Are you tired of institutions and service providers deducting double the amount from your bank account without any warning? It is extremely unpleasant when you find less money in the bank and upon inquiring, notice a service provider has deducted more than what was agreed upon. DebiCheck is a new system that is aimed at giving control of debit orders back to clients.
What is DebiCheck?
DebiCheck is a system that sends the client an SMS or pop-up message on their banking app and asks for confirmation before allowing a debit order to be deducted from your bank account. As the client, you can also deny a debit order. In other words, clients have to approve or verify debit orders. This is great news for clients since banks cannot process debit orders that fall outside the terms and conditions that have been agreed upon.
This unique system has been welcomed by no less than seven (7) banks in South Africa. This includes: Ubank, Nedbank, Standard Bank, Bidvest, Capitec, Absa and First National Bank. The system forms part of the Payments Association of South Africa (Pasa) and as such is regulated by the organization.
It is interesting to note that the system has been developing since 2013 and cost more than R4 billion.
The advantages of DebiCheck
Until recently, the debit order system in South Africa hasn’t exactly been flawless. Almost everyone has been affected by an incorrect amount being deducted from your bank account without your consent. In order to pick up on these incorrect debit orders, one has to keep a close eye on your bank account. If you should stumble upon a mistake, you will go to the bank, wait in a long queue and ask the cashier to reverse the debit order. This can be a long and tedious process.
The aim of DebiCheck is to reduce fraud and create a better relationship between banks and clients. It takes the hassle out of debit orders and gives clients peace of mind that no money can be deducted from their accounts without their consent. It is evident that with the increasing popularity in non-bank payment systems like WhatsApp Pay, google and SnapScan, consumer confidence in banks are low.
With the introduction of DebiCheck to the industry, Pasa hopes to restore the relationship between banks and clients.
How does DebiCheck work
At the moment, DebiCheck is not applicable on existing debit orders. In the case of new debit orders, please consult with your bank to comply with the required processes. You can also visit the DebiCheck website – www.debicheck.co.za – for more information. Alternatively, your bank should be able to answer questions pertinent to the new system.
Please note that the service providers have the option of joining the DebiCheck system or not. It does not mean that if your bank uses the system, all service providers will use it as well.