What is the settlement risk?
When a payer confirms an Internet Banking payment they are making a final instruction to their bank to transfer funds to the payee. Payments can only be dishonoured in very limited circumstances:
- The financial failure of a bank; or
- where the payer is subsequently found to be insolvent
The Merchant should have every expectation they will receive payment subject to bank terms and conditions. Except in the above limited circumstances, dishonours or chargebacks cannot be applied to payments processed via POLi without the Merchant’s express approval (such approval can be withheld).