đź“Ś Introduction
A Direct Debit Indemnity Claim (DDIC) occurs when a customer requests a refund of a Direct Debit payment through their bank. This means the payment initially shown as “paid” in FLOW may later be reversed.
At present, FLOW does not process DDICs automatically. This guide explains the steps you should take when a DDIC is received.
đź› Steps to Follow
1. Check the Indemnity Claim
Confirm which payment(s) have been reversed.
Review the reason provided by the bank for the claim (e.g., customer cancelled, payment taken in error, etc.).
2. Update Customer Account in FLOW
Since FLOW does not currently adjust for DDICs:
Add a note to the customer’s account recording the indemnity claim.
Clearly mark which payment was affected (e.g., “August 14th Direct Debit – Indemnity Claim received”).
3. Chasing Arrears
If the customer still owes the funds, arrange to collect payment outside of FLOW (e.g., manual card payment, bank transfer).
Decide on membership status:
Cancel the membership if arrears are not paid or if that’s agreed.
Leave active if payment is recovered or another arrangement is agreed with the customer.
4. Bank Dispute Option (within 2 weeks)
Some indemnity claims can be contested with the bank within a two-week window.
Example: If the customer claims they cancelled their membership last year but you have proof they reinstated it, you can submit evidence to the bank.
If successful, the bank will reject the claim, return the funds to you, and reclaim them from the customer.
🔑 Key Notes
FLOW currently does not reverse or flag payments automatically after a DDIC.
Always keep clear account notes so future queries can be traced easily.
Next steps depend on the reason for the claim and whether you want to recover the payment or accept the refund.
âś… Summary
DDICs are not processed in FLOW today.
Record the claim manually in FLOW.
Recover payment separately if needed.
Consider disputing with the bank if within the two-week window.