What is DebiCheck and how can it help you?

Debit orders are a convenient way to make payments on a regular basis, be it to a gym, a creditor, or an insurance provider.

However, the rising incidence of debit order abuse has called for a solution. This has arrived in the form of DebiCheck.

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The issue of debit order abuse

Charmaine Stainton, change manager on the DebiCheck programme, explains that debit order abuse has become a major problem in South Africa.

“Some companies have been processing invalid debit orders to bank accounts without the consumer’s consent, illegally deducting money which consumers had not agreed to,” she says.

“Conversely, some consumers have avoided paying legitimate debit orders by unfairly questioning and reversing these debit orders with their banks.”

The solution: DebiCheck

To address these issues, the South African Reserve Bank (SARB) tasked the Payments Association of South Africa (PASA) to provide a solution. The answer was DebiCheck.

Under the DebiCheck system, any new debit order will need to be confirmed with your bank on a once-off basis. The confirmation method will depend on what your bank can offer but may be done via a banking app, internet banking, an ATM, a call centre, or within a branch.

The bank will be aware of the conditions of your new contract, and no DebiCheck debit order will be processed if it falls outside the terms that you’ve agreed upon.

According to Stainton, the system has been widely adopted but is not yet universal.

“Many companies have chosen to go the DebiCheck route and will continue to do so over time. Customers will need to check with their suppliers as to whether the DebiCheck system is in place.”

READ MORE: Is it worth increasing debit order payments?

How can DebiCheck help you?

Security is the primary benefit of the DebiCheck system.

Stainton notes, “With DebiCheck, consumers will now have the comfort of knowing that the ongoing debit order abuse saga is being addressed. The system is protecting consumers from unscrupulous companies and placing control back in the account holder’s hands.”

READ MORE: Use debit orders to boost your savings