The South African Reserve Bank (SARB) has announced that it will implement the AC / DebiCheck payment system from May 1 as part of its modernization efforts.
The SARB said the project was aimed at addressing increasing levels of abuse in the debit order payment system, known commercially as the Advance Debit Order (EDO) payment system.
“From May 1, 2021, all new and renegotiated EDO mandates will come from the AC / DebiCheck payment system and not the current EDO payment system,” he says.
“Advance debit orders will only be processed through the AC / DebiCheck payment system, while normal debit orders will always be processed later in the day, in accordance with applicable provisions.”
How it works
Under the EDO system, consumers mandate a business or user to collect money from their bank account.
In the new AC / DebiCheck payment system, this mandate is now given to banks – where consumers authorize their bank to release funds from their account when a debit order is submitted by a company or user they purchased from. goods or contracted for a service.
The AC / DebiCheck payment system was first implemented on August 1, 2018 and has gone through various stages and processes of testing and integration.
Companies or users of the EDO system had until November 1, 2019 to fully implement the AC / DebiCheck payment system. Since the implementation date, companies or users have been advised to start using the system for all EDO collections.
“Due to the complex nature of the AC / DebiCheck system, a long ramp-up period was required to ensure that all stakeholders in the EDO collections ecosystem had implemented and tested their internal processes and interfaces with the AC / DebiCheck payment system, ”said SARB.
The central bank added that the AC / DebiCheck project is a collections industry initiative that ensures the safety and effectiveness of the NPS, as well as the mitigation of rogue and fraudulent behavior in the collection system.
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