Finance

SARB announces new debit order system

By BR Reporter 26m in the past

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In an effort to modernise the cost system, the South African Reserve Bank (SARB) has introduced that it’ll implement AC/DebiCheck cost system from May 1.

SARB mentioned the purpose of the project was to handle the growing ranges of abuse within the debit order cost system recognized commercially because the early debit order (EDO) cost system.

SARB mentioned: “From May 1, 2021, all new and renegotiated EDO mandates will be originated in the AC/DebiCheck payment system and not in the current EDO payment system.

“Early debit orders will only be processed through the AC/DebiCheck payment system, while normal debit orders will still be processed later in the day as per current arrangements.”

The central financial institution mentioned the EDO system allowed shoppers to instruct a company or person to gather money from their checking account.

SARB mentioned the new AC/DebiCheck cost system shoppers would offer authorisation to their financial institution to launch funds from their accounts when a debit order was submitted by a company or person with whom they performed business.

The AC/DebiCheck cost system was first applied on August 1, 2018, and has been going by way of varied levels and processes of testing and integration.

“Companies or users of the EDO system had until November 1, 2019, to fully implement the AC/DebiCheck payment system. Since the implementation date, companies or users have been requested to begin using the system for all EDO collections,” it mentioned.

“Owing to the complex nature of the AC/DebiCheck system, a lengthy ramp-up period was required to ensure that all stakeholders in the EDO collections ecosystem had implemented and tested their internal processes and interfaces to the AC/DebiCheck payment system,” the SARB mentioned.

SARB added that the AC/DebiCheck project was an initiative of the collections trade that ensured the security and effectivity of the nationwide cost system, and the mitigation of rogue and fraudulent behaviour within the collections system.

BUSINESS REPORT ONLINE



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