Namibia’s new electronic fund transfer (EFT) system
The new national EFT system is called NamPay. Following a decision taken by the Bank of Namibia, the Payment Association of Namibia (PAN) in partnership with the banking institutions and suppliers, a new enhanced EFT system is being introduced into the Namibian financial sector. This system will comprise of three new payment streams. They are enhanced debit orders, enhanced credit payments and near-real-time credit payment transfers that will transform electronic fund transfers in Namibia.
The Bank of Namibia issued a Payment System Directive (PSD7), in accordance with which an enhanced electronic fund transfer system has been implemented. Introducing NamPay aims to ensure that Namibia and its national payment system remains on par with international standards.
The most prominent feature of NamPay would be that debit orders will no longer be deducted from clients’ accounts in a specific, predetermined prioritised order. NamPay will assign random sequences to debit orders submitted for collection in the national payment system. This means that your debit orders will be deducted from your bank account in a different order every month.
EnDO is an abbreviation that refers to electronic "enhanced debit orders". The current debit order system will be replaced by an enhanced collections process, called EnDO.
The most prominent feature of NamPay would be that debit orders will no longer be deducted from clients’ accounts in a specific, predetermined prioritised order. NamPay will assign random sequences to debit orders submitted for collection in the national payment system. This means that your debit orders will be deducted from your bank account in a different order every month. NamPay will also have a feature called credit tracking. This means that a debit order, which has not been paid for at the time when it was submitted to a customer’s account for payment, will be deducted as soon as enough funds have been paid into the specific customer’s account within a 14-day period.
Kindly take note that:
Service providers may choose to activate credit checking. Credit tracking is the continuous checking of funds on your account in the event that the debit order amount was not deducted from your bank account due to insufficient funds. Service providers may choose to check your account continuously for up to 14 days – the checking period may be shorter but it will not be longer than 14 days.
The new enhanced EFT system resulted in changes to the terms and conditions between the bank and its customers. To ensure that all the changes and impacts on the customers are duly considered in terms of Nedbank’s commitment to superior customer service, the terms and conditions have been updated. Kindly click on the link below for the new terms and conditions. Follow the Terms and Conditions tab to find the new Nedbank terms and conditions.
In addition to the EnDO stream, which will be implemented in the first phase as from April 2019, the second phase consists of the Electronic Credit Payments or Enhanced Credits (EnCR) and the third phase is Near-Real-Time Credit (NRTC).
Thus, in addition to EnDO, the current electronic funds transfer (EFT) system will be replaced with two more streams called EnCR and NRTC.
Although NamPay went live on 15 April, the EnCR and NRTC streams will be activated during an 18-month period. Thus, it is not yet available and Nedbank Namibia commits to keeping the clients informed the process and further developments in this regard.
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