Combating debit order abuse by defining requirements to implement Authenticated Collections

BSG partnered with a leading South African provider of motor vehicle and business finance to define requirements for implementation of the new Authenticated Collections (AC) payment method.

overview
  • Achieve compliance to the AC regulation introduced by the Payments Association of South Africa (PASA)
  • Ensure all new early debit orders (as from 1 October 2016) are authenticated electronically
  • Prepare for implementation in order to continue collecting in the early window
objectives
  • Analyse impacts of the legislation in terms of the compliance requirements
  • Identify how the client’s business and technical landscape is currently falling short of meeting these needs
  • Facilitate a legal translation of the legislation to ensure clear understanding of the regulation and its implications
  • Articulate the functional requirements to enable customers to approve a mandate authorising debit order collection from their accounts
  • Ensure consistent collection rates from a business operational perspective through seamless integration into the interbank payments infrastructure
benefits
  • Maintenance of the client’s collection rates during the early window for high risk customers
  • Compliance to the South African Reserve Bank (SARB), resulting in penalty avoidance for any debit order found to be without a mandate after a transaction has been disputed by the customer
  • Consumer protection as customers will, in future, know exactly who is debiting their bank account, when they will debit and how much will be debited in the early window
  • Catalyst for business improvement through reduction in unpaid debit orders and dispute transactions being processed
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Preventing unauthorised debit order collection through the delivery of a new payment system, to enable customers to know exactly when debit orders will be processed, safely, from their bank accounts.

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