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Recurring Payment Agreement for Australia

Recurring Payment Agreement Template for Australia

This document is an Australian-compliant Recurring Payment Agreement that establishes the terms and conditions for regular, scheduled payments between a service provider/merchant and a customer. It complies with Australian consumer protection laws, privacy regulations, and financial services requirements, including the Competition and Consumer Act 2010 and the Payment Systems (Regulation) Act 1998. The agreement covers payment terms, authorization procedures, modification rights, termination conditions, and data protection requirements, ensuring both parties' interests are protected while maintaining regulatory compliance.

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What is a Recurring Payment Agreement?

The Recurring Payment Agreement serves as a legally binding document under Australian law that facilitates regular, automated payment arrangements between service providers and their customers. This agreement is essential for businesses offering subscription services, installment payments, or any ongoing service requiring regular billing. It ensures compliance with Australian financial regulations, consumer protection laws, and privacy requirements while providing clear terms for payment authorization, modification, and termination. The document is particularly crucial in today's digital economy where automated payments are increasingly common, and it helps businesses maintain consistent cash flow while providing customers with convenient payment options. This agreement should be used whenever a business needs to establish a regular payment schedule with customers, whether for ongoing services, membership fees, or installment payments.

What sections should be included in a Recurring Payment Agreement?

1. Parties: Identification of the payment recipient (merchant/service provider) and the payer (customer)

2. Background: Context of the agreement and the services/products for which recurring payments are being established

3. Definitions: Key terms used throughout the agreement including Payment Date, Payment Amount, Payment Method, etc.

4. Payment Terms: Detailed specification of payment amount, frequency, timing, and payment method

5. Authorization: Customer's explicit authorization for recurring payments and confirmation of authority to authorize payments

6. Duration: Term of the agreement, including start date and any end date if applicable

7. Modification of Payments: Process for changing payment amounts, frequency, or other terms

8. Termination Rights: Conditions and process for terminating the recurring payment arrangement

9. Failed Payments: Procedures for handling failed or rejected payments

10. Privacy and Data Protection: Handling of personal and payment information in compliance with Privacy Act

11. Notices: How and when notices about payments or changes will be communicated

12. Governing Law: Specification of Australian law as governing law and jurisdiction

What sections are optional to include in a Recurring Payment Agreement?

1. Cooling-off Period: Include when required by consumer law or when offering a voluntary cooling-off period

2. Special Promotions: Include when the agreement includes promotional periods or special pricing terms

3. Third-Party Payment Processor: Include when payments are processed through a third-party service provider

4. International Payments: Include when payments may be processed in foreign currencies or across borders

5. Refund Policy: Include when specific refund terms need to be outlined

6. Dispute Resolution: Include when specific dispute resolution procedures are needed beyond standard legal processes

What schedules should be included in a Recurring Payment Agreement?

1. Schedule 1 - Payment Schedule: Detailed breakdown of payment amounts, dates, and frequency

2. Schedule 2 - Direct Debit Request: Standard direct debit request form and service agreement

3. Schedule 3 - Fee Schedule: List of all applicable fees including late payment or failed payment fees

4. Appendix A - Payment Method Authorization Form: Form for capturing payment method details and authorization

5. Appendix B - Cancellation Form: Standard form for requesting cancellation of recurring payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions


































Clauses

























Relevant Industries

Retail

Software and Technology

Professional Services

Financial Services

Healthcare

Education

Telecommunications

Utilities

Fitness and Wellness

Property Management

Insurance

Subscription Services

Media and Entertainment

Relevant Teams

Legal

Finance

Accounts Receivable

Compliance

Customer Service

Operations

Risk Management

Treasury

Billing

Contract Administration

Relevant Roles

Chief Financial Officer

Finance Manager

Accounts Receivable Manager

Legal Counsel

Compliance Officer

Business Development Manager

Customer Service Manager

Operations Manager

Contract Administrator

Risk Manager

Payment Services Manager

Billing Coordinator

Treasury Manager

Financial Controller

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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