What is the difference between a debit order and an early debit order?
Both debit orders and early debit orders are facilities that allow for a third party to collect money from your account. An early debit order is simply processed close to a credit payment, which means that after your salary is processed, the early debit order is processed against your account.
There are three types of early debit orders:
An Authenticated Early Debit Order (AEDO) which enables an account holder to mandate the contracted future dated early debit orders through the use of his/her bank cards by entering a PIN.
A Non-Authenticated Early Debit Order (NAEDO) would allow qualifying service providers and consumers transacting with such service providers the equivalent benefit of AEDO, however without the PIN authentication requirement.
Authenticated Collections (AC) is the process whereby consumers will electronically confirm to their bank that they are in the process of doing business with a company/user and that they agree to the details of the specific Debit Order series. Once the consumer has authenticated the Debit Order series, the bank will check the collection from the company/user against the consumer’s authenticated mandate to ensure that the debit is within the parameters the consumer agreed to, prior to processing.