For the financially astute citizens amongst us, we have some important news to bring you: As of this Saturday, South Africa will be operating from a new debit order system – and we’ve got all the details here.
The South African Reserve Bank (SARB) will introduce the Authenticated Collections AC/DebiCheck project from 1 May 2021 as part of its modernisation of the national payment system (NPS). This will then allow people to release funds from the accounts digitally when a debit order is sent over by either an individual or an actual 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
All new and renegotiated Early Debit Order (EDO) mandates will now be originated in the AC/DebiCheck payment system from next month and not in the current EDO system. Companies or users of the system had until 1 November 2019 to fully implement the AC/DebiCheck payment terminals
SARB has also revealed that this project is an initiative of the collections industry, which ensures the safety and efficiency of the NPS, and the mitigation of rogue and fraudulent behaviour in the collections system.