My Debt Hero

What is a DebiCheck mandate and how does it work?

Share this post with everyone you care about

A couple sitting in their Livingroom looking at paperwork and debit orders

Debit orders are such an amazing way to pay for goods or services.

The money just goes off automatically. It’s zero effort

But are debit orders secure?

Sometimes, fraudulent companies process debit orders without the customer’s consent. They deduct unauthorised amounts via traditional debit orders.

That’s a problem, right? Yes, it’s a big one. And that’s why DebiCheck exists today.

Here’s what you need to know.

 

DebiCheck

DeniCheck is a smart system introduced by the South African Reserve Bank (SARB), the Payments Association of South Africa (PASA), and the banking industry in August 2018.

The idea is to enhance debit order collections’ security and efficiency and protect customers from fraudulent transactions.

DebiCheck seems complicated, but it’s pretty simple.

Let’s start with the basics.

 

What is a DebiCheck?

DebiCheck is a secure debit order system that gives South African consumers more control over their debit orders. DebiCheck allows consumers to confirm debit orders before banks can process the transactions electronically.

The goal is to prevent unauthorised transactions and fraud.

DebiCheck meaning

The term “DebiCheck” is a portmanteau (a word that is created by blending two or more different words) of “debit” and “check”. It represents a system designed to “check” or confirm debit orders.

 

What is DebiCheck definition

 

Now, if you’re working with a service provider using the DebiCheck system, you may have encountered a DebiCheck mandate.

Let’s explain what the mandate is.

What is a DebiCheck mandate?

A DebiCheck mandate is an agreement a customer provides to their bank to authorise debit orders from a specific company (the ‘user’, ‘creditor’, or ‘service provider’).

DebiCheck mandates list details about the debit order, such as the transaction amount, frequency, and contract length. Consumers can confirm mandates electronically through the DebiCheck system.

Make sense? Perfect. 

Let’s go over how the DebiCheck system works.

 

Struggling to keep up with your debt?

Our team can help make your debt affordable once again.

We help thousands of South Africans to reduce their monthly debt repayments, protect them from legal action, and keep their assets — our team can help you too.

 

 

How does DebiCheck work?

DebiCheck gives users more control and improves security by adding an additional layer of approval for debit orders.

Here is a step-by-step breakdown of how the DebiCheck system works:

DebiCheck process

Here is a summary of the DebiCheck process:

  1. Agreement on terms
  2. DebiCheck mandate creation
  3. DebiCheck mandate confirmation
  4. Mandate acceptance
  5. Processing of debit order
  6. DebiCheck monitoring

 

Let’s go over each step in more detail.

 

Agreement on terms

This is when the customer (you) enters into an agreement with a company (the creditor) for goods or a service that must be paid via debit order.

DebiCheck mandate creation

The company (the creditor) creates a DebiCheck mandate (the digital contract) based on the terms of the agreement.

DebiCheck mandate confirmation

The customer’s bank receives the mandate, and the bank presents the mandate to the customer.

Mandate acceptance

The customer accepts or rejects the DebiCheck mandate (through an electronic banking channel like the app, online banking, or an ATM).

Processing of debit order

The company (the creditor) starts processing the debit orders according to the agreement.

DebiCheck monitoring

The DebiCheck system monitors transactions to protect the customer and ensure that each transaction matches the processed mandate.

So, why the extra effort? Why not use a standard debit order?

Let’s find out.

 

What is the difference between DebiCheck debit orders and other debit orders?

The difference between traditional debit orders (or non-DebiCheck debit orders) and DebiCheck debit orders is the level of control that the customer has.

Sure, both automatically deduct money from a customer’s account each month, but with a different level of security.

 

A graphic that compares the differences between DebiCheck debit orders and regular debit orders

 

Both DebiCheck and traditional debit orders are mechanisms for automatic payments, but DebiChecks are more secure.

Because DebiChecks empower consumers, debt counsellors often rely on DebiCheck debit orders to process debt repayments during debt review.

📚 Bonus reading: Can I pay my creditors directly while under debt review?

Let’s continue. Next, we’ll go over DebiCheck tracking.

 

DebiCheck tracking

Debicheck tracking refers to the monitoring and verification process. See step six in the DebiCheck process.

DebiCheck tracking does a few things:

  • Mandate confirmation
  • Order processing
  • Tracking and verification
  • Confirmation or rejection

 

Mandate confirmation

When a customer approves a DebiCheck mandate, this mandate is stored in a central database, and the details are confirmed with the customer’s bank.

Order processing

When the company submits the debit order for processing, the bank retrieves the customer-approved mandate from the central database.

Tracking and verification

The bank then ‘tracks’ or verifies the details of the debit order against the details of the approved mandate. This includes checking elements such as the amount, date, and frequency of the debit.

Confirmation or rejection

If the details match, the debit order is confirmed and processed. If there’s a discrepancy, the debit order is rejected.

Not all DebiChecks are welcome. Occasionally, you might want to cancel a DebiCheck.

DebiChecks must be cancelled by following the correct procedure.

Here’s how to do it.

 

How to cancel a DebiCheck

To avoid potential issues, it is best to follow the necessary steps to ensure that the DebiCheck is cancelled properly.

How to cancel a DebiCheck:

  1. Contact the company (the creditor or service provider)
  2. Contact your bank
  3. Monitor your account

 

A graphic that lists the steps in the process of cancelling a DebiCheck

 

Here’s what the process looks like in practice.

Contact the company (the creditor or service provider)

Reach out to the company you have the agreement with and inform them that you wish to cancel the debit order.

If there’s an outstanding balance, then you will need to arrange an alternative payment method.

Contact your bank

Once you and the company are in agreement, you can continue and let your bank know that you’re cancelling the DebiCheck. Banks have their own processes in place, so follow the instructions from your bank to cancel the DebiCheck debit order.

Monitor your account

Finally, keep an eye on your account to ensure the debit order is cancelled. If something goes wrong, contact your bank to find out how to resolve the issue.

If all goes well, then you should have no issues at all.

 

Final thoughts

Now you understand DebiCheck, DebiCheck mandates, and know how the process works, plus how to cancel a DebiCheck.

In essence, it is an agreement that adds some extra security. DebiChecks exist to serve customers (you).

Happy transacting from My Debt Hero.

Table of Contents

a 3D shield that is blue with a tick on it, protecting a brown wallet with cash and coins
a 3D shield that is blue with a tick on it, protecting a brown wallet with cash and coins

Struggling to keep up with your debt?

Our team can help make your debt affordable once again.

Application Form (8 Part - No qualifying - Same Page)

Terrific! You're qualified to apply.

Provide your details so that we can contact you with the solution.

Our team promises to protect your privacy and will never share your information.

Enter your details to get your results

Want to find out how you could reduce your debt? Enter your details below — if you qualify, we'll reach out to tell you everything.

*Calls are limited, so book now to secure yours.

Tap to talk to us on WhatsApp