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EFT Credits originate whenever a customer of a bank issues a payment instruction to his or her bank via various delivery channels (e.g., internet) to make an electronic payment to a Service Provider accepting that such payment will not be made immediately but either later that day or on a future date.
Customers must ensure that the correct beneficiary account number are provided to the bank when issuing the payment instruction as all processing/transfer of funds is performed solely based on this account number.
Transactions initiated by customers are sent by the Paying Bank to the Beneficiary Bank at the close of the day in a batch via the PCH System Operator (PSO) to be credited to the account of the customer. Such a transaction is final and irrevocable. The transaction cannot be reversed once processed by the receiving bank. Any mistake may only be corrected by way of a new transaction initiated with full approval of the beneficiary of the funds. Batches of transactions received from other banks are processed overnight by the receiving bank to the account of its customer and unsuccessful transactions are returned to the paying bank the next business day. This process does not apply to bank errors.
A stop order or standing order is an instruction issued by the consumer to their bank to make a series of future dated recurring payments. Stop orders are a facility provided by paying banks directly to their customers. Authorisation to initiate payment instructions is given directly by the customer to the bank instead of to a User/beneficiary. Authorisations and mandates are authenticated and verified up front by the relevant paying bank either at a branch or via call centre or internet banking facility. Payments are facilitated by the paying bank for credit of the nominated account.
South Africa pioneered the first interbank Real Time Clearing (RTC) payment system. An RTC transaction is an interbank electronic credit payment instruction issued by the payer to the paying bank to transfer funds from the account of the payer to the account of a beneficiary, which payment instruction is delivered by the paying bank to the credit of the beneficiary account within 60 seconds.
This type of transaction is offered across select channels such as branches, call centres, the internet and cell phone banking. The service was launched for the first time in 2006, founding members were ABSA, FNB and Capitec. Now the service is available through majority of the clearing banks. Prior to this, RTC payments between accounts were only possible on an intra-bank basis. RTC requires the funds to be applied directly to the receiving account within 60 seconds. The transaction values are limited to the item limits applicable. Real time transactions of higher value must be routed via RTGS.
Low value credits
Are transactions that:
- Are R5m and below
- Has four different services, being: Realtime, Same Day, One Day, and Two Day
- Are Realtime
An RTC transaction is an interbank electronic credit payment instruction issued by the payer to the paying bank to transfer funds from the account of the payer to the account of a beneficiary, which payment instruction is delivered by the paying bank to credit the beneficiary account within 60 seconds.
This type of transaction is offered across select channels such as branches, call centres, the internet and cell phone banking
Same Day, 1 day and 2 day
- High value payments are payments over R5 million. Given the large values these payments are usually made by specific markets e.g., corporate and equities market.
- High value payments in South Africa are processed using a real time gross settlement (RTGS) method, in line with world best practice.
- A centrally managed real-time Funds Transfer (“clearing”) capability between authorised participants, included in which is the reconciliation of cleared transactions between participants, the facilitation of settlement obligations in the South African Reserve Bank settlement system, and all required reporting associated with both clearing and settlement. The Funds Transfer Service is an always on, 24/7/365 financial messaging capability.
- A centrally managed proxy resolution service allowing registered proxies (or “aliases”) to be resolved into payee Store of Value details. The Proxy Service is an always on, 24/7/365 non-financial messaging capability. The service will enforce a resolution-before-clearing model.
- A centrally managed Request to Pay service allowing end-users to initiate a request for payment addressed to another end-user, or a registered proxy of another end-user, have that routed to the relevant recipient for action. The Request to Pay Service is an always on, 24/7/365 non-financial messaging capability