What is
DebiCheck is the name for a specific type of debit order that will replace NAEDO and AEDO later this year. It says what it does - a process that will enable you to “check” and electronically approve any pending debit order collections from your account initiated by a company or organization.
Why the change
During the last couple of years, debit order abuse has escalated.
1There has been an increase in the number of debit orders being processed to consumers’ bank accounts without their consent.
2On the other hand, consumers have increasingly been disputing debit orders, which they actually have agreed to, mostly to manage their cash flow.
The South African Reserve Bank (SARB) reviewed the debit order landscape and during 2013 instructed the Payments Association (PASA) and the banks to address these issues. DebiCheck aims to solve these issues by introducing electronic consumer confirmation for all DebiCheck debit orders.
Is it safe
The DebiCheck system is secure and safe to use as it was designed by the banks, under the oversight of PASA and the Reserve Bank according to strict industry standards.
DebiCheck: Are you ready?
- A Debicheck debit order is one that you confirm, electronically on a once-off basis (at the start of your contract).
- Its purpose is for you to confirm the details of the debit order with your bank before it is processed to your bank account.
Why the need to electronically confirm debit orders?
It ensures that you are in control of and aware of debit orders being processed to your bank account. Additionally, it provides the company that you are dealing with, with the comfort of knowing that you have acknowledged and are aware of these debits orders. It also allows your bank to record the debit order information and to check the information before they process the debit order to your account.
To electronically confirm your debit order means that you confirm the details of your debit order on an electronic device such as your cellphone, your bank app, your personal computer or perhaps an ATM. Your bank will let you know which options are available for you to use.
What is the difference between DebiCheck debit orders and other debit orders?
The difference between Debicheck debit orders and other debit orders is that Debicheck requires an electronic confirmation whereas the normal debit orders do not. This means that your bank will now have a record of all Debicheck debit orders and will be able to verify the information before the debit order is processed to your account.
Currently, banks do not have record of your debit orders and therefore cannot verify that the debit order information is correct before they process your debit order.
How often will I need to confirm my DebiCheck debit order?
You will only need to confirm your debit order information at the start of the contract. However, if the debit order information that, you confirmed changes; your bank will ask you to confirm the new information. What do I need to do as a consumer? For existing debit orders – nothing. For new Debicheck debit orders, you will need to check and confirm the new debit order information in the manner requested by your bank. Either this could be in person (face-to-face), using online banking or your banking app or remotely by call centre or a request sent via your mobile phone.
So what can I do in preparation of Debicheck or to be ready for Debicheck?
- Ensure your bank has your latest/updated cellphone number.
- Familiarize yourself with your banks Debicheck process.
More information will be sent out through user guides.
