DebiCheck Powered by Payments Association of South Africa (PASA) for South Africa
Over the past number of years, debit order abuse has become a major issue in South Africa. Concerns include bad behaviour by some companies that process invalid debit orders against consumer bank accounts. In addition, some consumers avoid paying valid debit orders by unfairly disputing these with their banks.
As a result, the Reserve Bank asked PASA (the Payments Association of South Africa), which includes the South African banks, to find a solution.
In order to address these issues, DebiCheck is now a PASA requirement. DebiCheck is an industry wide initiative that lets consumers approve new debit orders – electronically on a once-off basis – to prevent incorrect debit orders from going off their account at the start of a contract or policy.
It is necessary for us to roll out the DebiCheck debit order system next year -the good news is that it will offer us a better collection experience and should have a positive effect on our ROI.
We’ll keep you updated on what you need to know, over the next few weeks. In the meantime, check out these FAQs or watch the video.