Debit order disputes have become a major thorn in the side of South African banks as the number of disputes due to unauthorised transactions has increased.
FNB has just revealed that debit order disputes by its customers have decreased by 40% from pre-festive season levels.
In February, the Bank announced its participation in a range of industry measures to combat debit order fraud. Industry efforts included the reversal of files from identified fraudulent users, steps to investigate offenders leading to prosecution, and lastly the implementation of strict governance around the acceptance of users and third-party payment providers.
Dr. Christoph Nieuwoudt, CEO of FNB Consumer says, “Illustrating the effectiveness of the measures taken, we are particularly pleased to see that debit order disputes among our customers have reduced from heightened levels recorded between December 2018 and February 2019. While we can never be complacent and continuously improve our monitoring, enhanced monitoring is in place to flag suspected fraudulent users, indicating the current levels of disputes may be mostly contractual disputes and money management as opposed to outright fraud.”
In line with its standard practice, FNB informs customers of new debit orders loaded on their bank accounts. In addition, customers can stop, dispute or reverse unauthorised debit orders of less than R200 for free on the FNB App, Online Banking and cellphone banking for those who do not have access to the internet and smartphones.
FNB App registered InContact users also receive alerts for all transactions regardless of the amount, giving customers full visibility of all monthly debit orders processed against their accounts. Along with the notification system, the bank’s electronic platforms allow customers to view current debit orders that are running off their account as well as the ability to stop, dispute and reverse the ones they believe are unauthorised.
“Debit orders that are higher than R200 can still be stopped, disputed and reversed via the FNB contact centre or at any FNB branch. While we treat every case on its individual merits, debit order disputes above R200 may incur a fee to prevent potential abuse such as the reversal of legitimate debit orders,” concludes Dr. Nieuwoudt.
