DebiCheck is a new way to review and accept debit orders for services or products. Our helpful guide will assist you when using this exciting facility.
What is DebiCheck?
When accepting service agreements or, for example, signing for a loan repayment, you may have signed for a debit order mandate in the past. This is an agreement that allows a service provider or third party to debit your bank account for a monthly sum to render a service or issue payment towards a product.
Until now, debit orders have worked under two systems – Authenticated Early Debit Order (AEDO), and Non-Authenticated Early Debit Order (NAEDO). Whereas AEDO requires a customer to ‘mandate’ a debit order using their bank cards and by entering a PIN, NAEDO allows qualifying service provides to deduct payments without the debtor entering a PIN.
DebiCheck is a new process that will ultimately replace NAEDO transactions When using DebiCheck, customers will need electronically authenticate a debit order (or series of debit orders) by accepting a mandate, after which future debits are checked against the mandate to ensure their legitimacy.
What problem does Debicheck try to solve?
DebiCheck offers benefits for both customers and businesses. DebiCheck largely attempts to solve two problems.
For customers, DebiCheck aims to ensure that debit orders are fully reviewed and accepted by customers prior to their accounts being debited (such as in the case of a NAEDO debit order). This ensures that customers are fully aware of their financial commitments when accepting a debit order for a service or product.
For businesses, DebiCheck aims to limit fraud and ensure that customers who have accepted a debit order do not illegitimately attempt to chargeback debited amounts from their account when they have legally accepted a service provider’s (or product’s) terms.
How does Debicheck work?
Email & SMS
If your bank uses email to confirm a debit order mandate, you’ll need to open your email client, click on the relevant area in the email, review the proposed agreement, and then confirm or decline your mandate.
Similarly, if your bank uses SMS, you will receive an SMS with instructions and the option to reply, where you can accept or decline the mandate.
If your bank uses USSD to confirm DebiCheck mandates, you will receive your mandate via a USSD message. Thereafter, you will have the option to decline or accept the mandate by way of a text response.
As each bank maintains its own mobile or web app, functionality may differ – however, each bank will offer a selection to review, decline, or accept debit order mandates. Most commonly, you may receive further instruction from your bank or a push notification once a mandate has been received.
Will Debicheck cost me more to use?
DebiCheck will not require any funds to use and will not require a customer to otherwise ‘subscribe’ or pay for the service. The only instance where a customer may be required to spend their money in order to accept a debit order mandate is when responding by SMS or USSD code, which cost may be determined by their mobile network.
Will Debicheck replace my existing debit orders?
DebiCheck will not replace your existing debit orders – meaning that if you already have an active debit order on your bank account for a service or product, you will not need to take any action.
However, if the nature of the service or product you settle by debit order demands it, you may in future need to approve a mandate if you either renew your service contract or purchase a product again.
How do I use Debicheck when applying for a Wonga loan?
When you successfully apply for a Wonga loan, you’ll need to accept a debit order mandate through DebiCheck before you can receive your funds. Your DebiCheck mandate will reflect the loan repayment terms and instalments you have applied for.
We’ve prepared a comprehensive guide to help you use DebiCheck when completing your application – you can read more here.