# Risk management (/docs/direct-debit/risk-management)

## PASA Rules [#pasa-rules]

The Payments Association of South Africa (PASA) enforces strict rules for debit order processing. Compliance is mandatory to avoid penalties and processing disruptions.

### Valid Mandates [#valid-mandates]

Every debit order requires a valid mandate that complies with PASA and bank minimum requirements.

<Callout type="warning">
**Penalties:** R1,000 per non-compliant mandate during PASA spot audits.
</Callout>

### Mandate Retention [#mandate-retention]

<Callout type="important">
Retain all mandates for **7 years** after the last transaction. PASA can audit any merchant account at random.
</Callout>

### Abbreviated Name [#abbreviated-name]

Your abbreviated name:

- Must be PASA-registered
- Appears on customer bank statements
- Should accurately reflect your trading name
- Maximum 10 characters

## Minimum Mandate Requirements [#minimum-mandate-requirements]

### Paper Mandates [#paper-mandates]

Requirement

Account number

Type of account

Branch number

Frequency of debit

Abbreviated name on statement

Contract reference

Commencement/action date

Start and termination date

Beneficiary name

Beneficiary contact details

Amount (escalation, variable, max limits)

Signature of account holder

### Voice Mandates [#voice-mandates]

Requirement

Abbreviated name on statement

Beneficiary name

Call centre name

Contact telephone number

Contract reference number

Current date

Commencement/action date

Payer's bank details

Surname and initials of account holder

Value of debit amount

**Additional voice mandate requirements:**

- Written confirmation within 21 days before first debit
- Inform customer of recording
- Inform customer of contract reference and abbreviated name
- Use reliable, preferably SABS-approved recording devices
- Index recordings for easy retrieval

### Electronic Mandates [#electronic-mandates]

Requirement

Account number

Type of account

Branch number

Frequency of debit

Abbreviated name on statement

Contract reference

Commencement/action date

Start and termination date

Beneficiary name

Beneficiary contact details

Amount (escalation, variable, max limits)

Electronic signature of account holder

IP address and location coordinates

## Managing Unpaid Collections [#managing-unpaid-collections]

PASA rules for handling failed collections:

| Scenario | Rule |
|---|---|
| Returned "Unpaid" | Cannot resubmit until next mandated date |
| 2 consecutive "Not provided for" | Cannot resubmit without new mandate |
| "Account Closed" or "Payment Stopped" | Cannot resubmit at all |
| System/technical error | May resubmit after corrections |

<Callout type="info">
**Unpaid timeframe:** Other banks return unpaid instructions within **4 business days** of action date (EFT only).
</Callout>

## Managing Disputes [#managing-disputes]

Customers can dispute both EFT and DebiCheck collections:

| Timeframe | Process |
|---|---|
| Within 40 days | Bank returns transaction immediately |
| After 40 days | Bank notifies merchant, 30 days to provide mandate |
| No mandate provided | Bank debits merchant, refunds customer |

### Dispute Reasons [#dispute-reasons]

- The transaction lacks proper mandate authorisation
- Transaction violates mandate terms
- The mandate was cancelled

<Callout type="info">
Note: For voice-recorded mandates, bank immediately debits merchant upon dispute notification.
</Callout>

## Cut-off Times Summary [#cut-off-times-summary]

| Service | Weekday | Weekend |
|---|---|---|
| EFT Same-day | 08:00-16:20 | 08:00-09:45 |
| EFT One-day | 08:00-16:00 | 08:00-10:15 |
| EFT Two-day | 08:00-14:30 (2 days prior) | 08:00-09:00 |
| DebiCheck/RMS | 08:00-16:00 (2 days prior) | 08:00-11:00 (2 days prior) |
| DebiCheck TT1/TT2 | 03:00-18:30 | 03:00-18:30 |
| AVS-R | 24 hours | 24 hours |

## Bank Codes [#bank-codes]

### Bank Names (API Format) [#bank-names-api-format]

| Bank | API Value |
|---|---|
| ABSA Bank | `ABSA` |
| Standard Bank | `STANDARDBANK` |
| First National Bank | `FNB` |
| Nedbank | `NEDBANK` |
| Capitec Bank | `CAPITEC` |
| Investec Bank | `INVESTEC` |
| Bidvest Bank | `BIDVEST` |

### Common Branch Codes [#common-branch-codes]

| Bank | Branch Code |
|---|---|
| ABSA | `632005`, `632500` |
| Standard Bank | `051001` |
| FNB | `250655` |
| Nedbank | `198765` |
| Capitec | `470010` |
| Investec | `580105` |