Big changes for debit orders coming for South Africa – what businesses need to know

The South African payment landscape is set for a big shakeup as businesses prepare for the mandatory shift from the Registered Mandate Service (RMS) to the Registered Mandate (RM) payment stream by March 2025.
This transition, spearheaded by the South African Reserve Bank (SARB), aims to modernise the country’s payment infrastructure, enhance security, and promote fairness within the financial ecosystem.
Steven Maier, Chief Brand Officer at Amplifin said that this shift signifies more than just a compliance update; it represents a fundamental change in how businesses manage debit order collections.
He emphasised that businesses currently relying on RMS, especially those with large collection portfolios, must understand the implications of this change and take proactive steps to adapt.
What is it?
Maier explained that RMS (introduced as a temporary solution) enabled creditors to have their debit orders processed in the morning even when a successful authentication could not be secured from the debtors.
However, RMS debit orders were disputable by consumers, meaning successful collections could be reversed if the payer raised a dispute.
“Therefore, even with the absence of an authenticated mandate creditors still maintained relatively high success rates primarily due to the time the RMS collections were processed – that being in the morning,” he said.
With RM, however, Maier explained that the SARB aims to phase out non-authenticated debit orders from the early morning processing window, moving them to an evening processing slot.
“The new RM stream offers limited credit tracking capabilities from noon to midnight,” said the Brand Officer.
He added that RM does not require a failed authentication attempt for mandate registration and subsequent processing.
“It is therefore imperative that businesses whose success rates are dependent on their debit orders being processed early in the mornings enhance their DebiCheck authentication practices to ensure their collections enjoy the benefits of early processing.”
So what?
Maier explained that the shift from RMS to RM presents both challenges and opportunities for South African businesses.
The move to evening processing under RM is expected to affect collection success rates, especially for businesses that rely heavily on RMS.
Companies with large RMS portfolios are most vulnerable, as they often deal with payers who are difficult to reach or responsive to authentication requests, and who tend to withdraw funds before debit orders are processed.
He said that businesses with substantial RMS collections must act now to assess the impact of this change.
How do I ensure a smooth transition?
With the SARB’s deadline approaching, Maier said that it is crucial for companies to adopt a strategic, multi-step approach to prepare for the shift.
This includes:
- Evaluate RMS Dependency: Assess reliance on RMS for DebiCheck collections. Understand the scope of RMS use to identify necessary adjustments.
- Secure Mandate Authentication: Focus on authenticating as many DebiCheck mandates as possible to maintain higher success rates with morning processing, using TT1 Real-Time, TT1 Delayed, and TT3 methods.
- Test Collection Impact: Run small tests to simulate RM’s evening processing and evaluate success rates, helping to strategise for potential challenges.
- Train Call Centre Teams: Ensure call centre agents are well-trained to guide consumers through the authentication process.
- Review Sales and Service Policies: Adjust policies to delay goods or services delivery until mandate authentication is complete, protecting collection success.
- Monitor and Consult Continuously: Ongoing monitoring and regular consultations with payment providers are crucial to address issues and refine processes.
Is the glass half-full?
While the transition brings challenges, Maier said that “it also offers significant benefits.”
“RM marks a step toward modernising South Africa’s payment infrastructure by introducing ISO standards, which improve security, data integrity, and operational efficiency,” he said.
The new system enables businesses to register mandates for juristic and dual signatory accounts, facilitating efficient B2B collections previously excluded from DebiCheck.
RM’s real-time credit tracking allows for successful collections when sufficient funds are available, enhancing collection opportunities.
Additionally, RM collections are presented randomly before EFT presentments, ensuring fairness and equity for all beneficiaries.
“By embracing RM, businesses can leverage these features to increase collection success rates and streamline processes that were not possible under the conventional EFT debit order system,” said Maier.
“The RM payment stream also gives consumers and businesses greater visibility of the RM mandates that have been registered with their bank, which increases overall transparency,” he added.
Maier emphasised that this change offers an opportunity to modernise payment systems and improve security, allowing companies to navigate disruptions and succeed in a more efficient payments landscape.
“The coming months offer a chance for businesses to refine their collection processes, improve authentication rates, and align with best practices that protect against disputable collections.”
“In doing so, businesses will prepare for a successful transition and contribute to a more secure, fair, transparent and equitable payment system that benefits all participants in South Africa’s evolving financial ecosystem,” added Maier.