DEBIT orders make life easier, but they can create extra stress as well.
Setting up debit orders through the bank can save on administration hassles, but the problem comes in when people discover unauthorised debit orders stealing cash from their accounts.
The rise in claims of unauthorised debit orders has forced banks to create a solution.
DebiCheck is a service that requires the customer to verify each specific type of debit order before it pays its first debit order. The customer is notified to accept and authorise the debit order on her or his account.
The South African Reserve Bank has recommended that the Payments Association of South Africa, which includes South Africa’s banks, implement DebiCheck to fight dodgy debit orders.
Ghana Msibi, WesBank’s executive head of sales and marketing, said the implementation and roll-out of DebiCheck helps to mend the constantly uncertain trust between banks and customers.
He said WesBank was the first vehicle and asset finance provider to adopt DebiCheck when it started last month.
“DebiCheck’s services need debit orders to be correctly processed. The customer with an account receives a request from her or his bank to electronically confirm the debit order information. This authorises the debit order to start.
“It is a once-off action, so the customer does not have to keep replying and re-authorising every month for every debit order. The debit order works automatically every time afterwards, as it should.”
Msibi said if the information is correct and the required fields all match, the debit order is processed.
“If the information provided does not correspond, the debit order will be rejected.”
He said people need not do anything for existing debit orders, but from 17 November this year every new debit order must go through the DebiCheck process.
This means that new customers will have to double check and confirm the debit order information in the manner requested by the bank.
The customers also need to make sure that they recognise and are comfortable with the creditor, the collection or debit order date and the amount to be debited before accepting it.
The national roll-out of DebiCheck for other banks and other institutions happens next year.
For more information, visit www.debicheck.co.za
