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.
FNB is the WORST… from being at the forefront to being the HQ of R99 fraudulent debit orders, high monthly fees, terrible merchant services support, malfunctioning apps & disappearing benefits. They are the WORST bank
— Thula Sindi (@thulasindi) January 4, 2018
FNB has more than 7.5 million clients. Let us just assume that these unauthorised debit orders happen to at least 5 million. Let us further assume that they average R100 in value. That could be R500 million today alone. Whoever is doing this means serious business.
— Bhuti Mdu Mjiwo (@mdungaleka) December 24, 2017
I hear & feel you. Throw in unauthorised/ fraudulent R99.99 debit orders they keep processing every other month out of one's account of which as client I'm also liable for my money being stolen with no recourse!
It's violation of no proportions. Shame on them!
— Gladness Moorosi (@MakhotsoG) January 5, 2018
Reason why these banks aren't doing anything about these unauthorised debit orders is because they are benefiting from the charge of reversing them.
— AFRIKAN QUEEN 👑 (@Afrikan__queen) January 9, 2018
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.