What is DebiCheck? Everything you need to know
Debicheck meaning
DebiCheck is a type of debit order that gets confirmation from you before a debit order is granted. In practice, if you’ve signed a credit agreement for a debit order for a new gym membership for example, you will receive a text message confirming this debit order agreement.
DebiCheck mandate meaning
A DebiCheck mandate refers to the same process. It is the electronic confirmation that the debtor (consumer) gives the bank regarding the debit order. Electronic confirmation is usually done via SMS, internet banking or a banking app or email. This confirmation is sent through at the start of the contract and only again if key information has changed.
The advantages
- Significantly reduces the amount of fraudulent debit orders.
- It's a once-off electronic confirmation, so after you’ve approved the agreement, you won’t have to revisit it.
- It’s a way for you (the consumer) to be aware and control the money going out of your banking account.
Are all debit orders DebiCheck debit orders?
No. You will have to check with the service or credit provider if they make use of DebiCheck.
Meerkat makes use of DebiCheck to ensure that you have the power and are fully aware of all future debits that will be checked against the mandate to ensure their legitimacy.
Do all banks offer the option of DebiCheck?
DebiCheck was introduced in response to fraudulent debit order activity and a request made from the South African Reserve Bank (SARS) to the Payments Association of South Africa (PASA). Important to note is that PASA includes South African banks, so your bank will offer this service.
DebiCheck process explained at popular South African banks:
Can I cancel a DebiCheck mandate or dispute a debit order?
Usually you will have to approach the creditor with whom you have a credit agreement with to cancel the debit order. A bank cannot authorise this, but they can suspend or put a stop order in place regarding a debit order.
How to cancel Debicheck on Capitec app
You can, in the case of a DebiCheck mandate with Capitec, suspend the debit order, but you would still have to contact the creditor to make arrangements for cancelling the contract or agreement.
How to cancel Debicheck on Standard Bank app
Using the Standard Bank app you can stop a debit order by clicking on the "manage" tab and selecting the "debit orders" option. As is the case with Capitec, you will have to contact your creditor directly to cancel the credit agreement. Stopping or suspending a debit order does not mean the credit agreement has been cancelled.
Can you dispute a DebiCheck collection?
You can dispute a DebiCheck collection, but because it was initially approved, it will be difficult for you to prove otherwise.
What happens if you don't accept DebiCheck?
When you are sent the electronic confirmation, for example via text message to approve the debit order, and you do not approve it, your bank won't authorise the debit order.
How long does a DebiCheck mandate last?
The time period of the mandate is dependent on the credit agreement that you signed. However, the electronic mandate does have an end date because if there are any arrears payments that needs to be collected, it can be done.
When the contract has been completed, the creditor should issue a cancel mandate request. This will end the electronic mandate and should any collections be attempted in the future, they will be rejected. In this case, you are not required to approve the cancellation request. You will just receive an SMS confirming that the electronic mandate has been cancelled.