Overview
1. Introduction
Standing instructions payments that are recurring/ subscription based can be seamlessly offered across permitted payment methods in a flexible and unified interface.
Recurring charges can be collected for certain scenarios such as insurance premiums, mutual fund SIPs, investments that involve monthly debit, subscription services.
2. Payment methods for Recurring Payments
Recurring Payments can be set-up using the below payment methods:
UPICompatible with UPI id (VPA) , in-app redirection (intent flow) or through a UPI QR code on all leading UPI PSP apps.
CardsAvailable on leading Credit and Debit Card issuers in India across Visa, Mastercard, American Express, Diners & RuPay networks.
e-NACHe-NACH is a convenient way to set up payment collections using a bank account for transactions upto ₹ 1 Crore using Net Banking or Debit Card based authentication
3. Steps Involved in Recurring Payments
Recurring Payments follow a certain prescribed process. This section summarizes the various steps involved.
Step 1: Registration of a Mandate (e-Mandate)
The first step is the registration of an e-Mandate. Every e-Mandate which is set-up must be authorized by the customer who is opting for the service. Registration of an e-Mandate through a one-time process. The following are required to be captured in this registration:
- Frequency of debit
- Amount type - Fixed or Variable (variable to be set in a scenario where in the e-Mandate charges increase in future charge)
- Amount
- Validity of the e-Mandate
- Payment method
Step 2: Intimate the customer before a recurring transaction
As per regulatory guidelines, the customers must be intimated with a Pre-Debit Notification (PDN) at least 24 hours before all recurring transactions are affected. At this step, an "Invoice" must be created which corresponds to the recurring transaction. The PDN contains:
- Details of the subscription
- Debit date
- Amount
- Payment method
BillDesk's Recurring Payments Suite comes with an API to which handles both Invoice Creation and initiation of the PDN.
Transaction Limits
- No AFA - Recurring Transactions for an amount upto ₹15,000 do not require the customer to authorize the transaction with an additional factor of authentication (AFA) and the debit from the customers account is seamless.
- AFA Required - e-Mandate executions for amounts over ₹15,000 need to be authorized by the customer through an Additional Factor of Authentication (AFA) before every debit.
Payment methods and PDN flowsA PDN needs to be triggered for Recurring Transactions on Cards and UPI only.
Mandates set on e-NACH do not require a PDN
Step 3: Debit Customer's Account
Once step 2 is completed the customer's account/ payment instrument needs to be debited.
BillDesk's Recurring Payments Suite comes with an API to complete this step.
4. See also
Updated 6 months ago