South Africa is the first country to implement a debit order system where banks request electronic pre-authorisation, directly from their clients, for a debit order agreement.
It’s called DebiCheck and will come into effect from November 2021 after the original launch date was pushed back due to the Covid-19 crisis. It was instituted in response to a mandate from the South African Reserve Bank, to prevent fraudulent debit orders, while also protecting merchants and credit providers from an increase in disputed debit orders.
DebiCheck will change the payments game by making a customer’s bank the only role player authorised to obtain authorisation from a client. This completely disrupts the status quo. Currently, merchants and credit providers can obtain authorisation themselves, directly from the customer, via paper or voice mandates. With DebiCheck this will no longer be possible.