Discovery Life uses DebiCheck to make debit orders safer
Most South Africans agree that debit orders are a convenient way to pay their accounts. However, debit order abuse has become a major issue in South Africa over the past years.
This is why the South African Reserve Bank asked the Payments Association of South Africa (PASA), which includes the South African banks, to find a solution.
As part of the solution, the banks started using DebiCheck as a collection method. Discovery Life also now uses this method to collect premiums.
What is DebiCheck
DebiCheck is a new way in which you can control how certain debit orders are collected from your bank. You are able to confirm DebiCheck debit orders electronically with your bank. For example, when Discovery Life wants to collect your agreed premiums for your policy, you must authorise the Discovery Life debit order with your bank.
DebiCheck makes sure that:
- You are in control of, and aware of, debit orders being processed on your account
- The company or service provider knows that you have acknowledged, and aware of, these debit orders
- You can check the debit order information before the bank captures and processes it.
DebiCheck puts the control back into your hands, giving you the comfort of knowing that DebiCheck debit orders must be processed within the conditions that you have agreed to.
How the general process for a DebiCheck debit order works
- When you request to pay by debit order, your bank will send you a DebiCheck debit order request.
- You must confirm the debit order request once, at the start of the contract to let your bank know that you give permission for the money to be taken from your account.
- Your bank will now know what you have agreed to with the service provider or company.
- Your bank will not allow a DebiCheck debit order to be processed outside the terms that you have agreed to.
How the process for a DebiCheck debit order with Discovery Life works
- When you take out a new policy, you will sign the usual debit-order mandate with us.
- We send the debit-order mandate to your bank.
- We send you an SMS reminding you to respond to your bank's DebiCheck request.
- Your bank will send you an SMS and ask you to confirm the debit order using either your banking app, online banking or by visiting an ATM or branch.
- You must only accept a DebiCheck request if you agree with the amount and details of the request.
- Your bank will then process the DebiCheck debit order on your bank account.