Debit order rules in South Africa are set to change from April 2026 as part of broader reforms aimed at strengthening consumer protection and reducing fraud in the banking system.
Under the new changes, consumers will have up to 60 days to dispute debit orders, compared to the previous 40 day window for raising concerns about potentially fraudulent transactions.
The reforms are backed by the South African Reserve Bank and the Financial Sector Conduct Authority as part of efforts to tackle the growing problem of unauthorised debit orders.
Crackdown On Fraudulent Debit Orders
Over the past decade, fraudulent debit orders have become increasingly common. Many of these transactions are small recurring charges, often around R99, which makes them less noticeable and easier to slip past consumers.
Because the amount is relatively low, such deductions can go undetected for months or even years. When multiplied across thousands of bank accounts, however, the stolen amounts can become substantial.
The new system will make it easier for customers to challenge these payments.
Banks will introduce self service options at ATMs and online banking platforms, allowing customers to reverse suspicious debit orders without having to contact a call centre.
Businesses Must Adapt To New System
While the changes are expected to benefit consumers, businesses that rely on debit orders may need to adjust their processes.
One system already introduced to address this issue is DebiCheck, which requires consumers to approve debit orders through their bank before companies can collect payments.
The system was rolled out in 2021 and is intended to ensure that customers explicitly authorise debit order transactions.
Companies that depend on debit orders, including credit providers and hire purchase businesses, may face higher dispute rates if they do not comply with the updated verification processes.
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