First launched in 2017, the Debicheck authenticated collections process has been designed to combat debit order abuse – from companies that are processing invalid debit orders to consumers avoiding paying them by unfairly disputing these with their banks. Yet, it has been cumbersome and expensive to implement from an insurer perspective. This has resulted in a slow uptake and market cynicism that this is an effective system.
From a practical perspective, debit order mandates are electronically confirmed by end users with their banks on a once-off basis to ensure no amounts are deducted from their accounts without their approval.
“The lack of widespread adoption shows that the resources and systems required to effectively implement Debicheck are not seen as worthwhile. However, SilverBridge has made significant enhancements to Exergy that help make this a smoother process. Our clients can rest assured that the administrative aspects of Debicheck are taken care of, leaving them to focus on business processes such as training staff,” says Annalie Terblanché, product manager at SilverBridge.
Exergy automates the Debicheck mandate process for insurers who have already implemented it.
“Some of the work we have done for a Johannesburg-based client reflects our commitment to assisting companies on the difficult journey when it comes to Debicheck. Exergy will always remain relevant as we ensure it adapts to ongoing changes in compliance demands. Even though Debicheck only signifies a small proportion of deductions, having this support is essential for long-term growth,” concludes Terblanché.