Retail Payments
Recurring Mandate Solution – Hassle free payment experience
Recurring mandates set-up by customers with biller companies facilitates hassle-free payments without the need for the customers to remember and initiate the payments, by providing a one-time authorization to the biller company to initiate and debit based on the payment method selected by the customer. This also helps the consumers to effect timely payments as these are initiated by the billers based on the billing cycle and do not need additional authentication from the consumer. A majority of recurring mandate transactions are currently processed through Card-based payments.
In view of enhancing control in the hands of the consumers and to mitigate potential frauds, especially in low value transactions such as subscriptions, the Reserve Bank of India had formulated guidelines on the issuer bank maintaining the details of the mandate and providing the facility for the consumers to have prior notification of upcoming mandate payments and ability to manage (approve/ reject/ modify) such recurring payments.
The key challenges faced by banks/ billers/ intermediaries today in implementing the revised guideline can be attributed to the following reasons.
- Presently most of the mandates are set at the biller/ merchant end, with little/ no information at the issuer end
- Currently, the SI is set up with an initial authorization, followed by monthly automated debit to the card accounts. RBI has now mandated a provision to the consumer to modify/ stop such recurring payments. While the consumer can stop such recurring payment mandates, they do not have a facility to modify, especially from the issuer bank end
- Notification for recurring payments is sent by billers/merchants currently. Going forward, the issuer will need to send these notifications with complete details including merchant/biller name, amount, date of debit, etc.
Mindgate’s Recurring Mandate Solution aims to address these requirements by providing a flexible and comprehensive platform catering to the following needs of the banks.
- A Trigger Alert System to notify a customer via SMS, Email for 2FA for every auto-debit transaction before a due date
- Provide an option for individuals to accept, reject/stop recurring payments
- OTP based Authentication system for large value transactions (Above INR 5,000)
- Address pre-existing mandates as well as new mandate registrations
Key Capabilities and Benefits:
Mindgate’s Recurring Mandate Solution provides power to the issuer banks from having a facility to initiate a pre-debit notification to the consumers, to providing a facility to customers to manage and control the recurring mandates.
- Pre-debit notification engine
- Authorization portal for customers to manage the recurring mandates
- Facility to configure velocity limits – number of installments, full/ partial payments, fixed/ variable transaction amount limits
- 2FA support for change in mandates and for transactions in excess of INR 5,000/-
Benefits to the Bank
- Reduce operational overheads and automate the process for e-mandate transactions
- Record of recurring mandates and their approval/ rejections
- Single repository for all customer authentication and e-mandate management
- Supports both pre-existing and new e-mandate registrations
- Bill Payment just gets more secure and better to suit the needs of the customer.