Don't let fraudulent debit orders get the better of you!
It goes without saying that fraudulent debit orders wreak havoc. Not only do they ruin your budget and drain your account, but the effects can haunt you for years to come.
Let's have a look at the potential dangers caused by illegal debits on your accounts.
It's sometimes difficult to detect fraudulent debit orders
The debit order system processes a large number (55 million payments in 2019!) of debit orders in the country. As you can imagine, finding the fraudsters behind illegal debit orders must be a challenge. This is why it's also such a nightmare to reverse them and why there's so much admin involved.
It affects your credit score…badly
Reversing a debit order generally doesn't impact your credit score. But, if you reverse a debit order for a credit payment and the account doesn't get paid eventually, it will affect your credit score. Also, debit orders that bounce on, for example, your car payment, will reflect as debt to creditors. That will negatively affect your credit score.
It costs a lot of money!
Fees for bounced debit orders are high – some costing almost R100. Not only that, but the total cost of multiple unauthorized debit orders will no doubt take a toll on your bank account. This has consequences for your budget and your ability to meet other financial obligations throughout the month.
So, what can I do?
Ideally, it would be great to have more control over when your account is debited. The above factors led the Payments Association of SA to introduce DebiCheck, a system that allows you to approve the initial debit order mandate before your account is debited. It’s a great way to not only keep track of your debit orders but to sign off each debit order, giving you control of your bank account.
You can find out more about DebiCheck here.