GIRO Errors: Rare but Costly for Singapore Consumers

SINGAPORE-Parents using GIRO to pay monthly fees at Little Professors Learning Centre were shocked by duplicate and inflated charges. One mother billed S$30 was debited S$196.80 three times.

The Consumers Association of Singapore (CASE) logged 10 complaints about unauthorized GIRO deductions between January last year and March this year.

Launched in 1984, GIRO is a three-party system linking consumers, banks, and billing entities like utilities or schools. Once authorized, billing organizations submit debit requests directly through the clearing system-banks execute without further customer approval.

Experts stress that errors are rare. But when they occur, the fault typically lies with the billing organization’s systems, not the bank. "If the billing org sends two requests or the wrong amount, the bank simply follows instructions," said Associate Professor Tan Chong Hui of the Singapore University of Social Sciences.

National University of Singapore’s Professor Sumit Agarwal added that while most issues are minor, malpractice can’t be ruled out without investigation.