How Does The Failed Debit Charge Affect Platforms Like Cowrywise & Co? - Investment

How Does The Failed Debit Charge Affect Platforms Like Cowrywise & Co? - Investment - Nairaland

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How Does The Failed Debit Charge Affect Platforms Like Cowrywise & Co? by AdvisorOpe(op): 8:13am On Nov 23, 2020*

Last week all got news that the CBN will now charge customers for failed debits. If you use an automated savings/investments platform like Cowrywise or Bamboo, this might worry you. As you’ll have questions around what happens when a debit attempt from such platforms fail for you.

First, we need to understand what this law states. In summary, when a direct debit fails, the customer will be charged 1% of the amount of ₦5,000–whichever is higher.

With that cleared, your arrangements with online saving platforms usually involve debits from your cards. These are not the same as direct debits. A direct debit involves you signing a standing order for payments from your bank account. If it fails, the bank will retry automatically.

On the other hand, automated card debits are categorized as web purchase POS payments. Once they fail, they aren’t retried. They are not direct debits. Neither does a direct manual top-up from your bank to these platforms qualify as a direct debit.

Stay saving and investing.

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Re: How Does The Failed Debit Charge Affect Platforms Like Cowrywise & Co? by dawnomike(m): 8:39am On Nov 23, 2020

AdvisorOpe:
Last we all got news that the CBN will now charge customers for failed debits. If you use an automated savings/investments platform like Cowrywise or Bamboo, this might worry you. As you’ll have questions around what happens when a debit attempt from such platforms fail for you.

First, we need to understand what this law states. In summary, when a direct debit fails, the customer will be charged 1% of the amount of ₦5,000–whichever is higher.

With that cleared, your arrangements with online saving platforms usually involve debits from your cards. These are not the same as direct debits. A direct debit involves you signing a standing order for payments from your bank account. If it fails, the bank will retry automatically.

On the other hand, automated card debits are categorized as web purchase POS payments. Once they fail, they aren’t retried. They are not direct debits. Neither does a direct manual top-up from your bank to these platforms qualify as a direct debit.

Stay saving and investing.

You captured it perfectly well in your explanation

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Re: How Does The Failed Debit Charge Affect Platforms Like Cowrywise & Co? by AdvisorOpe(op): 9:33am On Nov 23, 2020

Thank you.

dawnomike:
You captured it perfectly well in your explanation

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