Frustrated with customers reversing your debit orders and losing trust in traditional debit order solutions?
The payments industry has recently launched DebiCheck, a new type of debit order collection method where your customers will electronically authorise their debit order before it is processed from their bank account.
Direct Debit is making this system available to businesses looking to have upfront authentication of the debit order mandate ensuring that customers do not reverse transactions.
This solution will ensure that disputes are minimised and that your business has complete control over its debit order collections. With DebiCheck, you’re in control of your cash-flow.
What exactly is DebiCheck?
DebiCheck is a new type of debit order collection which is electronically confirmed by the account holder via their bank. This confirmation is done on a once-off basis at the initiation of a new contract or service signup.
How does DebiCheck work?
Step 1: Signing the mandate
Customers complete and sign the paper debit order mandate, obtain a voice recording or complete and electronically sign an E-Mandate (an electronic debit order agreement).
The DebiCheck E-Mandate allows your customers to sign up for a product or service on your website or app. They complete and sign the mandate via email, SMS or in person on a tablet.
The E-Mandate has built-in functionality needed to successfully register your DebiCheck mandate:
- Validation of banking details (to ensure account number and branch code is correct)
- Identity verification (to verify the person signing the E-Mandate)
- Validation of ID number (to ensure the correct ID number is registered).
Step 2: Registering the mandate
Register your customer’s mandate. Paper and voice mandates are captured manually whilst E-Mandates are automatically submitted for registration as they are signed.
Step 3: Approving and rejecting the mandate
Your customer receives the mandate request via their banking app, online banking or SMS and can then choose to accept or reject the request.
Step 4: Process the debit order
Debit orders are then collected from accounts where customers have approved the mandates. This includes both manual DebiCheck and automated DebiCheck submission for processing.
DebiCheck authentication channels
Your customer can authenticate the DebiCheck debit order via the following authentication channels:
- Banking app
- Online banking
- Cellphone (USSD)
- Via contact centre
- POS devices
- In-branch banking
In order to view the specific step-by-step instructions for each bank, please provide your company name and email address to download the full manual for each bank.
Main benefits of using DebiCheck
1. Eliminating cash-flow management strategies and protecting customers
The DebiCheck debit order system will eliminate abusive cash-flow management strategies from consumers through electronic mandate authentication.
This will in turn ensure a lower amount of debit order disputes as your customer initially authenticates the mandate and will need to contact the business directly should they want to cancel the service.
DebiCheck also protects your customer from fraudulent debit orders and helps build trust with your business.
2. Upfront authentication by the customer with their bank
Your customer will need the authenticate the DebiCheck mandate upfront agreeing to the terms and conditions set out between your business and themselves.
If you process your debit order exactly in line with the date and value you’ve loaded when you created the DebiCheck mandate, your customer will not be able to reverse the payment.
Disputes will only be allowed based on date and amount, for any other dispute reason, the customer will be referred back to you as their service provider.
Sign up to DebiCheck for your business
Contact Direct Debit today to find out more about DebiCheck debit orders for your business.