Payments Association trying to resolve high number of debit order scams

As of the 1 August last year, major South African banks have implemented a programme called debi-check, a facility that requires customer authorisation before a debit goes through.

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JOHANNESBURG - The Payments Association of South Africa (Pasa) says it is working on a number of solutions to try to resolve the high number of debit order scams in the country.

The scam involves rogue companies debiting the sum from bank accounts and because most banks only notify clients when an amount of R100 or more is taken from the account, most of these companies fall under the radar.

As of the 1 August last year, major South African banks have implemented a programme called debi-check, a facility that requires customer authorisation before a debit goes through.

Pasa CEO Water Volker says implementing these systems will take time.

“The process now is to bring all the users on board. The users are those companies that want to deduct in terms of early debit orders. They have to now implement debi-checks themselves, which is quite a bit process and we think it will take another year for some users.”

LISTEN: Pasa: We're dealing with R99 debit order scam