Absa has improved its Mzansi bank account, which is aimed at low-income earners, by adding a debit order facility to the account.
FNB was the first bank to provide debit order functionality to its Mzansi account in February this year. Standard Bank and Nedbank plan to follow suit soon with theirs.
Dave Liebenberg, the general manager at Absa Flexi Banking Services, says the debit order facility will expand access to financial services for Mzansi customers because most insurance companies and credit providers insist that premiums and instalments are paid by debit order.
The Absa transaction fee is R4.50 for each debit order. Clients will be charged a fee of R30 for each debit order transaction that is denied due to insufficient funds in the account.
Mzansi accountholders have also been able to benefit from the introduction of free cellphone banking which was launched last year and will continue until the end of September when Absa will consider continuing the free service or begin charging a fee.
Cellphone banking allows you to top up airtime, check account balances, view statements and make transfers for free.
First National Bank's Mzansi customers have been able to set up debit orders and perform third-party payments on their accounts since February this year. The cost of a debit order transaction (external) is R5.50 and the cost of an unpaid debit order is R30.
Erik Larsen, a spokesman for Standard Bank, says the bank is finalising details of the debit order functionality on its Mzansi BlueAccount. Implementing the facility is easy, he says, but the bank is looking at ways to ensure that customers are educated on the debit order facility and its uses.
Bryan Mclachlan, the head of Nedbank's transaction and investment products, says Nedbank is working on the introduction of debit orders on Mzansi accounts.
The required system changes are currently being made and debit order functionality will be available in the near future.