Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Get in touch
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Greenbacks
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Explore Bank
- Accounts
- Everyday banking
- Kids accounts
- Youth banking
- Seniors accounts
- Private Clients
- Private Wealth
- Digital wallet
- See all accounts
- Premium banking
- Get help choosing
- Goal saving
- Family Banking
- Foreign nationals
- FAQ
- How-to guides
- Discontinued accounts
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Kids accounts
- MiGoals4Kids
- Youth banking
- MiGoals Premium
- MiGoals
- MiGoals Plus
- Seniors accounts
- MiGoals Premium Senior
- MiGoals Plus
- Private Clients
- Pay-as-you-use
- Young Professionals
- Private Bundle and Private One
- Private Wealth
- Private Wealth Bundle
- Digital wallet
- MobiMoney
- American Express
- Amex Gold
- Amex Platinum
- Greenbacks
- Exclusive discounts
- FAQ
- How-to guides
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Explore Borrow
- Personal loans
- Loan consolidation
- Personal loans
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Loan consolidation
- Personal loans
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Buy
- Build
- Switch
- Manage
- Further lending
- Explore home loans
- Request a call back
- Track application
- FAQ
- How to guides
- Buy
- Explore buy
- First time home buyer
- Repeat buyer
- Renewable energy financing
- HomeVision
- Home-buying Toolkit
- Edge properties
- Repossessed properties
- Switch
- Explore switch
- Further lending
- Explore further lending
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- We have payment solutions to get you back on track
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- We have payment solutions to get you back on track
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Business cover
- Secure investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Alternative energy insurance
- Legal expenses | Nedbank Insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Alternative energy insurance
- Legal expenses | Nedbank Insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Business cover
- Secure investments
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- A financial adviser can help you plan your future
- Everything you need to know about student loans
- A financial adviser can help you plan your future
- Everything you need to know about student loans
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
The difference between warranties and guarantees
Whether you’re buying or selling products or services, customer satisfaction is key.
Many big-ticket items are sold with a guarantee and/or a warranty, so that the customer can get the item repaired or replaced at no extra charge if it turns out to be defective in some way. Vehicles are also commonly sold with a product warranty to cover certain maintenance and other costs for a specified period.
But what’s the difference between a warranty and a guarantee? How do they relate to the rights of the buyer and the responsibilities of the seller?
Warranties and guarantees: Key differentiators
Both a warranty and a guarantee are promises to customers. Both are ways for the manufacturer or seller to reassure buyers that if a product or service does not work as it should, they’ll offer a refund, replacement or repair.
- A warranty is a formal, written, contractual guarantee that undertakes to repair or replace a product that develops a fault or defect during normal use. Warranties are usually more legally binding because they are contractual. A warranty is valid for a specified period only.
- A guarantee is a less formal – sometimes even verbal – promise that the product will perform as intended and can be returned for a refund if it doesn’t.
Most products come with some form of guarantee that it will perform as expected, but warranties are often an additional feature that comes with an additional cost. They act as a kind of insurance policy that compel manufacturers to repair or replace faulty goods, depending on the stipulations of the warranty.
The differences are quite clear when you consider motor vehicles. It’s impossible to offer a guarantee on a used car, because a car has too many parts that are subject to normal wear and tear for this to be reasonable. A warranty on a used car, on the other hand, acts more like an additional insurance policy – specific parts of the car can be insured under warranty at a set cost.
Offering guarantees as a small business improves your credibility and reliability as a service provider, which can help you compete
Guarantees vs warranties: Know your legal rights
Guarantees
- Are commitments by manufacturers or retailers.
- Apply to products and services.
- May or may not be a condition of sale.
- Can be verbal or written.
- Come at no extra cost.
- Have no term of validity.
- Entitle you to money back in case of default.
Warranties
- Are applicable only to products.
- Are a condition of sale.
- Are usually in written form.
- Sometimes come at a cost to the buyer.
- Apply for a specified length of time.
- Do not offer money back in the event of default.
Warranties provide better legal cover for claims on defective products but be aware of the conditions that may come with them. As with any insurance policy, extended warranties will often have restrictions. A warranty on a vehicle, for example, might stipulate that repairs are made with authorised replacement parts by selected service providers.
Small businesses can offer client warranties and guarantees
If you’re a small-business owner looking to offer your customers warranties or guarantees, here are some options:
- A full refund, minus shipping costs (when applicable).
- Free replacement of defective products.
- A price guarantee that offers to refund the difference if a customer finds the same product at a lower price elsewhere.
Offering guarantees as a small business improves your credibility and reliability as a service provider, which can help you compete against larger retailers. In some cases, for example if you have an online business that ships goods to customers, there may be a legal requirement to offer certain guarantees on replacement or return of goods. Make sure you are aware of whatever these legal obligations might be when setting up your business.
