AEDO And NAEDO To Become A Thing Of The Past

PICTU

Onthatile Sepeng

Early debit orders will soon be a thing of the past as DebiCheck is being introduced. Authenticated Early Debit Orders and Non-Authenticated Early Debit Orders (always referenced as AEDO or NAEDO on your statement) will be replaced by all 11 banks in South Africa.

The DebiCheck is a new type of debit order that requires you to confirm a debit order with your bank when you go into a contract with a service or credit provider.

Using DebiCheck will help reduce the risk of an incorrect or a fraudulent debit order being collected because the debit order can only be done according your approval.

It will be rolled out in line with the South Africa’s Central Bank deadline which is February 2019. This is expected to curb the abuse by allowing all involved to authenticate debit orders.

Many took their concerns to social media over the festive season, complaining about the unauthorised debit orders on their accounts. Saying banks had a hand in this as there was a charge every time and unauthorised debit order was reversed. Also accusing banks of giving third parties their banking details in order to obtain a profit.

The DebiCheck system will prevent unauthorised debit orders from going through without account holder’s consent, unlike having to cancel an unauthorised debit order once it has gone through.