Low Value Credit Payments

Note: The maximum value of a Low Value Credit Payment is currently set at R5 000 000- (Five Million Rand). Any electronic payment more than R5 000 000- can only be done through the High Value Payments system.

Low Value Credit Payments processing
Low Value Credit Payments, also referred to as EFT Credits, originate whenever a customer of a bank issues a payment instruction to their bank via various delivery channels to make an electronic payment to a third party, accepting that such payment will not be made immediately but either later that day or on a future date. This instrument may also be used where a customer issues an instruction to their bank to make a series of recurring payments in the future. Such payments are commonly referred to as Electronic Account Payments or Bill Payments and sometimes as “Stop orders” or “Standing orders”.

Low Value Credit Payments are widely used by employers to make salary payments and are used more and more by customers to replace cheque payments, especially by issuing the instructions through use of the Internet or Call Centre services of their bank. Customers must ensure that the correct beneficiary account number is provided to their bank when issuing the payment instruction as all processing/transfer of funds is performed solely based on this account number.

Transactions mandated by customers are sent by the Paying Bank to the Receiving/Beneficiary Bank at the close of the day in a batch via the inter-bank operator 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 recipient 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.

In the process of clearing, the account of the paying customer is debited and the account of the receiving customer is credited with the transaction amount. This transaction will reflect on the bank statements of the customer along with the reference information provided by the user. Depending on the functionality provided by the paying bank to its customers the availability of funds via this system may vary. It is important that a paying customer ensures its bank will be forwarding the transaction to the operator for processing on the same day or at a later date as the service provides for same day or deferred processing. The capability of a bank to present a transaction for value the same day would be affected by the time of day that the transaction is initiated by the paying customer, as specific cut-off times, which vary from bank to bank, are applied by the banks to facilitate the processing of the batches in time for the industry cut-off.

Some banks have integrated their customer systems in such a way that transactions under R5million are automatically routed through this system and the customer may also specifically request processing through the High Value Payments System. In some banks, funds received via this medium are automatically applied to the account specified in the transaction. Not all banks have automated their systems and as such require manual intervention before funds are credited to the specified account.

Rules affecting customers

NB: Once Payments made through this system have been transferred to a beneficiary account/bank they cannot be recalled.

• Where more than one bank is involved, although the banks make every effort to transfer funds quickly between them, the nature of the system that involves overnight processing means that the funds may take between 24 and 48 hours to reflect on a customers statement.
  
• Funds so transferred will be available immediately upon being credited to the account of the specified beneficiary, without fear of recall.
  
• Payments are made on the basis of the account number of a receiving/beneficiary client, the date and the amount only. No other information, which may be supplied by the paying customer, is used by the bank/s in performing the transaction. The paying customer is responsible for ensuring the correct beneficiary account number is provided to the paying bank. Neither the paying nor the receiving bank can be held liable if they acted on information supplied by the paying/initiating customer.

Note: Obviously if the paying client makes an error and some other person besides the intended beneficiary receives the funds the paying customer has the right to the return of these funds through the rule of unjust enrichment, and the banks will assist him/her where possible to affect such recovery.

Resolving problems

A customer experiencing problems with any payment made or received through this system must take the matter up with their own bank.