09 September 2016
From 28 November 2016 our Participants are making improvements to the processing of electronic credits.
What are electronic credits?
Electronic credits are forms of payment transactions such as automatic payments, bill payments and direct credits.
What is changing?
A new industry standard, effective from 28 November 2016, will increase the surety of payments by removing the ability for any electronic credit to be dishonoured for insufficient funds.
What are the benefits?
For the recipient of electronic credits, this means once the payments are credited to their account they cannot be dishonoured for insufficient funds. This new standard will also make it more likely that the recipient has immediate access to these funds.
Are there any reasons why an automatic payment, bill payment or direct credit can be dishonoured or reversed after 28 November 2016?
Electronic credit payments will not be dishonoured for insufficient funds from 28 November 2016. They can however, subject to specific conditions, be reversed in some circumstances i.e. duplication.
Will a customer have to make any changes to the way they initiate electronic credit payments?
No, the creation and processing of an electronic credit payment, from the customer perspective, will continue in the same way as today.
Does this affect the processing of direct debits?
This new standard will not affect the payment of direct debits. These payments can still be dishonoured for insufficient funds.
Does this affect the processing of cheques?
This new standard will not affect the payment of cheques. Cheques can still be dishonoured for insufficient funds.
Want to know more?
If you would like to know more about the changes and how they may affect you and the processing of your payments, please contact your bank or financial institution.
If you would like to know more about the industry initiative behind these changes, you are welcome to contact us.
If you want to know more about how these changes and others are helping to improve our core SBI payments system, see our article Improvements to payments processing is good news for Kiwis