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 of the clients needs
  • 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
  • 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
  • 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
authenticated collections combatting debit order abuse compliance

Preventing unautho- rised 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.


bsg compliance solution

We can help you balance risk and regulations with people, process and technology to make compliance a frictionless element of your customer programme, and beyond. We have experience in POPIA, AML, KYC, IFRS, BCBS and IAM.

Do you need support to ensure compliance with incoming regulation?

Our business consultants are able to prioritize and batch compliance projects to misimise disruption to business as usual, ensuring reduced impact on customer experience.

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