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Types of debit orders

Understanding the different types of debit orders and how they work makes it easier to stay in control of your money.

Types of debit orders

A debit order is an agreement between you and a third party. This agreement can be written, electronic or recorded voice approval and gives the third party permission to deduct money from your account.

We process 4 types of debit orders:

  1. DebiCheck debit order
  2. Authenticated debit order
  3. Registered debit order
  4. EFT debit order

Debit order types

A DebiCheck debit order is a debit order that you have agreed to, there is a valid contract in place, and you have signed or agreed to a mandate authorising the service provider to deduct money from your account. You approve this debit order once. However, if a DebiCheck mandate changes, you will need to reapprove it.

If there is a valid DebiCheck debit order and mandate:

  • You can’t dispute the debit order if the money deducted from your account matches the mandate
  • You can stop (suspend) a DebiCheck mandate; this will prevent future collections
  • You can cancel a mandate by visiting your nearest branch before the first debit
  • A service provider can choose to resubmit a debit order as a registered debit order or EFT debit order if you ignore or miss the DebiCheck authorisation request

Learn more about DebiCheck debit orders or how to approve DebiCheck debit orders on your Capitec account.

An authenticated debit order is a debit order that you have agreed to, there is a valid contract in place, and you have signed or agreed to a mandate authorising the service provider to deduct money from your account. You have previously authorised the mandate using your card and PIN.

If there is a valid authenticated debit order and mandate:

  • You can’t dispute the debit order if the money deducted from your account matches the mandate
  • You can stop (suspend) an authenticated mandate; this will prevent future collections

A registered debit order is a debit order that you have agreed to, there is a valid contract in place, and you have signed or agreed to a mandate but have not digitally authorised the mandate request. You may have missed the DebiCheck mandate request, or it expired before you approved it, and the service provider has resubmitted it as a registered debit order.

If there is a valid registered debit order and mandate:

  • You can cancel a registered debit order by visiting your nearest branch before the first debit
  • You can dispute a registered debit order if it does not match the term and conditions that you agreed to. However, you should also contact the provider to stop the contract to avoid being debited in the future
  • You can stop (suspend) a registered debit order; this will prevent future collections

An EFT debit order is a debit order that you have agreed to, there is a valid contract in place, and you have signed or agreed to a mandate, but you have not digitally authorised it. Your written, electronic or recorded voice approval of the debit order mandate authorises the service provider to deduct money from your account on a specific date, or repeatedly, on a fixed date every month, for a fixed or variable amount.

  • You can stop or dispute an EFT debit order that was resubmitted by a service provider using a different contract reference code to the original debit order mandate you agreed to; however, you should also contact the provider to stop the contract to avoid being debited in the future
  • You can stop future EFT debit orders (i.e. stop money being deducted from your account by a service provider in future)

Learn about EFT debit orders and types of debit order options.

 

Cancelling a debit order

If a debit order is no longer valid, you may request that the bank suspend the debit order. The collection will not be processed to your account in future, but you should still contact your service provider to confirm that you are cancelling the debit order. Please note that suspending the debit order does not cancel the contract that you have. This is something you must do directly with the service provider.

 

Disputing a debit order

You can use our app to dispute an unauthorised debit order without visiting a branch. It’s important to note that dispute of a valid debit order could cause the following:

  • A cancelled insurance policy or service, or unpaid instalment
  • A lower credit score and difficulty getting new credit
  • Being handed over for bad debt and more cost
  • Higher future insurance premiums or arrears interest
  • Difficulty entering into other agreements