Minimum mandate requirements

Mandatory mandate components for paper, voice, and electronic mandates when signing up new customers for debit orders or similar payment collection services, ensure compliance with regulations and help maintain proper records for the mandate process.

The following elements of a payment mandate have now been defined as mandatory for the determination of a valid mandate as part of the compliance management process and determination of penalties:

  • Abbreviated short name of the collecting party

  • Name of the user

  • Deduction amount

  • Deduction date

  • Surname, initial and bank account number of the customer/account holder

In addition to the above, explicit authority must be given by the account holder to the user/collecting party to debit his/her account per the mandatory elements above. It has always been a requirement that a debit order mandate must include authorisation by the account holder, but for the elimination of any doubt, the new rules are placing more emphasis on the nature of the authorisation which should be very explicit with regard to debiting the bank account and in line with the crucial criteria.

Here is an example of a mandate.

Paper Mandate

When signing up new customers for paper mandates, the following minimum requirements must be applied:

  • Account Number

  • Type of Account

  • Branch Number

  • Frequency of Debit

  • Abbreviated Name on Client’s Bank Statement

  • Contract Reference

  • Action Date

  • Start and Termination Date

  • Beneficiary Name

  • Beneficiary Contact Details

  • Amount

  • Signature of Account Holder

Voice Mandate

The following details must be included during the voice recording process:

  • Abbreviated Name on Bank Statement

  • Beneficiary Name

  • Call Center Name

  • Contact Telephone Number

  • Contract Reference Number

  • Current Date

  • Commencement/Action Date

  • Payer’s Bank Account Details including account number, type of account, and branch code

  • Surname and Initials of Account Holder

  • Value of Amount to be Deducted

Voice Mandate Compliance and Confirmation:

  • Disclosure of Recording: The customer must be informed that the call is being recorded and that the recorded message will serve as their official authority for debit transactions.

  • Disclosure of Reference and Abbreviated Name: The customer must be informed of the unique contract reference and abbreviated name that will appear on their bank statement.

  • Written Confirmation: The recorded voice mandate must be confirmed in writing to the account holder within 21 days of the recording, and before any debit payments are processed.

  • Recording Quality: The recording devices must be reliable and provide acceptable acoustic quality, preferably SABS-approved.

  • Access to Recordings: The recorded messages must be properly indexed for easy access in order to handle any inquiries or disputes promptly.

Electronic Mandates

When signing up new customers for electronic mandates, the following minimum requirements must be applied:

  • Account Number

  • Type of Account

  • Branch Number

  • Frequency of Debit

  • Abbreviated Name on Client’s Bank Statement

  • Contract Reference

  • Action Date

  • Start and Termination Date

  • Beneficiary Name

  • Beneficiary Contact Details

  • Amount

  • Electronic Signature of Account Holder

  • IP Address and Location Coordinates

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