Impact and Benefits of the Debit Payment Stream

 Benefits to the National Payments System (NPS)

  • Debit orders are processed entirely electronically from the original source (payment initiation) to the end customer
  • More detailed information will be provided to the end consumer to identify and interpret all debit orders on their accounts
  • Less fraudulent or rogue debit orders across the industry due to stricter and more robust rules and controls in support of regulation
  • Fewer manual steps in the overall process of clearing debit orders between banks and customers

Benefits to the Debtor/Payer

  • Increased convenience and greater ability to understand all debit orders to the account holder
  • Unsuccessful debit orders will not be “unpaid” in the traditional EFT process which provides more opportunities to fund debits over a period of time, however the repercussions of unsuccessful debits still apply
  • Identification of the debit order originator by abbreviated short name that will appear on the account holders bank statement
  • Fully electronic and simpler process for disputing invalid debits processed to account holders

Benefits to the Creditor/User

  • Early morning processing which allows for greater efficiencies in daily collection periods
  • No preferential treatment of transactions due to randomisation
  • Repeatable tracking process available to improve collection of funds over a period of time as opposed to a single attempt
  • Current business day processing where funds are cleared and settlement within 24hrs
  • “Unpaids” replaced by a successful/unsuccessful process that will result in more efficient collections and reduce the number of disputes
  • Overall business processes are better streamlined which is less time-consuming for the collector

Impact and Benefits of the Credit Payment Streams

Benefits to the Debtor/Payer

  • Payments can be made in real-time from any customer to any other customer, regardless of bank
  • Notification and confirmation of the beneficiary receiving payment will be provided to the paying consumer
  • Audit trail and notifications will be available for EFT transactions to allow consumers to track their payments

Benefits to the Creditor/Beneficiary/User

  • More detailed information will be provided to the end consumer to identify and interpret all payments made to their accounts
  • Fraudulent transactions will reduce across all EFT payments streams in the banking industry due to more robust rules
  • Payments are cleared onto beneficiary accounts as received in the business day and are therefore not subject to overnight or multiple day clearances
  • Payments made in the working day between 08h00 and 16h00 will clear on beneficiary accounts on that day. Any transactions after 16h00 will be processed the next morning