Finance request template

Direct debit authority signing request template

An authority in which an account holder permits a business to debit their nominated bank account or card for agreed payments under a direct debit arrangement.

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What is a direct debit authority?

A direct debit authority is the account holder's signed permission for a business to draw payments from their nominated bank account or card. It typically records the account details, the amounts or how they are calculated, the timing of debits and the terms of the arrangement. A signed authority is important because debits should only be made with the account holder's clear consent.

Direct debit arrangements in Australia operate under industry rules, and providers are generally expected to give the customer a service agreement explaining their rights, including how to cancel or dispute a debit. Capturing the authority as a signed record supports compliance and reduces disputes. This is general information about the arrangement, not financial or legal advice on your specific obligations.

When to use a direct debit authority

Setting up recurring payments for a subscription or membership
Collecting instalments under an agreed payment plan
Automating regular invoice or service payments
Onboarding a new customer onto recurring billing

What to include in a direct debit authority

Account holder and account details: name and the nominated account or card to be debited
Debit amounts: the amount, or how variable amounts are calculated, and the frequency
Debit dates: when debits will occur and how the account holder is notified of changes
Cancellation and disputes: how the account holder can change, stop or query a debit
Authorisation: confirmation the account holder authorises the debits on the stated terms

Pros and cons of sending a direct debit authority as a signing request

Pros

Captures clear, signed consent before any debit is made
Private link keeps bank and card details out of shared inboxes
Tracks opens and signature so you know the authority is in place
Completion receipt gives you a dated record of the consent

Cons and things to watch

Bank account details are sensitive and must be handled securely
An authority does not by itself process payments through your bank
You must still meet direct debit service-agreement obligations
Does not replace advice on payments compliance or the direct debit rules

How to send a direct debit authority with Cosign

Upload your direct debit authority and preview to confirm account fields, amounts and debit dates are clear
Add the account holder as the signer and set a subject that identifies the arrangement
Set a 14-day expiry and add a password, as the form captures sensitive bank details
Send the private link, track the signature, and keep the completion receipt with your records

Direct debit authority request details

Email subject

Direct debit authority request

Default message

Please review and sign this direct debit authority so payments can be processed.

Signer setup

Account holder

Suggested expiry

14 days

Button label

Authorise direct debit

Best fit

Finance teams

Direct debit authority FAQs

Is an electronically signed direct debit authority valid in Australia?

Electronic signatures are generally recognised in Australia when the account holder consents and is identifiable, and electronic direct debit authorities are widely used. You should still meet the direct debit rules that apply to you. This is general information, not legal or financial advice.

Does Cosign actually process the direct debit payments?

No. Cosign captures and tracks the signed authority only. Processing debits requires a bank or payment provider and your own direct debit facility.

Are the account holder's bank details kept private?

Yes. The authority is sent via a private link and is not published or indexed by search engines. Add a password for an extra layer of protection on sensitive bank details.

How can an account holder cancel a direct debit authority?

Cancellation terms should be set out in your direct debit service agreement, and the account holder can usually also contact their bank. The signed authority records the original consent, not any later cancellation.

Do I need a service agreement as well as the authority?

Under Australian direct debit arrangements, providers are generally expected to give customers a service agreement explaining their rights. Check the rules that apply to you, as a signing tool does not replace compliance advice.