Debit orders are a convenient way of handling your monthly payments automatically without you having to remember to process monthly payments yourself. The current debit order system however has presented some challenges in the way debit orders are processed, these include fraudulent debit order collections without a customer’s consent but it also includes customers who default on debit order payments even though they are legally mandated to do so.
To streamline the process and to make the debit order process more efficient, the Payments Association of South Africa (PASA) and the South African Reserve Bank have implemented a solution known as the DebiCheck system.
The DebiCheck debit order system will soon be rolled out on a national level with Early Debit orders and Non-authenticated debit orders slowly being phased out and will no longer be effective as of the 1st November of this year.
How does the DebiCheck system work?
The DebiCheck system will allow you greater control over your debit orders and will require your cell number authentication in order to validate the debit order. The debit order is mandate-specific and will be verified by your bank before a debit order is processed.
For example, if you choose to join a service provider, such as a gym, the gym’s financial services provider will contact your bank with a mandate of your debit order details, and your bank will then proceed to notify you on the cell number they have on record at the Bank before the debit order is processed on the Debicheck system. The procedure is confirmed once-off when a debit order agreement is entered into and is an agreement that is separate from your existing debit orders.
The new DebiCheck system will soon replace the traditional debit order system and will be to your advantage as a consumer allowing you greater control over monthly deductions from your bank account as you will be informed ahead of the process. It is also mandate-specific and will only change should there be any changes with your service provider that will require your electronic consent. If you would like to know more about this or if you would like to find out more about how you can apply for home improvement finance contact Real People today.