online banking of participating financial institutions. Check to see if your financial institution offers PayID here.  
Where can I use PayTo?
PayTo is new so keep an eye out for PayTo in your online banking and on your bill, invoice, payment wallet, or at checkout.

Creating a PayTo agreement

What is a PayTo agreement?
A PayTo agreement is an agreement between you and a business or organisation, where you authorise payment terms such as amount, purpose and frequency for payments to that business. An agreement can be set up for one-off, ad hoc or recurring payments.
How does PayTo work?
A business or organisation will set up a PayTo agreement with you. This could be for a one-off, ad-hoc or recurring payment. You can choose to use your PayID (mobile number or email address) or BSB and account number. Some businesses may only accept certain PayID types, like a mobile PayID.

Next, the agreement will be sent to your online banking for you to review and authorise. The agreement will include all relevant payment terms such as amount, purpose, and frequency. You should check that the information in the agreement matches what you have agreed with, then authorise the agreement.

Once a PayTo agreement has been authorised, the business or organisation can only debit your account in accordance with the agreed payment terms. That means you're in control of how much money can be debited.
What if the details of the PayTo agreement are wrong?
If you do not wish to proceed with the PayTo agreement, you can decline it and contact the business or organisation. They can then create a new agreement for you to authorise.

Managing PayTo agreements

Where can I find my PayTo agreements?
You can find your agreements in your online banking. From here, you can authorise, view and manage them in one place.
Can I change, pause, resume or cancel my PayTo agreement?
You may pause, resume, or cancel your agreement in your online banking. You can also resume agreements you have previously paused. Please note that pausing or cancelling an agreement doesn’t change your contractual arrangements with a business or organisation.

For changes to the payment amount or frequency, the business or organisation will need to make the change. They will send you an updated PayTo agreement for you to authorise.
Who do I contact for help?
If you have a question about a PayTo agreement, please contact the business or organisation you have the agreement with.

If you have a question about managing your PayTo agreements in your online banking, please contact your bank or financial institution.
What if money is taken without my authorisation?
If you believe money has been taken out of your account without your authorisation, you should contact the business or organisation, or your financial institution.
What should I do if I used PayTo for goods and/or services I’m not satisfied with?
If you believe money has been taken out of your account without your authorisation, you should contact the business or organisation, or your financial institution.
What if money is taken without my authorisation?
If you’ve used PayTo to purchase goods or pay for services you’re unhappy with, you should contact the merchant or business. If your concern is not resolved, you should explore avenues of consumer protections that are offered under Australian law. The Australian Competitor & Consumer Commission (ACCC) outlines consumers rights and guarantees and provides useful information and tools.

Moving direct debits to PayTo agreements

What should I do if my direct debit is moving to PayTo?
Some businesses will move direct debit arrangements to PayTo agreements. PayTo allows you to see and manage agreements in the security of your online banking.

If you have a direct debit arrangement that is moving to PayTo, you don’t need to do anything. This is the process you can expect:

  1. You will first receive 14 days’ advance notice from the business or merchant of its intended move to PayTo.
  2. Once the ‘direct debit request’ has been moved to a ‘PayTo agreement’, you will then be able to see and manage it in your online banking.
  3. This PayTo agreement doesn’t need to be re-approved as you have already authorised the existing direct debit request with the business or merchant.
Finally, once the PayTo agreement is in your online banking, the business will allow 5 days before debiting your account.
Do I have to agree to move my direct debit to PayTo?
No. The business or merchant will give you 14 days’ advance notice. During this notice period, you may choose to ‘opt out’ and remain on the current direct debit system
How do I stop my direct debit moving to PayTo?
To opt-out of your direct debit request moving to PayTo, you need to contact your merchant or business to see what other payment options are available to you.

PayTo for Businesses

PayTo is a payment solution offered by financial institutions and payment service providers in Australia. Your financial institution or payment service provider will be able to help you with most of your PayTo queries, however we’ve included the answers to some frequently asked questions here.

About PayTo

Why should I offer PayTo as a payment method for my customers?
PayTo facilitates real-time, reliable payments to help businesses run smoother. It enables:

A new payment option for customers
Give customers more choice to choose how they want to pay you. PayTo lets customers pay directly from their bank account, using their PayID, or BSB and account number.

  • Real-time sign up, verification and notifications
    • Verify your customer’s account, and take the first payment in real-time, and get notified if a payment succeeds or fails, or when customers pause or cancel their agreement, so you can take immediate steps to retain their business.

  • Fast payments
    • Payments are processed fast, which means no pending transactions, giving you and your customers confidence that payments won’t be delayed.

  • Some payments may be held for additional security checks. Speak to your financial institution or payment service provider for more information.

  • Easy reconciliation

    • More information can be embedded in agreements, helping with easy matching and reconciliation in your accounting, banking or customer management systems. Agreements are also stored digital and readily accessible. 
Is PayTo safe for my business?
Yes, PayTo is a safe way to initiate payments from your customers as an agreement must first be authorised by them within their online banking. You’ll have confidence that the account is valid and the customer has authorised the PayTo agreement themselves before initiating payments from their account.

Getting started with PayTo

How do I access PayTo?
To use PayTo to initiate real-time payments, you’ll need to be sponsored as a PayTo User by a PayTo Sponsor. You should speak with your financial institution, or payment service provider to find out more about when their PayTo capabilities will become available. Once available, they’ll be able to provide your business access to PayTo through proprietary channels or services such as APIs.

PayTo can currently be offered by the following financial institutions and payment service providers.

Read the PayTo Service Overview for more information.
What is a PayTo User and a PayTo Sponsor?
A PayTo User is sponsored by a PayTo Sponsor, either an NPP Participant or an Identified Institution. Once sponsored, a PayTo User can offer PayTo as a payment method through their PayTo Sponsor’s proprietary channels or service such as APIs.
How much does PayTo cost?
Please contact your sponsoring organisation to discuss commercial terms for access to PayTo.

Using PayTo

How can my business use PayTo?
The most common way to use PayTo is as an alternative to direct debit, including moving your existing customers’ direct debits to PayTo. PayTo can also be used for in-app and eCommerce transactions for one-off, ad hoc or account-on-file payments.

Businesses can also use PayTo for business processes like outsourced payroll, account payable and the payment of eInvoices.

Read more about use cases here.
What is a PayTo User and a PayTo Sponsor?
A PayTo User is sponsored by a PayTo Sponsor, either an NPP Participant or an Identified Institution. Once sponsored, a PayTo User can offer PayTo as a payment method through their PayTo Sponsor’s proprietary channels or service such as APIs.
How much does PayTo cost?
Please contact your sponsoring organisation to discuss commercial terms for access to PayTo.
How does PayTo work?
You will need to set up a PayTo agreement with your customer. This could be for a one-off, ad-hoc or recurring payment. The agreement will include all relevant payment terms such as amount, purpose, and frequency. This will be sent to your customer’s online banking or them to review and authorise.

Once a PayTo agreement has been authorised, you can debit their account in real-time, in accordance with the agreed payment terms.
How will I know if the customer has approved, declined, paused, or requested to change or cancel their PayTo agreement?
Once a PayTo agreement has been sent to a customer, you’ll receive notification of any changes to the status of their agreement. The form of this notification will be determined by your sponsoring organisation.
What should I do if a customer declines, pauses, cancels or requests to change a PayTo agreement?
If a customer declines, pauses, cancels or requests to change a PayTo agreement, you’ll receive a notification. You should be aware that if any of these occur you won’t be able to debit their account, but it doesn’t change their contractual arrangements or payment obligations with you.

The notification will provide the clarity you need to engage with your customers, including discussing any concerns. You can then reissue the PayTo agreement for their authorisation, or offer an alternative payment option, to maximise payment success.
Can a customer link their card to a PayTo agreement?
No. With PayTo, customers use their PayID, or BSB and account number to create a PayTo agreement.
What happens if I must change the payment details (e.g. increase the payment amount) of an existing PayTo agreement?
You can make changes to an existing PayTo agreement as often as you need. Please refer to your sponsor for more information on how to do this. Where you make changes to the payment terms (e.g. increasing an amount), it’s worthwhile notifying the customer of this first. Your customer will be required to authorise the change to the PayTo agreement before you’ll be able to initiate payments for the new amount.
What if the customer doesn’t have enough money in their account?
If the customer doesn’t have enough money in their account, you won’t be able to debit their account. However, you may be able to reattempt at least once, depending on your sponsoring organisation. If your customer is unable to meet the terms of your PayTo agreement, you should discuss any issues or concerns with them.
What if a customer has money taken without their authorisation?
If money is ever taken out of your customer’s account without their authorisation, they should contact their financial institution immediately. If your business made the debit in error, you should discuss this with the customer and resolve the issue.
Am I liable for charges that a customer may dispute?
Payments may only be initiated in line with an authorised PayTo agreement. Please refer to your PayTo sponsoring organisation for more information on its dispute process.

Moving direct debits to PayTo agreements

How do I move direct debits over to PayTo?
To move direct debit arrangements over to PayTo, you will need to work with your sponsoring organisation. In accordance with the rules under which you have established the direct debit arrangement with your customer, you need to provide at least 14 days’ notice before a PayTo agreement is set up to replace a direct debit request. Once the PayTo agreement is set up, payments can be initiated 5 days later.
Can customers decline moving to PayTo?
Yes, a customer may opt out of moving to PayTo. If a customer opts out of moving to PayTo within the 14-day notice period, your existing arrangement stays in place.
What happens after the direct debit is set up in PayTo?
Once the direct debit has been moved to PayTo, your customer’s bank can check the arrangement details, and to liaise with the customer to confirm they are aware of the direct debit arrangement that has been moved to PayTo. After 5 calendar days, you may begin initiating payments against the PayTo agreement.
Is there an ideal time to move a customer’s direct debits to PayTo?
Ideally, you should attempt to move any direct debit arrangements to PayTo at least 5 days in advance of your next agreed initiation date. This is because once a PayTo agreement has been presented in the customer’s online banking, a payment cannot be initiated for 5 days.
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View our Reconciliation Action Plan

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