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what_must_a_naedo_debit_order_mandate_contain

What must an NAEDO debit order mandate contain?

Abbreviated names must reflect the Users registered or Trading Name.

The User’s Abbreviated Name and Agreement Reference must reflect on the mandate which the customer signs. The User’s Abbreviated Name and Agreement Reference used must remain the same for the duration of the contract and may not change regardless of the service used.

In the event of assignment/cession the User’s Abbreviated Name and/ or Agreement Reference may be changed.

The notice must reflect the User’s new abbreviated name/ agreement reference and must be kept as an addendum to the mandate.

Mandates are revoked under the following conditions:

  1. Stop payment
  2. Direct instruction from the customer to the user
  3. Terminated services
  4. Changes to the conditions under which the mandate was given
  5. If the debit order is unpaid on two consecutive occasions
  6. Account closed

Users must retain such authority, for a period of (5) five years, after payments have ceased. If a customer disputes a transaction it is the responsibility of the User to provide proof of the mandate even though the payments have ceased, or be liable for the claim.

The inability to produce a valid mandate or authority shall be deemed evidence that no valid mandate or authority existed or exists.

Paper Mandates

Mandates must conform to the minimum requirements as specified.

1. Agree the following information with the customer:

  • Account number
  • Type of account
  • Branch number
  • Abbreviated short name
  • Contract reference
  • Frequency of debit
  • Action date
  • Start and termination date
  • Beneficiary name
  • Beneficiary contact details
  • Amount
  • Escalation of amount
  • Variable amounts
  • Maximum limits

2. Inform the customer of the specific points as stipulated on the specimen form.

3. Identify and indicate the Agreement from where the amounts payable will be calculated:

  • indicate the payment cycle for payment;
  • indicate the first date of payment; and
  • indicate that the amounts payable will be paid, using payment instructions collectable from available funds held by the account holder’s bank in the form of a monetary claim in the account of the account holder

4. Obtain authority to debit.

5. A copy of the signed mandate must be provided to the account holder prior to any debit being processed to the account of the account holder in terms of the mandate.

6. The mandate must make mention of tracking and state that tracking will be implemented on account at no cost to the customer.

Voice-Recorded Mandates

Voice-recorded mandates are to comply with the following criteria:

  1. The details as set out in the specimen voice recorded mandate must be obtained from a customer.
  2. The voice recorded mandate must be confirmed to the account holder in writing to the account holder within 21 days of the taking of the mandate and prior to any debit payment instructions being processed to the account of the account holder.
  3. A customer must be made aware of the fact that his/her voice is being recorded and that the recorded message will be accepted as the official authority to debit.
  4. A customer must be made aware of the unique contract reference and abbreviated short name to be reflected on the account holder’s bank statement.
  5. The use of Voice recorded mandates must be approved by the Bank prior to the commencement of processing.
  6. Recording devices must be reliable and with acceptable acoustic quality (preferably SABS approved).
  7. The recorded messages must be properly indexed for easy accessibility to promptly deal with enquiries and disputes.
  8. On request from the Bank, a recording of the mandate must be produced within 10 days of receipt of such request.
  9. The voice mandate must make mention of tracking and state that tracking will be implemented on account at no cost to the customer.

Electronic Mandates

Direct Debit provides a ready made electronic mandate framework that removes challenges associated with manually signing debit order mandates. Saving you on costs and lengthy waiting periods associated with the signing of paper based debit order mandates.

Digital mandate authorisations are stored in a tamper proof vault (in the cloud), keeping you protected from future customer disputes.

The cloud-based electronic debit order mandate solution which allows your customers to sign and authorise your debit order mandate from anywhere and on any device. Some notable features include:

  • Electronic acceptance and signing of the mandate on any device (computer, tablet or smart-phone)
  • Advanced signature authentication
  • Fully customisable (your own terms and form fields to complete)
  • Pre-complete mandate by sending us your customers information in the URL as query string
  • Storage and backup of the mandate in encrypted PDF format
  • Sign up new customers anywhere and from any device
  • Easy integration with existing systems

1. Mandates must conform to the minimum requirements as specified:

  • Account number
  • Type of account
  • Branch number
  • Abbreviated Short name
  • Contract Reference
  • Frequency of debit
  • Action date
  • Start and termination date
  • Beneficiary name
  • Beneficiary contact details
  • Amount
  • Escalation of amount
  • Variable amounts

2. Inform the customer of the specific points as stipulated on the specimen form.

3. Identify and indicate the Agreement from where the amounts payable will be calculated;

  • indicate the payment cycle for payment;
  • indicate the first date of payment; and
  • indicate that the amounts payable will be paid, using payment instructions collectable from available funds held by the account holder’s bank in the form of a monetary claim in the account of the account holder

4. Obtain authority to debit through an electronic signature.

5. A copy of the signed mandate must be provided to the account holder prior to any debit being processed to the account of the account holder in terms of the mandate.

6. The mandate must make mention of tracking and state that tracking will be implemented on account at no cost to the customer.

what_must_a_naedo_debit_order_mandate_contain.txt · Last modified: 2015/09/30 10:25 by Jaco van Wyk