What is DebiCheck? How to improve recurring collections

DebiCheck is a uniquely South African debit collection system introduced to protect consumers and service providers from debit fraud. It’s the first of its kind, requiring consumers to authenticate mandates digitally through their bank, where it can also be tracked and accessed by the bank.

DebiCheck is set to replace traditional EFT debit orders as it tackles challenges with unauthorised or unexpected disputes by requiring an electronically signed mandate and ensuring collections only occur as agreed in the mandate - which also protects the consumer. In 2022, DebiCheck grew by 101.23%, compared to EFT debit orders’ 11.06%, and in 2023 it grew by 10.43%, while EFT debit orders only saw a 0.23% increase.

As customers recognise the benefits of DebiCheck, they may request it more frequently as a payment option. Here we explore how subscription-based and recurring payments solutions can leverage DebiCheck to streamline payment collections.

Subscription services

Subscription-based services such as entertainment streaming, gym memberships, data or cellular plans and more can use DebiCheck to securely collect monthly fees.

In cases where your customers do not want an automated renewal of services, you can give your customers more control to choose the period they prefer and use those terms in the DebiCheck mandate. The customer will get a copy of the DebiCheck mandate and authorise the collection. Once the period ends, the bank stops processing payments, reducing disputes and manual mandate tracking on your end.

Using DebiCheck in this way allows you to improve predictable revenue and offer more payment options for customers who want to use your services for a set period.

Regular recurring payments 

Businesses that require regular recurring payments might include insurance businesses, lenders and financing solutions, regularly recurring savings or investment deposits and others. These businesses often require customers to make consistent payments at regular, pre-set intervals – whether monthly, annually or otherwise.

Seen as a ‘set it and forget it’ solution, DebiCheck can enable customers to easily create recurring payment plans that are debited directly from their bank accounts. This ensures that customers electronically sign a mandate with an agreed payment schedule, and reduces failed or missed payments by automatically debiting the customer’s account.

How Stitch ensures successful transactions with fallback solutions 

Recurring payments solutions should simplify revenue collection, with minimal failed or missed payments. In addition to a reliable and streamlined DebiCheck mandate solution, Stitch ensures successful transactions by offering fallback options via alternative online payment methods, like tokenised card or Pay by bank, if a regularly scheduled payment fails. Customers can also choose to make once-off payments to pay down debt or pay via another method if they so choose.