For the financially astute residents amongst us, we have some important news to bring you: As of this Saturday, South Africa might be working from a new debit order system – and we’ve bought all the main points right here.
How the new debit order system will work
The South African Reserve Bank (SARB) will introduce the Authenticated Collections AC/DebiCheck project from 1 May 2021 as a part of its modernisation of the nationwide fee system (NPS). This will then permit folks to launch funds from the accounts digitally when a debit order is despatched over by both a person or an precise company.
“The project seeks to address increasing levels of abuse in debit order payment systems. Early debit orders will only be processed through the AC/DebiCheck system, while normal debit orders will still be processed later in the day – as per usual. Before then, consumers would provide a mandate to a company / user to collect money from their bank account.”
“In the new AC/DebiCheck payment system, consumers will provide authorisation to their bank, by way of authenticated mandate, to release the funds from their account when a debit order is submitted by a company or user from whom they bought goods or contracted for a service.” | Statement from the South African Reserve Bank
‘Get ready for 1 May!’ SARB opens up on SA’s new fee system
All new and renegotiated Early Debit Order (EDO) mandates will now be originated in the AC/DebiCheck fee system from subsequent month and never in the present EDO system. Companies or customers of the system had till 1 November 2019 to completely implement the AC/DebiCheck fee terminals
SARB has additionally revealed that this project is an initiative of the collections trade, which ensures the security and effectivity of the NPS, and the mitigation of rogue and fraudulent behaviour in the collections system.