Following the recently announced rules from the Payments Association of South Africa (PASA) to reduce the maximum value of cheque limits to R50 000, businesses are urged to adopt electronic banking channels.
The updated rules come into effect in May 2020, with an eight-month grace period to be granted for cheques that are yet to be processed by the due date.
Kenneth Matlhole, FNB Business Spokesperson, says several businesses and public institutions that still have cheques built into their operations will be heavily impacted by the decision. This ranges from schools, churches, scrap metal dealers, agriculture, motor industry, fiduciary services and auctioneers, amongst others.
He unpacks important factors for businesses to consider as they reduce their reliance on cheques, prior to the implementation of the new rules:
Act now – depending on the nature of the business or institution, moving away from a traditional payments system may result in cash flow disruptions. Business should allocate enough time for migrating to new payments systems. It is also essential to ensure that staff members are trained accordingly.