Debit order disputes and the 60-day rule: a business guide

Since 13 April 2026, a customer who disputes an EFT debit order with their bank within 60 days of the debit gets the money reversed automatically; disputes raised after 60 days are generally only considered in exceptional circumstances after the bank investigates. Valid DebiCheck debit orders, collected in line with the mandate the customer approved with their bank, remain non-disputable.

For businesses, this means a shorter tail of risk than before, but no protection at all in the first two months unless you use DebiCheck. Your defence is a clean mandate and clear communication.

What changed on 13 April 2026

The change was an industry initiative led by the Payments Association of South Africa (PASA), together with the South African Reserve Bank and the Financial Sector Conduct Authority, as reported by debit order providers including Netcash.

In short: customers gained 20 more days of no-questions-asked reversal, and businesses gained much more certainty about older collections.

What a dispute looks like from your side

1. Your customer tells their bank a debit wasn't authorised or was incorrect.
2. Within the automatic window, the bank reverses the debit to the customer.
3. Your provider debits the reversed amount (and usually a dispute fee) from your account or from retained funds.
4. The transaction appears in your provider's reports with a dispute code (for example 30, "no authority to debit", or F2 for a disputed DebiCheck instruction).

The automatic reversal doesn't mean the customer doesn't owe you. It means the bank won't adjudicate who's right; the dispute between you and your customer is now a contractual matter.

Why customers dispute debit orders

• They don't recognise the statement name. The most avoidable cause.
• Surprise amount. A price increase without notice, or arrears added without warning.
• They cancelled and you kept collecting. Cancellation not processed in time.
• Buyer's remorse or financial pressure. Disputing is easier than negotiating.
• Genuinely unauthorised debits. Fraud or a collection on the wrong account.

How to respond to a dispute

1. Stop further collections on that mandate until you've spoken to the customer. Re-collecting after a dispute without resolving it invites another dispute and can put your provider relationship at risk.
2. Retrieve the mandate and evidence: signed or electronic mandate, authentication record, invoices, usage records, communication history.
3. Contact the customer calmly. Often it's a misunderstanding (an unrecognised name, a spouse querying the debit).
4. Agree a way forward: a new mandate, a once-off payment via a payment link, or an arrangement.
5. If the customer refuses to pay a legitimate debt, treat it as any other overdue account through your credit control process and, where necessary, legal recovery.
6. Fix the root cause. Log the reason for each dispute and review monthly.

Reducing disputes

• Use a clear abbreviated name and confirm it at sign-up.
• Send pre-debit reminders, especially the first debit and after price changes.
• Process cancellations promptly and confirm them in writing.
• Keep mandates complete and retrievable (see the mandate checklist).
• Verify bank accounts so you never debit the wrong person.
• Consider DebiCheck for products with high dispute rates or large amounts.

Rights your customers have

Understanding the customer's view helps you design fair processes:

• They can stop a specific payment or cancel a mandate with their bank.
• They can dispute an EFT debit order and have it reversed within 60 days.
• They can complain to you, and escalate unresolved matters with banks to the relevant ombud.
• Cancelling a debit order doesn't cancel a contract; the Consumer Protection Act and the contract itself govern how and when an agreement can be ended.

Impact on your cash flow

Disputed amounts are clawed back, often with a fee, and providers may raise your retention if your dispute rate climbs. Budget for it:

• Track disputes as a percentage of successful collections, monthly.
• Don't treat debit order revenue as final until the 60-day window has passed. For accounting it's still revenue, but for cash planning keep a buffer.
• Review your provider's retention terms; they're designed to cover exactly this risk.

How CentraPoint helps

CentraPoint stores each customer's signed electronic mandate (for Netcash debit orders) against their profile, alongside invoices, payments and communication history, so you can pull the evidence quickly when a dispute arrives. Disputed or returned collections are flagged on the customer's record and the related invoice goes back to outstanding, ready for follow-up with a payment link. See the debit order docs.

Frequently asked questions

Can a customer reverse a debit order after 60 days?

Since 13 April 2026, disputes raised after 60 days are only considered by the bank in exceptional circumstances following an investigation. Within 60 days, EFT debit order disputes are reversed automatically.

Can a DebiCheck debit order be disputed?

A valid DebiCheck debit order that matches the mandate the customer approved with their bank is not disputable. If the amount or date doesn't match the mandate, it can be disputed.

Does a dispute mean the customer no longer owes me?

No. The reversal only returns the money through the banking system. The underlying debt under your contract still stands and can be collected by other lawful means.

Can I charge a fee when a customer disputes a debit order?

Only if your terms allow it and the fee was disclosed upfront. Be cautious: if the dispute was valid (for example, you debited after cancellation), charging a fee will make matters worse.