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December 26, 2025Paying your employees and suppliers on time is one of the most important aspects of running a successful business in South Africa. It keeps your operations smooth, builds trust with your staff, protects your reputation with suppliers and partners, and helps you stay in compliance with local regulations. But it’s how you pay your employees or suppliers that makes the biggest difference.
You have the option to choose between dated (also known as “future-dated” or “scheduled”) and same-day payments. Both methods are reliable, but they serve slightly different purposes.
Understanding how they work helps you make the right call for your business, whether you’re running monthly payroll or paying suppliers. That’s where this guide comes in. It highlights the key differences between how they work, when to use them, and how to monitor the results.
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What are dated payments?
A dated payment is a one-time or recurring transfer of funds scheduled to be processed on a specific date in the future. This method of payment lets you schedule an upcoming transaction so it happens automatically, without requiring any further action from you.
It’s a simple way to plan ahead. You don’t have to worry about logging in on payday or keeping track of supplier due dates. Everything happens automatically on the date you’ve chosen.
The dated method works best for predictable or recurring transactions, such as salary payments or monthly supplier invoices. You stay in control of your cash flow while giving your customers, creditors, or suppliers the confidence that the money due to them will arrive right on time.
How future-dated payments work in South Africa
In South Africa, dated payments are processed through the country’s electronic payment systems, like Electronic Funds Transfers (EFTs) or stop orders. The latter is when you give your bank an explicit instruction to make a series of recurring, future-dated payments on your behalf.
On that date, the bank processes your payment and ensures the funds reflect in the recipient’s account. This is known as value dating; it’s the banking mechanism that guarantees payments land exactly on the date you selected, not earlier or later.
You can schedule payments days or even weeks in advance. That flexibility helps you manage the business’s payroll cycles, supplier agreements, and cash flow planning with confidence.
When to use dated payments for payroll or suppliers
Dated payments are ideal when your payment amounts and dates are predictable. For payroll, you can use stop orders to process salaries and know your employees will be paid on payday.
For suppliers or creditors, future-dated payments are useful when you’ve agreed on fixed payment terms, for example, you’ve settled on the 25th of every month or 30 days after invoice. You can upload and approve your payment file early and let the system take care of the rest.
This method is perfect for organised businesses that prefer to plan ahead rather than rush at the last minute. It also lowers the risk of having missed or delayed payments, which can damage relationships with suppliers or employees or cause unnecessary admin for your staff.
What is a same-day payment?
A same-day payment allows you to send funds that reflect in the recipient’s account on the same business day. It’s fast, flexible, and ideal for situations where timing is critical. Some examples of this service include Instant EFTs, PayShap, and Real-Time Clearing (RTC).
Unlike scheduled payments, same-day transfers are processed in real time within set banking windows. Once approved, the payment moves through the system immediately, and your supplier, creditor, or staff member usually receives the funds within a few hours.
Same-day payments work well for one-off or urgent payouts, such as a supplier that needs clearing before delivering stock, or a contractor waiting for a project milestone payment.
How same-day payments are processed
When you make a same-day payment before the bank’s cut-off time, it goes into the next processing cycle. Payments made after the cut-off are processed on the next business day.
In South Africa, some same-day payments like traditional EFTs are limited to business days: that’s Monday to Friday, excluding weekends and public holidays. Keep that in mind when making payments. For more immediate transactions, opt for PayShap, RTCs, or EFTs via Ozow.
A standout feature of the same-day method is its speed. You can make last-minute payments should the need arise or fix a missed salary payment, without waiting for the next day’s batch.
When should you choose same-day payments for payroll or suppliers?
When time is critical, same-day payments make the most sense. If a payment deadline was missed or you need to handle a once-off bonus, this way gets money where it needs to go fast.
For payroll, same-day transactions are helpful when correcting errors or paying new hires outside your regular pay run. When it comes to suppliers, the payment method can help maintain trust and avoid service interruptions when an invoice needs to be settled urgently.
It’s worth noting that same-day payments often come with higher processing costs than dated transactions, as they offer premium speed and the convenience of instant confirmation. That’s why it’s smart to use them only when necessary. For regular payments, dated transfers remain the more cost-effective and efficient choice.
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Payroll best practices
Your employees rely on (and appreciate) consistent, timely payments. Whether you use dated or same-day transfers, the goal is to ensure salaries reach their accounts on time, every time.
Payroll can be effectively managed with scheduled payments, which are often predetermined and recurring, but there is a place for same-day salary payments in SA when the need arises.
Here are some best practices for dated and same-day payments to ensure smooth salary runs:
Best practices for future-dated (or scheduled) payments
- Always schedule salary runs in advance to avoid last-minute errors.
- Double-check employee bank account details before submission.
- Align payment dates with business days to ensure funds land on payday.
- Prepare recurring payments for the same date each month to streamline payroll.
- Use verification tools to prevent failed payments or rejections.
Best practices for same-day payments
- Reserve for urgent corrections or one-off payments, such as missed salaries or bonuses.
- Ensure authorisation is completed before the bank’s cut-off time.
- Confirm account details are correct to prevent rejections.
- Track same-day payments immediately to verify funds reach employee accounts.
- Limit use to exceptions to avoid higher processing costs.
A playbook for supplier runs
Both dated and same-day payment methods are effective ways to pay suppliers or creditors. The choice depends on the situation. If you’re paying a creditor for a service like a long-term loan, then using the scheduled payment method will be the most practical option for you.
For irregular payments to one-time suppliers or contractors, the same-day method will be your best bet. This option ensures transactions are cleared in real-time, helping your business avoid delays or operational interruptions. That said, there are some practical guidelines to follow.
These steps will help you manage supplier payments with dated and same-day payments.
- Organise your supplier list: Group suppliers by payment terms, urgency, and frequency.
- Schedule dated payments: For regular invoices, set payments in advance on agreed dates to maintain a predictable cash flow.
- Verify account details: Use tools such as the Account Verification Service (AVS) to confirm supplier bank information before processing.
- Run same-day payments or RTC for urgent invoices: Handle last-minute, unexpected, or one-off supplier and creditor payments to avoid delays or service interruptions.
- Batch payments efficiently: Combine multiple invoices into one dated payment run to reduce administrative work.
- Track and confirm: Ensure all payments, both dated and same-day, are successfully processed and received.
- Review and adjust: After each cycle, reconcile payments and adjust future runs based on cash flow or supplier feedback.
Account Verification Service (AVS) explainer
Account Verification Service, or AVS, is a tool that verifies whether a bank account belongs to the person or business you’re paying. It confirms that the name and account number that you supply (or fill in) match those stored on the bank’s database before the payment goes out.
This might sound simple, but it’s one of the most effective ways to reduce payment errors and fraud. If account details are wrong, the payment won’t go through, and you’ll have to reverse it later. That wastes time and money, and can cause frustration for the recipient awaiting funds.
By using AVS, you ensure that every payment, be it a salary or a supplier payment, goes to the right place the first time. It’s a preventative step that protects your business and your reputation.
How AVS works
Before your payment batch is processed, the system checks each account’s details against the records held by the receiving bank. If something doesn’t match, the transaction is flagged so you can either correct it or abandon the transaction entirely.
AVS runs quietly in the background and doesn’t delay your payment process. It simply verifies that the account is valid and active. This validation helps catch errors before money leaves your account, reducing rejections and failed transfers.
It’s especially valuable during payroll or when onboarding new suppliers, where typing mistakes can easily slip through. AVS helps you ensure data is accurate and payments won’t bounce.
Benefits of using AVS
Here are a few benefits of using AVS to confirm recipient details as an SME in South Africa:
- Fewer payment errors: AVS verifies that the account belongs to the correct recipient, reducing failed or rejected payments.
- Time saving: You spend less time correcting bounced payments and following up with your employees or suppliers.
- Improved accuracy: It verifies that bank account numbers, branch codes, and account holder names are correct before releasing funds.
- Fraud prevention: AVS confirms the legitimacy of recipients, helping protect your business from fraudulent accounts or scams.
- Reliable payroll: It guarantees that salaries reach your staff on payday without delays.
- Smooth supplier relations: AVS reduces disputes and late payments, strengthening trust with your suppliers and creditors.
- Better cash flow management: It minimises unexpected delays caused by rejected payments, giving you clearer visibility of your business’s finances.
- Peace of mind: You can process both dated and same-day payments with certainty, knowing that funds are going to the right accounts.
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Frequently Asked Questions
Ready to streamline supplier and salary payments in South Africa with Netcash?
Managing payments doesn’t have to be complicated. With Netcash, you can schedule dated payments for predictable expenses and handle same-day transfers when you need fast results.
Both methods play an important role in ensuring salaries and suppliers are paid on time, so it’s not about choosing between the two. An innovative business takes advantage of both methods, scheduling for fixed expenses and using same-day payments for unforeseen emergencies.
With Netcash, you’ll rest assured that your payments are handled correctly, whether you’re paying employees or suppliers. Our payment solutions are secure, reliable, and flexible.
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Author:
Paul Adant
Business Solutions Manager
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Paul has over 30 years experience in banking and the payment industry, he has a passion for translating needs into effective solutions. Cultivating strategic partnerships with integrated software vendors and producing cost effective, efficient and time saving business solutions make him a valuable member of the team at Netcash.
