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Overview of Payment by Direct Credit
What is direct credit?VEA ?
Payment of pension instalments by direct credit involves the electronic transfer of funds from DVA's drawing account, via the Reserve Bank, directly into an account with a bank, building society or credit union, specified by a pensioner.
DVA preference for direct credit
Commission's policy is to direct pensioners to receive their payments by direct credit.
Advantages of direct credit payment
In comparison with other forms of payment, direct credit is:
- administratively more efficient and cost effective
- more reliable
- easily traced
- less open to fraudulent claims
- easier for the pensioner to utilise, as he or she can withdraw money when required by several different means, and
- safer for the pensioner.
Exemptions from direct credit
An exemption from receiving payment by direct credit can be granted in exceptional circumstances where the person receiving payment is genuinely disadvantaged by direct credit. Temporary exemption from direct credit may also be granted at the Commission's discretion.More ?