Big changes are coming to debit orders in South Africa, giving consumers more time to dispute transactions.
From 13 April 2026, debit orders will be disputable for up to 60 days, where the relevant service rules allow it.
The change has been confirmed by the South African Reserve Bank (SARB) and the Financial Sector Conduct Authority (FSCA).
According to Pieter Brand, Head of Product at financial services firm Hyphen, the shift is part of a longer process to improve how debit orders work in the country.
Brand said the current system has evolved significantly over the past decade, particularly after a surge in fraudulent debit orders around 2015.
“The industry suddenly found itself dealing with a wave of rogue debit orders—most of them pegged at R99,” he said.
The amount was often chosen because it sat just below the threshold at which many banks alerted customers to transactions. Banks responded by making it easier for people to dispute debit orders.
This resulted in new self-service options being added to ATMs, online banking platforms and mobile banking apps, allowing customers to reverse payments without contacting a call centre.
While the new tools made disputes easier, the number of disputes did not necessarily decrease.
Instead, improved consumer awareness and digital banking channels made it simpler for customers to challenge transactions.
To address the problem, the industry introduced DebiCheck. The system was developed in response to a 2017 directive from the SARB and officially launched in May 2021.
DebiCheck requires consumers to approve a debit order mandate directly through their bank before the business can collect payments.
“A business sends an electronic copy of its collection agreement through the consumer’s bank, and the consumer approves it in their preferred banking channel,” Brand said.
Once the mandate is confirmed, the bank keeps a record of the agreement. As long as the business collects payments according to the agreed terms, those transactions cannot be disputed—even within the new 60-day window.
Businesses that rely on debit orders will have to adapt
Businesses that face higher payment risks, such as credit providers or companies selling goods on hire purchase, have already widely adopted DebiCheck.
“When you’re providing a loan or goods that are repaid over time, the added cost of ensuring your collections are non-disputable is easily justified,” Brand said.
However, the new 60-day dispute window could put pressure on companies that still rely on traditional debit-order systems.
Brand expects disputes to increase mainly among two types of businesses.
The first group includes companies with higher-risk customers that have not yet adopted tools like DebiCheck.
Brand stressed that these businesses may need to start using more secure collection systems or factor higher dispute losses into their pricing.
The second group includes businesses that collect payments for ongoing services or goods and can simply stop providing those services if payments stop.
These companies will need to decide whether the cost of premium collection tools like DebiCheck is worth the potential losses from disputed payments.
“In some cases, losing two months of premiums or a high acquisition cost of getting a new customer could make that investment worthwhile,” Brand said.
Brand also said businesses should review their customer agreements to ensure their payment mandates accurately reflect how payments are collected.
This can help reduce confusion and lower the risk of disputes. At the same time, new payment tools are emerging that could help businesses recover quickly in the event of disputes.
One example is PayShap Request to Pay, launched in December 2024. The system allows businesses to send customers a payment request that can be approved directly in their banking app or through their preferred banking channel.
He added that the banking industry has spent years developing the systems and infrastructure needed for these changes.
“Yes, the extended automated window will create short-term pressure for businesses that haven’t modernised their collection approach. But pressure, in this industry, tends to produce innovation,” he said.
