Guest Contributor | Apr 16, 2021 | 0
Nedbank reveals how NamPay will impact its clients
The Payment Association of Namibia (PAN) launched a new enhanced electronic transfer system called NamPay at the beginning of the month and Nedbank Namibia this week unpacked how the system will impact their clients.
The first phase of the project, consisting of the implementation of the enhanced debit order service (EnDO), went live on 15 April.
“Once clients have been moved onto the new NamPay system, they will notice that debit orders are no longer collected in a pre-determined prioritized order from their bank accounts. NamPay will assign random sequences to the different debit orders, which means that amounts will be deducted in a different order every month,” explained Richard Meeks, Executive of Retail Banking.
However, Meeks highlighted that migrating clients from the old system to the new system will take place over an eighteen-month period.
“Because the roll-out of the system will happen gradually, some clients might not experience any impact immediately,” he said.
Another major change will be new transaction descriptions for debit orders on clients’ bank statements.
“Clients should take note that the transaction descriptions for debit orders will differ from what appeared on bank statements previously,” he explained
As a result of the new NamPay system and its impact on the clients, Nedbank revised and updated its terms and conditions, which is available on the Nedbank Namibia website.
As part of the EnDO payment stream, credit tracking is a new service offered by PAN to third parties who wish to use debit orders for their customers. For example, service providers sometimes use debit orders to ensure timely payment of services rendered. All service providers or businesses that wish to make use of debit orders must be registered with PAN.
Upon registration, these service providers can choose to activate credit tracking, which means the system will continuously check for funds on a client’s bank account if a debit order could not be deducted due to insufficient funds. During the day continuous checking for funds (credit tracking) will take place until 14h30 (2:30pm) on weekdays and 9h30 (9:30am) on Saturdays. The system allows for the checking of funds on a bank account for up to fourteen days.
Following a decision taken by the Bank of Namibia, PAN in partnership with the banking institutions and suppliers, introduced a new enhanced EFT system to the Namibian financial sector.
Meanwhile, introducing NamPay ensures that Namibia and its national payment system remains on par with international standards.