On Saturday (17 November 2018), WesBank become one of the first vehicle and asset finance house to implement DebiCheck.
DebiCheck is a specific type of debit order where consumers accept, electronically and on a once-off basis at the start of their contracts, the details of the debit order with a bank before it is processed.
DebiCheck is an industry-wide solution to the ever-increasing issue of debit orders being processed to bank accounts without permission or consent from consumers, and an increase in the number of consumers who dispute debit orders where a valid mandate is in place.
This issue has become a concern for banks and companies in the financial sector over the past few years, and as a result, the South African Reserve Bank (SARB) has recommended that the Payments Association of South Africa (PASA), which includes the South African Banks, implement DebiCheck as a suitable solution.
“With the improvement and advancement of technology across various industries we have seen an increase in fraudulent activities, particularly in the finance sector,” says Ghana Msibi, WesBank’s executive head for sales and marketing. “The implementation and rollout of DebiCheck will serve a great deal in fostering trust relationships between the bank and consumers. As WesBank, we are proud to be the first within the Vehicle and Asset finance space to pilot the DebiCheck system to our consumers ahead of the set schedule time, with 1700 dealers going live November 17, 2018.”
For DebiCheck debit orders to be correctly processed, a consumer will receive a request from their respective bank to electronically confirm the debit order information. The bank will then be required to verify the information before the debit order is processed to the consumers account.
If the information is correct and matches the required fields, the debit order will be processed. If the information provided does not correspond, the debit order will be rejected. If a consumer does not agree to be DebiChecked during the sale, the sale cannot be processed by the financial institution.
Consumers need not do anything for existing debit orders, but from 17 November 2019, every new debit order must go through the DebiCheck process. This means that new customers will need to check and confirm the new information in the manner requested by the bank. They will also need to make sure they recognise, and are comfortable with, the creditor, the collection/debit order date and the amount to be debited before accepting. For the consumer’s protection, the financial institution needs to ensure that all new debit orders are authorised by the consumer, prior to the debit order payment.