Business
South Africans to get 60 days to dispute debit orders from April 2026
Debit orders have long been one of the easiest ways for South Africans to pay for services. From gym memberships to insurance premiums, the system allows companies to collect money automatically each month.
But starting in April 2026, the rules around these payments are changing in a way that could give consumers significantly more protection.
Regulators have confirmed that certain debit orders will soon be disputable for up to 60 days after the transaction takes place. For everyday banking customers, that means more time to challenge payments that appear incorrect or unauthorised.
A response to years of fraud concerns
The update has been confirmed by the South African Reserve Bank and the Financial Sector Conduct Authority. According to financial industry experts, the change forms part of a longer effort to clean up problems that have affected the debit order system for years.
Many South Africans will remember the wave of suspicious debit orders that began appearing around 2015. These transactions were often small amounts, commonly R99, quietly deducted from bank accounts. The figure was frequently chosen because it fell below the level where banks typically alerted customers to unusual activity.
The result was a surge of complaints and disputes as consumers realised money had been leaving their accounts without clear authorisation.
Banks responded by making it far easier for customers to challenge debit orders. Self-service dispute tools were gradually rolled out through ATMs, online banking platforms, and mobile banking apps. Instead of calling a bank branch or contact centre, people could reverse a payment themselves in a matter of minutes.
Interestingly, while these tools improved convenience, they did not necessarily reduce disputes. In many cases, they simply made customers more aware of their rights and gave them the ability to act quickly when something looked wrong.
The role of DebiCheck
Another major reform arrived with the introduction of DebiCheck. This system was developed after a directive from the South African Reserve Bank and officially launched in May 2021.
DebiCheck changed how debit order mandates work. Instead of a business simply submitting a payment request, customers must first approve the agreement directly through their bank.
In practice, this means a company sends the details of its payment agreement through the consumer’s bank. The customer then confirms the mandate using their banking app, online banking platform, or another approved channel.
Once that mandate is authorised, the bank stores a record of it. As long as the company collects payments according to those agreed terms, the transactions cannot be disputed even within the new 60-day window.
This system has become particularly common among businesses that deal with higher-risk payments, such as lenders or companies selling goods on instalment.
What the new rule could mean for businesses
While the rule strengthens consumer protection, it may also create challenges for some companies.
Businesses that still rely on traditional debit order systems could see an increase in disputes once the longer dispute window takes effect. Experts say the impact is likely to be felt most strongly by two types of companies.
The first group includes businesses serving higher-risk customers but not yet using more secure systems like DebiCheck. These companies may need to adopt stronger collection tools or adjust their pricing to cover potential payment losses.
The second group includes companies that provide ongoing services or goods, where the service can be stopped if payment fails. These businesses will need to weigh the cost of using advanced collection tools against the financial risk of disputed payments.
In some cases, the calculation may be simple. Losing two months of payments or the cost of acquiring a new customer could make investing in more secure payment systems worthwhile.
New payment tools are also emerging
The payment landscape in South Africa continues to evolve alongside these regulatory changes.
One example is PayShap Request to Pay, introduced in December 2024. The system allows businesses to send customers a payment request that can be approved instantly through their banking app or preferred banking channel.
Tools like these are designed to give customers clearer control over payments while helping businesses collect funds more reliably.
Why the banking industry sees this as progress
Although the longer dispute period could cause short-term pressure for some businesses, financial experts believe the shift reflects years of work to modernise South Africa’s payment systems.
Banks and regulators have spent considerable time building the infrastructure needed to make these systems more secure and transparent.
For everyday South Africans, the upcoming rule means a simple but important change. If something looks wrong on a bank statement, customers will have more time to investigate and challenge the payment.
In a country where debit orders remain a cornerstone of everyday financial life, that extra protection could make a meaningful difference.
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Source: Business Tech
Featured Image: Direct Debit
