The South African Reserve Bank will be implementing the AC/DebiCheck payment system from 1 May.
Ever tried to get rid of the R99 debit order with no success? According to the SARB, this new project aims to curb the increasing levels of abuse in the debit order payment system, commercially known as the early debit order (EDO) payment system.
What all this means is that early debit orders will only be processed through the AC/DebiCheck payment system and normal debit orders will continue to be processed later in the day as per current arrangements.
Consumers will now have more control over their debit orders.
Before 1 May 2021, consumers would have to provide a mandate to a company or user to collect money from their bank account.
In the new AC/DebiCheck payment system, the mandate for payments will be given to the banks and consumers will provide authorisation to their bank to release the funds from their account when a debit order is submitted from whom they bought the goods or contracted for service.
According to Business Tech, the AC/DebiCheck payment system will also help curb the rise of unscrupulous debit orders and make banking safer and collections more effective.
The AC/DebiCheck payment system isn’t entirely new, it was first implemented on 1 August 2018, and has been going through rigorous testing and integration.