Debit Order Dispute Reform: What the New 60-Day Rule Means for Credit Providers

South Africa’s debit order ecosystem is set to undergo an important change that will impact how disputes are managed across all debit order collection streams.

As part of the Debit Order Dispute Enhancements Project, the Payments Association of South Africa (PASA) has confirmed that, effective 13 April 2026, the dispute period for debit orders will be standardised across all debit order payment streams. The change has been approved by both the South African Reserve Bank (SARB) and the Financial Sector Conduct Authority (FSCA).

From this date, the dispute window for DebiCheck, Registered Mandate (RM), and EFT Debit Orders will be reduced from 365 days to 60 calendar days for all debit orders processed after 13 April 2026. The 60-day period will be calculated from the day after the successful payment collection, up to and including the 60th calendar day.

In addition, the post 40-day dispute rule for EFT debit orders will be removed, further simplifying the dispute framework across payment streams.

While the change may appear procedural, it carries important implications for credit providers and collection environments.

By introducing a single, standardised 60-day dispute window across all debit order payment streams, the industry is moving toward a more consistent and predictable dispute framework.

A More Predictable Risk Environment for Credit Providers

One of the most significant impacts of the reform is the reduction of long-tail dispute risk.

Under the previous framework, disputes could in some cases be raised up to 365 days after a debit order had been successfully collected, creating uncertainty for credit providers long after payments had already been reconciled and potentially new credit granted to borrowers.

Reducing the dispute window to 60 days introduces greater predictability for credit providers relying on debit order collections. It limits the exposure to late reversals and helps credit providers manage their collection outcomes and financial forecasting more effectively.

Balancing Consumer Protection and Collection Certainty

Debit order disputes have always served an important purpose within South Africa’s payments ecosystem, ensuring that consumers retain control over debits processed against their bank accounts.

However, the extended dispute period previously introduced unintended challenges for credit providers. In some cases, dispute mechanisms have been used by consumers as a cash flowmanagement tool. Reducing the dispute window helps ensure that legitimate disputes are still accommodated, while limiting long-tail reversals that can impact collection certainty.

Importance of Mandate Authentication

While the dispute framework is evolving, the underlying rules that determine whether a DebiCheck debit order is disputable remain unchanged.

This means that authenticated debit order mandates, in this instance DebiCheck, continue to offer strong protection against successful disputes when implemented correctly.

The Debit Order Dispute Enhancements Project represents another step in the continued evolution of South Africa’s National Payment System, with the goal of creating a more balanced and trusted debit order environment.