DebiCheck can improve debit order collections says FNB

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Recently, your bank may have prompted you to accept something known as a DebiCheck when taking up a new debit order.

This solution allows you to approve or decline a debit order from being loaded onto your account. The idea here is that you are less likely to have an unknown debit order collected from your account.

On the other side of things, a DebiCheck means that collection rates for businesses will likely improve, disputes will be reduced and, of course, business owners won’t have to chase payments every month.

We should be clear that DebiCheck doesn’t replace older debit orders and new debit orders will only carry the secure payment solution if vendors incorporate it into their processes.

“Businesses can choose to use DebiCheck if they want to collect in the early window for a specific client, or they can choose to use EFT collections and collect in a later window. Using the DebiCheck service means businesses can be assured of more regular payments by clients and improve cash flow management, reducing bad debt,” explains head of the commercial transaction division at FNB, Lauren Deva.

A rather cool feature of DebiCheck is that if you have a DebiCheck order in place, that order will track your account and the funds that are owed can be reserved for the entity collecting the debit order.

Now for businesses there is a cost involved and this cost can be driven up by initiations, amendments, cancellations, and post payment interactions. 

However, DebiCheck also comes with a slice of peace of mind. That’s because unless the debit collection is outside of the agreed mandate, the order can’t be disputed unlike an EFT collection which can be easily disputed.

With that having been said, DebiCheck may still have some kinks to iron out and if you encounter a problem it’s a good idea to get in touch with either your bank or the company that is debiting you to find out what the problem is.

“FNB, together with the industry, is continuously enhancing DebiCheck to ensure that the service meets customers’ needs. That includes our business customers, many of whom will welcome systems to improve their collection services. During this transition period, we encourage any customer who experiences difficulties to contact us via our banking channels for assistance,” concludes Deva.

Brendyn Lotz

Brendyn Lotz

Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.

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