Non-Authenticated Early Debit Order


Non-Authenticated Early Debit Order (NAEDO) aims to level the electronic debit order collection playing field by creating an equal opportunity for creditors to collect funds from their debtors. The NAEDO system is a National Credit Act initiative launched in September 2006.

NAEDO debit order collections allow for collecting up to R5,000.00 per debit instruction and run in a preferential, randomised manner before the standard EFT debit order run. This ensures that each creditor has an equal chance of successful collection.

Note: As of 1 September 2013 the NAEDO limit will be raised to R10,000.00 per debit instruction and from 1 March 2014 this limit will further be raised to R15,000.00.

Credit tracking of up to 32 days may be included on NAEDO collection instructions. If a debtor obtains funds within the tracking period these will be immediately debited to fulfill the NAEDO debit order.

Ask us today about a NAEDO facility for your business.

What is the NAEDO service?

The NAEDO collection service is provided by participating banks, which enables companies and other bodies to process payments entirely by computerised means. The service can be used for collecting payments from clients (debits).

NAEDO payment instructions support multiple presentments thereof. If these are unpaid after the first presentment, credit tracking may be invoked. Credit tracking is optional and if selected, the unpaid NAEDO payment instruction will automatically be represented during the afternoon of the same business day and for the consecutive amount of days selected, twice a day, on business days until payment is received or until expiry of the tracking period selected.

All NAEDO payment instructions, are randomised giving all Users an equal opportunity of receiving payment and are processed as close as possible after salary credits are paid into the bank accounts of Customers in the early morning.

What type of transactions can be processed through a NAEDO facility?

Only debits may be processed through the system. The following criteria will apply:

  • Debits may be processed against current, certain savings and transmission accounts. Debits to bond and subscription share accounts are not allowed.
  • A maximum value limit of R5 000 per transaction is in place. The splitting of transactions to avoid the limit restrictions is not permitted.
  • All NAEDO system instructions must be uniquely identifiable by the Agreement Reference and payment cycle.

Coverage of the NAEDO service

The NAEDO collection service covers all types of accounts permitted by the NAEDO system service rules and which are held in the Common Monetary Area by participating banks. A list of participating banks can be obtained on application.

Cut off times for NAEDO collections

The user must ensure that data is submitted within the cut off times specified. These times allow the us sufficient time to ensure the data is processed and submitted even in the event of a major disaster recovery event occurring, and must be adhered to. Any data submitted after the times set out below will only be processed on a best efforts basis, and the onward delivery of the data cannot be guaranteed.

The bank will accept data Mondays to Fridays excluding public holidays.

Data must be submitted at the latest by 12h00 one day prior to action date. Any data submitted after this will incur a penalty.

Note: Processing of NAEDO payment instructions and credit tracking on official public holidays and weekends is bank specific

Membership to the Payment System Stakeholder Forum (“PSSF”)

The PSSF is a body set up by the SA Reserve Bank to monitor the usage of EDO and ensure that all users comply with the rules and regulations applicable to EDO. All NAEDO users must become members of the PSSF. The PSSF charges an annual fee of R750 for membership.

In this capacity, the PSSF has the right to terminate any membership based on evidence that any particular user or member thereof is contravening EDO rules and regulations. If such membership is terminated, the affected user will no longer be permitted to utilise NAEDO.

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