Abstract:
The evolution of various payment instruments shows a marked inclination away from the reliance on physical currency. This has, in turn, led to the construction of new manifestations of wealth. Due to revolution and developments of technology, payment can be made by various means such as physical delivery of conventional money (coins and bank notes) from the payer to the payee, but may also be made through tangible paying methods other than negotiable instruments such as debit or credit card or by way of electronic funds transfer.
The development of payment systems makes it a reality for consumers to choose their preferred method of payment suitable for their banking needs and circumstances. Electronic funds transfer is a generic term that embraces any transfer of funds in which electronic techniques replace one or more of the steps in the process that were previously done by paper-based techniques. This includes automated teller machines, the transfer of funds at the point of sale, direct deposit or withdrawal of funds and funds initiated by telephone.
The use of electronic funds transfer systems is described as the ultimate act of payment for not only is the value which is transferred reduced to a symbolic form, but the symbolic form itself is removed from the immediate possession of the parties to the transfer, payment also essentially becomes the transfer of information. Electronic funds transfer are easy and convenient to use. However, new technology has not only provided an ever-increasing range of electronic payment products, it has also had far-reaching effects on the way in which banks operate.
Owing to the lack of legislation in South Africa to regulate the use of electronic funds transfer, banks rely on the law of contract and mandate to exempt themselves from liability. Therefore, the research problem that this dissertation aims to address revolves around the legal implications of electronic funds transfer, This includes the
questions surrounding reversal and recovery of electronic funds transfer when payment is considered to be final and complete. Ultimately, I will attempt to address apportionment of liability between banks and consumers.
