Australian dance studios can use Stripe BECS Direct Debit in Dance Studio Manager to collect tuition from a family's Australian bank account. The family enters its BSB and account details through Stripe's secure form and accepts a Direct Debit Request. Once saved, that payment method can be used in DSM for a current payment or connected to scheduled tuition.
BECS can be a useful alternative to cards for regular tuition because Stripe's standard Australian price is lower than its current standard domestic-card price. It also avoids the card-expiry problem. The trade-off is that bank debits are not confirmed instantly, can fail, and have a different dispute process. A studio should understand those differences before making direct debit its default.
On this page What BECS Direct Debit is How it works in DSM BECS versus cards Stripe and DSM fees Australia's card-surcharge change Setup checklist Frequently asked questionsWhat is BECS Direct Debit?
BECS is Australia's Bulk Electronic Clearing System. With BECS Direct Debit, a customer authorises a business to debit an Australian bank account. For a dance studio, that can mean collecting monthly tuition, an instalment, or another agreed payment without asking the family to re-enter bank details each time.
The authorisation is called a Direct Debit Request (DDR). Stripe explains that the mandate includes the account holder's name, BSB and account number, together with acceptance of the Direct Debit Service Agreement. Stripe creates and stores the electronic mandate used by its payment flow. Customers can later cancel a mandate through their bank or the business; a cancelled mandate cannot be used for future debits. See Stripe's Australia BECS Direct Debit documentation.
Why Australian studios consider direct debit for tuition
Designed for repeat collection
A reusable mandate can support regular tuition without collecting bank details again for every cycle.
No card expiry date
A bank account does not expire every few years like a card, although accounts can close and mandates can be cancelled.
Lower standard Stripe cost
At the time of review, Stripe lists BECS at 1% plus A$0.30 with an A$3.50 cap, including GST.
One family payment record
DSM keeps the saved direct-debit method with the family's account and scheduled-payment workflow.
Direct debit is not automatically better for every transaction. Cards remain useful when a family needs to pay immediately, when the studio cannot wait for delayed confirmation, or when a parent prefers a card. Many studios will want both choices rather than an all-or-nothing rule.
How Stripe BECS works inside Dance Studio Manager
We reviewed DSM's current Stripe implementation before preparing this guide. When a studio is configured for Australian payments and direct debit is enabled, DSM presents an Australian bank-account form rather than a US routing-number form. Stripe securely collects the BSB, account number, account holder information and email, then confirms the BECS mandate. DSM stores the resulting Stripe payment-method reference—not the raw bank account number—for later use.
- The studio enables Australian direct debit.
The studio uses an Australian Stripe account, processes in AUD, completes Stripe's required verification and has the DSM direct-debit options enabled.
- The family adds a bank account.
Through the DSM family payment area or checkout, the account holder enters a name, email, BSB and account number into Stripe's secure element and accepts the DDR.
- DSM saves the Stripe payment method.
The saved method appears as a direct-debit account with only identifying information such as the last four digits available to staff.
- The studio uses it for tuition.
The direct-debit method can be selected for a current payment or attached to a scheduled payment or tuition plan in DSM.
- Staff monitor processing and failures.
Because BECS is delayed, the studio should not treat “processing” as final success. Failed items need follow-up and may require a new mandate or another payment method.
This is part of DSM's broader recurring payments and tuition workflow, where staff can manage scheduled payments, saved methods, statements, balances and follow-up from the same system as classes and families.
BECS Direct Debit versus card payments
| Question | Stripe BECS Direct Debit | Online domestic card |
|---|---|---|
| What the family provides | Account holder details, BSB, account number and DDR authorisation | Card details and any authentication requested by the card issuer |
| Reusable for scheduled tuition | Yes, while the mandate remains active | Yes, while the saved card remains valid |
| Standard Stripe price reviewed 27 August 2026 | 1% + A$0.30, capped at A$3.50, including GST | Currently 1.7% + A$0.30 for domestic cards, including GST; Stripe has announced lower pricing from 1 October 2026 |
| Confirmation | Delayed; monitor processing until success or failure | Usually immediate authorisation result |
| Common maintenance issue | Closed account, insufficient funds or cancelled/inactive mandate | Expired, replaced or declined card |
| Disputes | Stripe says accepted BECS disputes are final and cannot be appealed through Stripe | Card disputes normally have an evidence-response process |
Prices above are Stripe's published Australian standard pricing, not a quote for every account. Custom Stripe agreements can differ, and Stripe can revise its fees. Review the current pricing page and your own Stripe agreement before setting tuition or payment policies.
What Stripe and DSM charge
DSM software
US$40/month
Core DSM includes unlimited students, classes and locations.
Stripe BECS standard price
1% + A$0.30
Stripe caps the standard fee at A$3.50 per successful debit. Stripe states that this price includes GST.
Failed or disputed debit
A$2.50
Stripe currently lists A$2.50 for a failed BECS payment and A$2.50 for a disputed BECS payment.
Stripe's local-payment-method pricing provides the current BECS transaction, failure and dispute fees. The original processing fee is not returned when a payment is refunded. Payments processed through DSM also include a 0.2% DSM platform fee; Stripe's fees are separate. DSM's software price is explained on the DSM pricing page.
Settlement, failures, refunds and disputes
- Settlement: Stripe's standard table shows a debit submitted at T+0 and success with funds available in the Stripe balance at T+2 business days, subject to cut-off times and non-business days.
- Failure: A debit can fail for insufficient funds, invalid details, a closed account or an inactive mandate. A permanent failure can revoke the mandate, requiring the family to establish a new one.
- Refund: Stripe says BECS refunds must be issued within 90 days and typically take three to five business days after processing. Wait for the original payment to settle and tell the family what to expect.
- Dispute: Stripe says a bank account holder can dispute a BECS debit through the bank for up to seven years, and an accepted dispute is final in Stripe. Good mandates, accurate amounts and clear debit notices matter.
Avoid a double refund
If a studio issues a refund while the family also disputes the debit through its bank, both credits may be processed. Stripe recommends confirming the refund with the customer, explaining the timing and issuing it after the original payment has settled.
Australia's card-surcharge rules are changing on 1 October 2026
Until 30 September 2026, businesses must continue following the current Australian card-surcharge rules. For the covered card types, a surcharge cannot exceed the business's cost of accepting that payment type. The ACCC's current card-surcharge guidance explains the existing limits and the upcoming change.
From 1 October 2026, Visa, Mastercard, American Express and eftpos are introducing “no surcharge” rules for prepaid, debit and credit card payments. The ACCC says businesses will not be able to continue charging customers a surcharge for those card types. The Reserve Bank's implementation FAQ confirms the effective date and advises businesses to check with their payment service provider.
The announced change applies to card payment surcharges. It does not by itself answer every question about a fee attached to a bank debit or about how tuition prices must be displayed. Australian Consumer Law still requires clear, non-misleading prices and prominent minimum totals when an unavoidable fee applies. See the ACCC's price-display guidance and obtain professional advice for a studio's particular policy.
A practical setup checklist for DSM studios
- Confirm eligibility. Use an Australian Stripe account and AUD. Stripe says BECS requires additional identity verification and must be requested or enabled in Payment Methods settings.
- Ask DSM to enable the studio settings. We can confirm Stripe, Australian currency/date settings, client direct-debit access and the appropriate payment method in DSM.
- Test before inviting families. Add a test direct-debit method, confirm the mandate flow, schedule a controlled payment and make sure staff recognise processing, success and failure states.
- Write the debit calendar. Tell families the amount and expected debit date. Stripe sends debit-notification emails by default; review those settings and any studio communications.
- Keep a fallback method. Decide how staff will collect a failed debit, whether another saved method may be used and when a new mandate is required.
- Reconcile after settlement. Match successful Stripe payments to the family ledger and bank payout rather than relying only on the initial submission.
Planning Australian tuition for the next season?
See BECS Direct Debit in a DSM demo
Tell us that your studio is in Australia and that you want to use Stripe BECS. We can show you the family mandate flow, saved direct-debit accounts and scheduled tuition before you activate it for real families.
Frequently asked questions
Does Dance Studio Manager support Stripe BECS Direct Debit?
Yes. For an eligible Australian studio configured for Stripe and AUD, DSM can securely collect a BECS mandate, save the resulting Stripe direct-debit payment method and use it for current or scheduled payments.
Can BECS Direct Debit be used for recurring dance tuition?
Yes. The saved BECS payment method can be connected to scheduled tuition in DSM while the family's mandate remains active. Staff should monitor delayed success or failure rather than assuming submission means final payment.
How much does Stripe BECS Direct Debit cost?
As reviewed on 27 August 2026, Stripe's Australian standard price is 1% plus A$0.30 per successful BECS debit, capped at A$3.50 and including GST. Stripe also lists A$2.50 for a failed payment and A$2.50 for a disputed payment. Custom pricing can differ.
How long does a BECS payment take?
Stripe's standard settlement table shows success and funds available at T+2 business days after submission, subject to cut-off times and non-business days. Stripe also notes that notification of success or failure can take up to three business days.
Can an Australian studio still add a card surcharge after 1 October 2026?
The ACCC says Visa, Mastercard, American Express and eftpos will introduce no-surcharge rules from 1 October 2026 for their prepaid, debit and credit cards. Studios should confirm implementation with their payment provider and obtain advice for their own pricing and contracts.
Are there any DSM platform fees on payments?
DSM applies a 0.2% platform fee to payments processed through DSM. Stripe processing, failure and dispute fees are separate and are paid under the studio's Stripe agreement.
Sources and review notes
- Stripe: Australia BECS Direct Debit payments
- Stripe Australia: standard pricing
- Stripe Australia: local payment method fees
- ACCC: card surcharges and the 1 October 2026 changes
- Reserve Bank of Australia: payment-surcharge removal FAQ
- ACCC: price display requirements
Last reviewed 27 August 2026. Stripe fees, verification requirements, settlement timing and payment-method rules can change. The surcharge section is general information, not legal, accounting or financial advice. Check current Stripe terms, card-network rules, Australian Consumer Law guidance and the studio's professional advice before changing pricing or payment policies.