Annexure - Major Compliances for E-Mandates for Recurring Payments
E-mandates for processing recurring payments would need to comply with certain conditions, some of the major ones pointed out below:
- A cardholder desirous of opting for the e-mandate facility via a card should undertake a one-time registration process, with AFA validation by the issuer. If the first transaction is being performed along with the registration of e-mandate, then the AFA validation may be combined.
- During the registration process, the cardholder should be given an option to provide the e-mandate for either a pre-specified fixed value of recurring transaction or for a variable value of the recurring transactions. In the case of the latter, the cardholder shall clearly specify the maximum value of recurring transactions, subject to the prescribed limit per transaction.
- Any modification in or withdrawal of an existing e-mandate would entail AFA validation by the issuer.
- The issuer would need to send a pre-transaction notification to the cardholder, at least 24 hours prior to the actual charge / debit to the card for each successive transaction, informing the cardholder about the name of the merchant, transaction amount, date / time of debit, reference number of transaction/e-mandate, reason for debit, i.e., e-mandate registered by the cardholder. On receipt of the pre-transaction notification, the cardholder shall have the facility to optout of that particular transaction or the e-mandate.
- The issuer would also need to send a post-transaction notification to the cardholder with details similar to the abovementioned.
- In respect of withdrawn e-mandate(s), the acquirers would need to ensure that the merchants onboarded by them, delete all details, including payment instrument information.