BankTech’s Collections Engine offers a practical debit order collections solution that helps businesses process and collect recurring payments faster and more efficiently, using the latest financial technology that can be seamlessly tailored to suit their unique customer preferences.

In order to decide which debit order collections facility suits your business needs, it’s important that you understand the differences between them.

There are four main debit order collections facilities: Electronic Funds Transfer (EFT), Authenticated Early Debit Order (AEDO), Non-authenticated Early Debit Order (NAEDO) and DebiCheck.

1. EFT Debit Orders


  • EFT debit orders are disputable and no tracking is allowed.
  • Transaction costs are low due to lowered bank fees.


  • Money cannot be collected from a customer’s account without direct permission.
  • It can take up to 5 days from collection for money to be released.

2. Authenticated Early Debit Orders (AEDOs)

AEDO is a debit order collections facility whereby an electronic mandate is created by a consumer in person using his/her bank card and PIN number at a point of sale terminal.


  • Due to its physical authentication process, AEDOs are not easily disputed, which therefore reduces the risk of fraud for merchants.
  • Continued tracking is possible (up to 32 days), increasing the success rate of collections.


  • AEDOs offer less flexibility than other authenticated mediums, as authentication must be done in person.
  • In addition, since the implementation of DebiCheck, AEDOs have lost processing priority in the early collections window.

3. Non-authenticated Early Debit Orders (NAEDOs)

NAEDOs were introduced to allow creditors to collect funds from debtors, using paper-based or voice mandates for debit order transaction authorisation. Like AEDOs, all NAEDO payment instructions are randomised and processed in the early window to improve collections success.


  • Continued tracking (up to 32 days) is possible.
  • Funds are available immediately after being processed.


  • Debit orders can be easily disputed due to lack of authentication, which has led to rising illegal debit order activity, as reported by PASA in 2019.
  • NAEDO is currently being phased out as a debit order collections facility and from 1st May 2021, no new NAEDO contracts will be allowed, with termination of NAEDO collections proposed from 31st October 2021.


DebiCheck was introduced by the Payments Association of South Africa (PASA) as a way to reduce fraudulent debit order activity and to offer greater protection to both consumers and merchants. It will eventually replace all Early Debit Orders (AEDOs and NAEDOs). It is also known as ‘authenticated collections’ as it requires a once-off electronic confirmation from a consumer before any new direct debit order can be authorised and processed to the consumer’s bank account.


  • DebiCheck allows for continued tracking and is currently processed first in the early processing window.


  • DebiCheck is more expensive than other debit order facilities, due to the increased processing requirements, and requires an authentication at the initiation. This will reduce as the uptake increases.

Contact BankTech today if you are interested in a debit order collections solution to help your business process and collect recurring payments with ease.