DebiCheck authentication channels explained
The New Way To Collect
South Africa is the only country in the world that has implemented the he Early Debit Order (EDO) collection system. The EDO system consists of both the AEDO and NAEDO payment streams and have been in existence since 2006 to ensure a fair playing field for all participants.
The AEDO system provides authentication through an electronic mandate using card and pin technology, making disputes virtually impossible.
The NAEDO system on the other hand uses paper based or voice recorded mandates to authorise debit order transactions.
To protect both the sides of the transaction the South African Reserve Bank has requested PASA to develop a new system called DebiCheck to replace Early Debit Orders (EDO).
Authenticated Collections (DebiCheck)
DebiCheck Collections will give consumers upfront knowledge about their debits through an electronic authentication process, ensuring that debits will be authorised legally and rule out any cash flow management strategies from abusive consumers.
Migration And Initiation
From a systems and product perspective, Direct Debit can provide Users with one of the following two mandatory transaction types, while offering three alternative debit order mandate initiation options (bulk file upload, automation and debit order API integration):
Transaction Type 1 – Real Time (Real-time and delayed) and
Transaction Type 2 – Batch (Non-face-to-face).
The process of authenticating a DebiCheck debit order consists of 3 steps:
1. Initiating or migrating a debit order mandate through our bulk upload system, automated system or debit order API integration
2. Validation and verification of the payer (account holder’s account) by his/her paying bank and
3. Authorization of the mandate by the payer (account holder) through accepted authentication channels for each sponsoring bank.
The customer (account holder) can authenticate the DebiCheck debit order via the following authentication channels:
• Message on Cell phone (USSD)
• Banking App
• Online Banking
• In-branch Banking
• Via Contact Centre
• POS Device
The Benefits of DebiCheck Collections
Lower Dispute RateThe DebiCheck authentication system will ensure a lower amount of debit order disputes by initially authenticating mandates with your customer (the system will make it a lot more difficult for a customer to dispute who has already authenticated).
Eliminate Abuse by ConsumersThe DebiCheck system will eliminate abusive cash flow management strategies from consumers through electronic mandate authentication.
Continued TrackingThe DebiCheck system will still allow transactions to be tracked for a better chance of obtaining your fees for services rendered.
Legal RecourseThe DebiCheck system will ensure you have legal recourse should the customer decide to no longer make payment for services as a debit order mandate authentication is considered a contract between you and your customer.
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