South African Reserve Bank makes changes to the old debit order system
The South African Reserve Bank (SARB) has announced it will be making some changes to the debit order system as from the 1st May 2021. This comes after the SARB saw an alarming increase of abuse in old Early Debit Order (EDO) payment system. In a statement released by the SARB, it says: “From May
South African Reserve Bank makes changes to the old debit order system
The South African Reserve Bank (SARB) has announced it will be making some changes to the debit order system as from the 1st May 2021. This comes after the SARB saw an alarming increase of abuse in old Early Debit Order (EDO) payment system.
In a statement released by the SARB, it says: “From May 1, 2021, all new and renegotiated EDO mandates will be originated in the AC/DebiCheck payment system and not in the current EDO payment system.”
“Early debit orders will only be processed through the AC/DebiCheck payment system, while normal debit orders will still be processed later in the day as per current arrangements.”
What’s changed?
The EDO system: Consumers would provide a mandate (give authorisation) to a company/user to collect money from their personal/business bank account.
The AC /Debi Check payment system: Now firstly notifies consumers to provide a mandate(authorisation) to the banks to release funds to a company/user once a debit order has been submitted to the banks. The AC/Debi Check system comes at a time where consumers now will be provided with the assurance with safety of minimizing rogue and fraudulent behaviour in the bank accounts.
Article Credit: Mpho Jack
