How an Activity Based Payment is executed
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As the client, you take up a Temporary Loan and owe an outstanding amount of R1 500 (within the 31-day repayment period)
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You receive a credit / deposit of R2 000 in your Transactional Account at 10:00
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You have a scheduled payment set up for R1 000 on the same day as you receive the R2 000 deposit
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From the R2 000 deposit, the scheduled payment of R1 000 will be paid first (this is the same process for all standing orders, for example, a Debit Order)
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The client has full control over the Activity Based Payment (payment instruction) to delete, temporarily stop, reactivate or maintain
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If there are no other payments in line with the hierarchy, the remaining R1 000 from the R2 000 deposit will be used to pay towards your Temporary Loan on the same day it is received
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Your outstanding balance will now be R1 500 - R1 000 = R500
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The same process will be followed throughout the 31-day repayment period, until the Temporary Loan has been settled
