Preparing your business for the shift from RMS to RM: a practical guide
With the mandatory transition from the Registered Mandate Service (RMS) to the Registered Mandate (RM) payment stream on the horizon, many businesses are wondering how best to prepare for the upcoming changes. Corne van Rooyen, Product Owner at Amplifin offers his insights and suggestions.
With the mandatory transition from the Registered Mandate Service (RMS) to the Registered Mandate (RM) payment stream by 10 March 2025, many businesses are wondering how best to prepare for the upcoming changes, which may have a significant impact on the success rate of collections currently being presented as RMS collections due to RM collections being processed in the early evening rather than early in the morning. The shift presents a significant operational challenge, particularly for companies that have a dependency on RMS debit orders. It is critical to plan and implement new processes now, to avoid disruptions in your collections later. This guide offers a practical approach to managing this transition, including the steps businesses should take, the tools available, and the solutions offered by Amplifin, a leading provider of payment and collection solutions in South Africa.
Step 1: Assess the Extent of RMS Usage
The first step in preparing for the shift is assessing how many of your collections are currently reliant on RMS debit orders. Many businesses do not have an accurate grasp of their RMS usage and underestimate the extent of the challenge. A crucial first step is to "ring-fence" your RMS debit orders, understanding exactly how many fall under this category.
"Many business owners assume they have a clear picture of their debit order book," says Corne van Rooyen, Product Owner at Amplifin. "But when we meet with them and review their reports, they often find that, in many cases, their RMS usage is much higher than they are aware of. At Amplifin, we ensure that the necessary reporting is available to our clients through our online platform, ALLPS-i. This comprehensive set of reports, which clients can access at any time, allows them to accurately identify their RMS dependency. Additionally, during visits with their dedicated consultants, we provide these reports and engage proactively".
Step 2: Begin the Authentication Process for RMS Debit Orders
With a full understanding of your current RMS debit order volume, the next step is an additional attempt at obtaining authentication. One of the most pressing tasks for businesses during this transition is authenticating RMS mandates so they can be presented as authenticated DebiCheck collections. This process involves contacting the affected debtors to attempt to authenticate their mandates. This can be time-consuming but is critical in ensuring that collections are presented in the early morning processing window going forward. Businesses that delay this process risk falling behind, as the 10 March 2025 deadline looms.
To make the transition smoother, especially for call centres, a combination of TT1 Real-Time and TT1 Delayed authentication methods can be used.
TT1 Real-Time allows the authentication request to be sent while the debtor is still on the phone, giving them 120 seconds to respond via channels such as USSD Push or their mobile banking app. TT1 Delayed provides more time flexibility, allowing the debtor to respond up until 22:30 on the same day through their bank's channels, including online banking or ATM. Businesses should aim to use these methods to reauthenticate their existing mandates as quickly as possible.
"Time is running out. The earlier businesses start authenticating their RMS debit orders, the better prepared they will be for the March 2025 deadline," warns van Rooyen. "The process of engaging with existing debtors can be lengthy, especially when you're dealing with large volumes. Waiting until the last minute is a recipe for disaster."
Step 3: Analyse the Impact on Your Collections
Understanding the potential impact of the transition on your business is crucial. We recommend running an impact analysis by conducting a small sample test using EFT Debit Orders on a known salary date. EFT Debits are processed in the early evening, although RM will be processed before EFT Debit Orders, this should provide a good indication of the success rates you can expect when collections are processed in the new RM payment stream. Compare the success rates between early morning processing and late processing to get a clearer picture of how these changes might affect your collections post-March 2025.
Step 4: Train Your Call Centre Staff
A key part of ensuring a smooth transition from RMS to DebiCheck is equipping your call centre agents with the necessary skills and knowledge to facilitate mandate authentication. This process is critical as agents will be interacting with debtors directly to secure new DebiCheck mandates.
At Amplifin, we offer in-depth training for call centre staff that focuses specifically on the technical aspects of DebiCheck and the practical application of authentication processes. Our training equips agents to handle a variety of authentication challenges debtors may encounter, ensuring they can effectively guide debtors through the process. As van Rooyen explains, "Simply following a script won't suffice. Our approach ensures that agents are skilled in utilising the various authentication mechanisms, ultimately leading to higher authentication success rates".
Agents are trained on the history of DebiCheck and how all the various authentication mechanisms work. They are also given access to the DebiCheck Decoded document, a guide that helps them navigate the various authentication mechanisms for all DebiCheck participating banks. This allows agents to confidently walk debtors through the process, enhancing the overall success rate of authentication.
Step 5: Adjusting Sales Infrastructure: Some companies have the flexibility to withhold the delivery of goods, services and credit until DebiCheck mandates are authenticated. With the current availability of RMS collections, many businesses have grown complacent, believing their success and dispute rates are adequate when deductions are processed as RMS collections and are willing to provide the goods, services and credit without authentication having been obtained. However, in the new RM environment, there may be a significant impact on the success rate of these deductions. It is, therefore, crucial for companies to implement stricter controls, ensuring that no products, services or credit is provided before mandate authentication is obtained.
Step 6: Ongoing Consultation and Support
Once the initial transition steps are complete, businesses should not expect to be done with the process. Ongoing consultation is critical to ensure that the new systems and processes continue to function effectively.
Until the cutover date, businesses must continually manage new RMS mandates to obtain authentication. After the transition, RM mandates will also require ongoing review, focusing on obtaining authentication to reduce collection and disputability risks.
"Amplifin doesn't just stop after the first consultation. We're committed to regularly reviewing the workflows and agents' abilities with our clients, making the necessary adjustments to ensure continued success," says van Rooyen. "We help businesses keep their finger on the pulse of their operations, addressing any issues that arise and refining processes bit by bit."
This ongoing support helps businesses avoid potential pitfalls and ensures that the improvements made during the transition are sustainable over the long term.
Tools and Solutions Available to Aid the Transition
A range of technological solutions are available to help businesses manage this shift. The most common tools are TT1 Real-Time and TT1 Delayed, both of which allow businesses to authenticate mandates efficiently in a non-face-to-face environment.
However, for businesses that require face-to-face authentication, Amplifin provides a valuable tool known as AMP.
AMP leverages Amplifin's established nationwide network of Contracted Network Entities (CNEs), who use Amplifin's multifunctional mobile devices to perform face-to-face TT3 authentications. These devices enable debtors to authenticate their mandates using their bank card and PIN, with real-time processing. In addition, AMP allows for paperwork, such as Acknowledgement of Debt, to be signed electronically during the same session.
"With our AMP solution, businesses can easily request face-to-face TT3 authentication," van Rooyen explains. "Our user-friendly platform allows businesses to upload their authentication requests, and the experienced CNEs, located across the country, will obtain the TT3 authentication on their behalf."
This service is particularly effective for collections with a high value or collections that have not as yet been handed over to external debt collectors.
Businesses need to be realistic about their expectations. "There's no silver bullet," notes van Rooyen. "Every business has unique needs, and that's why it's important to adopt a multifaceted approach. At Amplifin, we work with you to ensure that all available tools are used effectively to meet your specific requirements."
Conclusion
The transition from RMS to RM is an opportunity for businesses to streamline their collections processes and adopt more modern, efficient payment methods. While the move may seem daunting, businesses that take proactive steps now will be well-positioned to succeed in the new environment.
As van Rooyen emphasises, "There's no one-size-fits-all solution. Every business is unique, and it's critical to adopt a comprehensive approach that aligns with your specific needs."
Start your transition today and ensure your collection processes remain as seamless as possible when the new RM payment stream comes into effect in 2025.
