South Africa store credit decision template

Build and run automated credit decisions in Decisimo for South African store cards and furniture accounts, from new accounts to every limit change. The stages follow the decision order, and the rules copy into a decision table.

Credit decision stages

The stages run in this order inside one decision. Each outcome keeps its reason.

Stage	Checks	Source
Product	The account is set as a credit facility for a store card or other credit for a furniture account, which sets the applicable caps.	NCA s.8; Reg 42
Identity	The decision checks identity and fraud for applications made at the till or online.	FIC Act s.21; NCA s.90(2)(l)
Credit risk	For a new account, the decision checks the bureau report and declines consumers under debt review, with an adverse listing or with a judgment.	NCA s.80, s.81, s.88
Affordability	The Reg 23A assessment applies to new accounts and requested limit increases, with unilateral increases outside its scope.	Reg 23A
Limit	An offered limit increase takes effect after the consumer accepts it, and an unanswered offer leaves the limit unchanged.	NCA s.74, s.119(4)
Exposure	The decision checks the rate, initiation fee, monthly service fee and credit life premium against the caps for a credit facility or other credit.	Reg 42; Reg 44; Credit Life Insurance Regulations 2017
Outcome	On request, it gives the written dominant reason for a decline, a limit below the amount applied for or a refused increase, names the bureau when its report drove it, and enables representations to a person.	NCA s.62; POPIA s.71
Marketing	The decision allows marketing without fresh consent only for similar products, with an opt-out in every message.	POPIA s.69(3)

Rules as decision table cells

Each table copies as cells to paste into a decision table, with one column per attribute. Attribute paths are examples to rename to your own data.

Store card and furniture account caps

Store cards use repo +14% yearly, furniture accounts repo +17%, with R165 plus 10% above R1,050 or R1,000 respectively, capped at R1,050, R60 monthly service and R4.50 per R1,000 credit life.

`account.type` Condition	`product.credit_type` Result	`cap.rate_over_repo` Result	`cap.fee_base` Result	`cap.fee_above` Result	`cap.fee_max` Result	`cap.service_fee` Result	`cap.credit_life_per_1000` Result
`=store_card`	`credit_facility`	`14`	`165`	`1050`	`1050`	`60`	`4.5`
`=furniture_account`	`other`	`17`	`165`	`1000`	`1050`	`60`	`4.5`

Limit request rules

A new account and a requested increase go through Reg 23A, and a unilateral increase takes effect after acceptance, falls outside Reg 23A and otherwise leaves the limit unchanged.

`limit.request` Condition	`consumer.accepted_increase` Condition	`limit.next_step` Result	`affordability.reg_23a` Result
`=new_account`	`*`	`assess`	`true`
`=increase_requested`	`*`	`assess`	`true`
`=increase_unilateral`	`=true`	`assess`	`false`
`=increase_unilateral`	`*`	`keep_limit`	`false`

New account decline rules

The table declines a new account for a consumer under debt review, with an adverse listing or with a judgment, and names the bureau as the reason source.

`bureau.debt_review` Condition	`bureau.adverse_listing` Condition	`bureau.judgment` Condition	`decision.outcome` Result	`decision.reason` Result	`decision.reason_from_bureau` Result
`=true`	`*`	`*`	`decline`	`debt_review`	`true`
`*`	`=true`	`*`	`decline`	`adverse_listing`	`true`
`*`	`*`	`=true`	`decline`	`judgment`	`true`
`*`	`*`	`*`	`continue`		`false`

Outcomes with a dominant reason

The table marks a decline, a lower limit than applied for and a refused limit increase for a s.62 dominant reason.

`decision.outcome` Condition	`decision.reason_required` Result
`=decline`	`true`
`=lower_limit`	`true`
`=increase_refused`	`true`
`*`	`false`

Marketing to store customers

The table allows marketing without new consent only for a product like the ones the customer holds and when they have not opted out.

`offer.like_products_held` Condition	`customer.opted_out` Condition	`marketing.may_send` Result
`=true`	`=false`	`true`
`*`	`*`	`false`

Using the template

The template is a reading of the National Credit Act, its regulations and POPIA for building one decision. The lender’s legal team checks it against the current text before use.

The Reg 23A assessment, including the expense norms, is in the template for short-term and unsecured loans. The tables here cover what store credit adds.

Use the NCA affordability calculator for the Reg 23A expense norms for one consumer, and see the short-term and unsecured loan template.

See the payroll or developmental loan template.

NCA credit types

Each page below gives one credit type’s definition under the National Credit Regulations, its caps and the caps as decision table cells.

Questions we get asked

Can a store raise a store card limit if the customer has not agreed?

s.74 bars a limit increase that takes effect unless the consumer declines it. A unilateral increase is addressed by s.119(4).

Does Reg 23A apply to a credit limit increase?

Reg 23A applies to a new account and a limit increase the consumer requests. A unilateral increase is outside Reg 23A.

What is the maximum interest rate on a store card in South Africa?

A store card is a credit facility, with a maximum rate of the repo rate plus 14% a year. A furniture account is other credit, with a maximum rate of the repo rate plus 17%.

Can a store send credit offers to existing customers?

POPIA s.69(3) allows marketing to existing customers without fresh consent for similar products. Every message must include an opt-out.