Debit Order Collections

Let our Online System help you by having the most dynamic way of collecting Debit Orders from your clients.

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We strive to make Debit Order collections as simple and easy as posible, while giving our clients the flexibility to collect in the way they want say it be a once off, Monthly, Yearly or even Quarterly.

Our system handle all the difficulties like tracking payments, unpaids and disputes.

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EFT Debit Orders

Decuct Debit Orders from bank accounts for easy collections.

NAEDO Deductions

This is a debit order collection system that allows you to process your debits closer to the bulk salary payment window, thereby improving the likelihood of successful collections.

Online System

Our Online System is full of features enabling you to manage your Debit Orders and Payments more efficiently. More importantly, the console enables you to manage all of your collections from one point from anywhere any day of the week.

Account Verification

Account Verification Service (AVS) is a service which gives our Users the ability to verify certain bank account details of a Consumer.

Mass Upload

With Mass Upload function you can upload files with multiple records with one click. It saves you from the pain of loading each record by hand.


Debit-order changes to favour you

In a world first, South African banks will soon start asking you, the customer, to verify new debit orders on your account to ensure that they are authentic.

The abuse of debit orders is rife and on the increase, with an “alarming” one million disputes lodged by customers every month, according to the Payments Association of South Africa (Pasa).

Part of the problem is the very nature of the debit order, which is an instruction or agreement between you and a supplier, to allow payment directly from your account. For this reason, you can’t instruct your bank to cancel an agreement to which it is not party. Such an instruction must be issued to the supplier, and it must come from you.

Issuing an instruction to a supplier may be easy. Getting the supplier to comply can be anything but. And it’s certainly not easy when the debit order is unauthorised and/or the supplier is an overseas company and you have no idea how it obtained your banking details, let alone the goods or services it has allegedly supplied to you.

Banks have never kept debit order mandates, and when customers complain about problem-atic or dubious debits, they are typically told to take it up with the company concerned.

You can dispute a debit order with your bank, but not before you have tried to resolve the dispute with the supplier that debited your account. Your bank can load a stop payment on your account, but this stays on the system for three to six months, depending on the bank, and there is nothing stopping that same company from using another name and/or another amount to dip into your account the following month or at a later date.

Debit order abuse also refers to when a company processes a debit order to a consumer’s bank account for the wrong amount or with an expired mandate – for example, when a gym contract has come to an end.

It’s not only rogue companies who are abusing the system. Consumers do it too. They ask their banks to reverse debit orders – claiming that the supplier has “no authority to debit” – knowing full well that a valid mandate is in place. They do this when they are short of cash. This obviously has an adverse impact on businesses.

To reduce debit order abuse, South African banks will, in future, authenticate debit order mandates with their customers and maintain a database of mandates to ensure that debit orders on your account are within the parameters that you agreed to. This is in terms of the Authenticated Collections Project, an initiative by Pasa.

Authentication will be phased in, starting with “early” debit orders (see “Types of debit orders”, below), of which there are about 15 million. The banks aim to authenticate all early debit order mandates by the end of September. And from October 1, all new early debit orders must be authenticated electronically.

The authentication and storing of debit order mandates by banks signifies “a massive shift of onus and responsibility”, Walter Volker, Pasa’s chief executive, says. “It gives the customer and the bank a warning of mandates lodged.”

Consumers will now know who is debiting their bank account, when they will debit it and how much will be debited, he says.

The project will go a long way to curbing illegitimate debit orders, complaints and, ultimately, fraud, Volker says.

In terms of the project, you will electronically confirm to your bank that you have an agreement with a company and the details of a specific debit order.

“Once you have authenticated your debit order, the bank will check the debit order payment instruction from the company/user against your authenticated mandate, to ensure that the debit is within the parameters you agreed to, prior to processing it.”

An electronic authentication might be achieved via SMS from your (the account holder’s) bank, which is then confirmed by you. Alternatively, authentication might be by way of you presenting your card and entering your PIN inside a store.


Broadly speaking, there are two types of debit orders: normal debit orders and early debit orders. A normal debit order is processed in the late afternoon, whereas an early debit order is processed in the early morning (through what is known as the “early processing window”), Walter Volker, the chief executive of the Payments Association of South Africa (Pasa), says.

* An early debit order is an enhancement and variation of a normal debit order, having features such as “credit tracking” (when money goes into the account it triggers an early debit order transaction).

There are two types of early debit orders: authenticated and non-authenticated. The latter category is where most of the abuse occurs.

Every month, an “alarming” seven to eight percent of about 14 million non-authenticated early debit orders (naedos) are disputed, according to Pasa. That equates to about one million disputes a month.

Volker says this figure is way above the thresholds set by the industry to monitor efficiency in the system. The current threshold is 0.5 percent for disputes, indicating the need for action.

With a naedo, a mandate may be authenticated by means of a signature or a voice recording, whereas, with an authenticated early debit order (aedo) – which is for a fixed amount and for a fixed term, as in the case of a personal loan, for example – the mandate is authenticated at the time the agreement is concluded between the consumer and the supplier, and authentication is done using your bank card: you are required to swipe or insert your card in the service provider’s card terminal and enter your PIN. The mandate is then captured by the service provider and electronically authorised/authenticated by you.

The validity of aedos may not be disputed by you, unless you suspect fraud. Aedo fees are similar to or the same as debit card transaction fees, and there are generally no penalty fees for declined transactions.

Benefits for both you, the account holder, and the supplier include the absence of disputes and reversals. Aedos are more costly for the supplier because of the cost of using terminals.

There are currently only about one million aedos in use.

* Normal debit orders are by far the most common type of debit order in South Africa: 33 million of the 48 million-odd debit orders that are processed monthly are of this type.

Here’s the plan to fight debit order fraud in SA

The Payments Association of South Africa says it has a plan to take on unauthorised debit orders in the country, and fine the companies responsible.

Speaking to TimesLive, the group said that it will implement a system which will fine companies or groups that process debit orders R1,000 for every transaction that is not authorised by an account holder.

The system will take a statistical sample of debit orders processed and measure how many transactions were unauthorised. The company will then be fined according to that scale.

As an example, Pasa said that if 80% of the transactions in the sample are found to be unauthorised, the fine will relate to 80% of the entire database, at R1,000 per transaction.

The group is developing this “scientific method” so that its process can stand up in court, if challenged.

Pasa is also working with local banks to implement the Authenticated Collections Project, which will see banks sending electronic notifications to customers informing customers that they are in business with certain companies.

All new early debit orders must be authenticated electronically as from 1 October 2016, it said.

Debit order fraud in South Africa is a big problem, compounded by the onerous process involved with identifying and reversing the orders with local banks.

Until the new systems are in place, it is up to banking clients to identify and reverse false debit orders with their bank. The transactions are typically under R100 – as to avoid notifying banking clients – and any company can process the transactions with very few details needed.

According to Pasa, there are currently 33 million “normal” debit orders to the value of R61 billion processed each month in South Africa.

Additionally, 14 million Non-Authenticated Early Debit Orders (NAEDO) and 1 million Authenticated Early Debit Order (AEDO) transactions are processed early.

The group said that about 8% (1.12 million) of all NAEDO transactions are disputed.

More on debit order fraud

Beware: debit order fraudsters are back

1 million debit order disputes in SA every month

Beware R99 debit order scam in SA

Debit order fraud in SA – report


Debit order facilities to be removed from social grant cards

BY LINDA ENSOR,  06 MAY 2016, 11:26

THE Social Security Agency of SA (Sassa) is to instruct Cash Paymaster Services on Friday to remove the debit order facility from the Sassa branded card issued to the beneficiaries of social grants.

The instruction forms part of government’s bid to stamp out deductions from social grants which impoverish beneficiaries. It will require Sassa to terminate all existing debit orders on social grant payments to beneficiaries.

Revised regulations under the Social Assistance Act are also due to be published which will clarify what deductions from social grants are legally permissible and the level of consent required for them to take place.

Social Development Minister Bathabile Dlamini was critical at a media briefing Friday of the "predatory practices which seek to exploit the gaps in the current regulatory framework for the financial services sector".

She was also critical of Cash Paymaster Services (CPS), a subsidiary of Net1, which pays grants on behalf of Sassa.

The minister said the government was "deeply disappointed" with CPS, which she said "seems to be profitably participating in questionable activities through subsidiary companies under the umbrella of their parent company Net1."

CPS had failed to control deductions which resulted in 13,000 disputes last year. In February alone, Sassa received more than 46,000 queries, about 15,000 of which related to air-time deductions.

"A new challenge has emerged called Easy Pay Everywhere, also referred to as the Green Card. It is a bank account issued by Grindrod Bank (on behalf of Moneyline, another subsidiary company of Net1). We are currently investigating cases where sales staff have allegedly told beneficiaries they needed an Easy Pay bank account to receive social grants as their Sassa branded cards are invalid.

"They all pay a R10 monthly service fee and a fee for all cash withdrawals. Services on the Sassa branded card are free in the Sassa network," the minister said.

Ms Dlamini said the new regulations would "put an end to the tide of unauthorised and unlawful deductions. We have been in consultation with the National Treasury, the South African Reserve Bank and the Financial Services Board and believe that there is an in-principle support for these regulations."

The regulations require that a grant beneficiary must in person provide written permission to Sassa for a deduction. Only insurers registered under the Long Term Insurance Act will be able to offer funeral policies. Funeral policy premiums will have to be paid directly to the insurer and no payments to brokers will be allowed. Funeral deductions from child support grants will be forbidden.

Ms Dlamini also announced measures taken by Sassa to facilitate dispute reporting and settlement.