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More information on DebiCheck

Will DebiCheck allow my clients to cancel their debit order?Your client will be able to suspend your DebiCheck debit order with their bank, which means the debit order will not be processed to their account in future. They should still contact you, the service provider to confirm that they are cancelling the debit order. Suspending the debit order with their bank does not cancel the contract that they have with the service provider.
Is it a new type of debit order?Yes, DebiCheck is a new type of debit order. It is a debit order which you have electronically confirmed the debit order information, with your bank.
Will DebiCheck require extra effort and time?Yes. It will require the client to check the message that their bank sends to ensure the debit order information is correct and then to confirm the information in the way their bank requires. It may be as simple as pressing confirm on their banking app, typing in a ‘1’ on a USSD string or typing in a code on their cellphone. The way in which they can confirm their DebiCheck debit order will be communicated to them by their bank. It is therefore important that their contact details, especially their cellphone number, is up to date with their bank.
How will it work?For DebiCheck debit orders, the client will receive a request from their bank to electronically confirm the debit order information relating to the new contract they have signed with a company. Once they confirm that the information is correct, their bank will load the information on a mandate register. Their bank can then verify the information every time before the debit order is processed to their account. If the information matches, the debit order is processed. If not, the debit order is rejected.
Do the client have to confirm a DebiCheck every month?No, only at the start of their contract. Or, if any of the information confirmed originally, changes.
Why do they need to confirm a debit order again if they have already signed a contract with the service provider? DebiCheck allows the client to confirm the details of their debit order with their bank, which in turn allows their bank to know what they have confirmed. Their bank will therefore be able to verify the debit order information before the debit order is processed to their account.
Does it mean that if the debit order provider does not participate in DebiCheck, the client will not be protected? No, as a consumer, clients are always protected. Irrespective of the type of debit order, there always has to be a mandate in place that they have agreed to.
Is there a mobile application for DebiCheck?No, there is no separate mobile application for DebiCheck.
Is DebiCheck a third party between consumer and the bank? No DebiCheck is not a separate company / third party. DebiCheck is the name of a new type of debit order that was developed by the South African banks.
Why is DebiCheck being introduced?Over the last few years, there has been an increase of debit orders being processed to bank accounts without permission (a mandate) from consumers. On the other hand, consumers who dispute debit orders that do have valid mandates, has also increased, which has become a huge concern for banks and companies. As a result, the South African Reserve Bank (SARB) asked the Payments Association of South Africa (PASA), which includes the South African Banks, to find a solution. That is why, in 2017, the industry will be launching DebiCheck. Implementation will be carried out over a period of more than 2 years, which means that participating companies will start using DebiCheck over this period. Not all companies will start using DebiCheck at the same time; it will be phased in over a period of time to ensure that the system remains stable.
What are the benefits to me, the User?If you are a User wanting to collect money in the Early Processing Window, you will be required to participate in the new system. Being a DebiCheck User means that you will have the benefit of receiving confirmation that mandates, already authorised by your customer, are being stored by his / her bank. This will result in less disputes with “no authority to debit” and provide you with improved protection against consumers abusing the system for cash management purposes.
What do I have to do from a technology perspective? What actions are required to implement DebiCheck?Any User who wants to make use of the DebiCheck system as a collection method will have to engage with their sponsoring bank to obtain the User specifications. These specifications must be used to develop the processes and connectivity to be able to utilise some or all of the available authentication methods, submit payment files for processing, receive response files and effect amendments to the mandated details stored at the consumer’s bank. Depending on your type of business, authentication technologies and processes are available for face-to-face and / or remote interaction, and batch or real-time processing.
How much will this cost me?There will be internal development cost to implement the new system and processes, which you will have to calculate and manage based on the specifications supplied by your sponsoring bank. Please contact Direct Debit for estimated pricing on DebiCheck.
Is it mandatory to participate?If you want to collect in the Early Processing Window, you will have to participate as a DebiCheck User. Alternatively, you may choose to do your collections in the normal EFT debit order run.
How do I register to become part of DebiCheck?Contact your Direct Debit to register for the DebiCheck service. If you currently process Authenticated Early Debit Orders (AEDO) or Non-Authenticated Early Debit Orders (NAEDO) transactions, do not assume that you will automatically have access to the DebiCheck system.
Will I receive technical support?Different Users will require different levels of technical support. Direct Debit will supply the specifications and assistance as needed.
How will we be relaying the messages publically to support consumer education?The industry has created a DebiCheck Toolkit. The toolkit includes standard messages that both banks and Users should use when communicating to consumers. There is also pre-designed (yet customisable) material, such as posters, flyers, e-mailers and brochures, available.
What support and rights do I have?As a User, you have the support of Direct Debit. If you have any additional questions that you cannot find answers to in the available correspondence, your first point of contact should be Direct Debit. You have the right to participate in the new DebiCheck system if you implement the changes and meet the requirements and rules for participation.
As a User, how do I manage education and value to my customers?Discuss your marketing ideas with your debit order provider and get approval for the message you want to communicate – especially in the initial stages where there may be uncertainty and conflicting information. All communication must consider the industry DebiCheck communication guidelines.
Is there a platform that I can capture or integrate with? Or do I need to develop my own?Direct Debit will provide the specifications and description of the process, but generally you will have to use our systems with changes implemented.
Is there a way of simplifying this process while still being compliant?Right now, unfortunately not. The industry needs to implement and run the system for a few months to see what works well and where improvement is required. Once there is a better understanding, there may be changes introduced to simplify the process.
What will happen to Authenticated Early Debit Orders (AEDO) and Non-Authenticated Early Debit Orders (NAEDO) once DebiCheck is introduced?AEDO and NAEDO will continue to run, but will be phased out over time. No new AEDO or NAEDO mandates will be allowed after 31 October 2019 and from 1 November 2019, only DebiCheck debit orders will be allowed for processing in the early processing window.
What happens if my company is not ready to move across onto the new system? Can my company continue to use Non-Authenticated Early Debit Orders (NAEDO) for collections?Yes, but only for a limited time. Users will be on-boarded over a period of two and a half years, starting with the pilot phase in July 2017.
more_information_on_debicheck.txt · Last modified: 2019/03/08 11:54 by Kyle Liebenberg