Abstract
This dissertation examines the legal framework governing the reversal of credit transfers in South African banking law, a topic marked by significant uncertainty due to the absence of dedicated statutory regulation. Credit transfers are central to modern electronic payment systems, yet their finality and reversibility raise complex questions about ownership, consent, and remedies. Through a doctrinal analysis of case law—including Take & Save Trading CC v Standard Bank, Nissan South Africa (Pty) Ltd v Marnitz NO, and Nedbank Ltd v Pestana—the study explores the principles determining when a bank may reverse a credit entry without the beneficiary’s consent. It further considers the role of unjustified enrichment and the limitations imposed by defences such as reduced enrichment. The research highlights that while South African courts recognise exceptions to the general rule of irreversibility, these exceptions remain narrowly defined and inconsistently applied. The dissertation concludes that current reliance on common law and contractual terms is inadequate and recommends legislative intervention to provide clarity on valid and invalid transfers, permissible grounds for reversal, and procedural safeguards. It also proposes the development of a dedicated industry code to complement statutory reform, thereby promoting certainty, fairness, and consumer protection in electronic payment systems.