Cards, e-Nach, e-Mandate

Standing Instruction (SI) on cards

Recurring Payments don’t require Customer permission for the transaction and are processed without CVV and 2nd-factor authentication. This results in a frictionless payment experience given the fact that the consumer has already provided his/her consent for allowing the merchant to charge his card regularly.

Since recurring payments don’t have 2nd-factor authentication, there are strict guidelines around offering the same to consumers by RBI as stated below – The first transaction must go through a standard 2FA flow where consumer’s consent for further recurring payments needs to be taken by Merchant. Once consent is taken then the merchant can use S2S APIs of Juspay to charge consumers over a recurring basis going forward without 2FA.

Recurring payments through Cards

Consumer lands on the merchant website and proceeds for payment. Merchant presents an option to sign up for a recurring platform where the consumer needs to provide his/her consent. Billing frequency can be Adhoc (no fixed cycle) (meaning cards will be charged whenever Merchant calls the API or at fixed intervals say every month or year whenever Merchant calls the API). Once the consumer validates the subscription plan and enters preferred card details, the consumer is redirected to OTP Page where the authentication and authorization process is taken place. After the transaction is successful and Mandate is set on the card, Juspay gives the response with additional parameters like Mandate_status= Active or failure, Mandate ID, and Mandate_token. For the recurring transaction API calls which will be server to server and involve no customer interface on the payment page, the Merchant needs to pass the Mandate token as a parameter in the API to automatically charge the customer’s card for future transactions.

We Support Card Standing Instruction with

1. PayU,
2. Razorpay,
3. TPSL(Ingenico)
4. PAYTM and
5. Billdesk

The merchant should call the card-info API of Juspay to check if the card is eligible for card mandate.

Recurring payments through e-Mandate and e-NACH

Net Banking recurring like cards are processed seamlessly without customer’s intervention without any 2nd-factor authentication. There are 2 common terms when it comes to Net Banking recurring – e-Mandate and e-NACH.

Juspay has Netbanking SI through TPSL(Ingenico) and Razorpay. Integration of NB SI with PayU is ongoing. (E-mandate and E-nach integration are not separate with gateways, they just have an amount check for the 1st-time transaction)

In the E-Mandate mode:

For the first transaction, the order amount would be deducted and settled, while also setting up the mandate instantaneously. For the first transaction, extra params are taken on the payment page like Account Number, Ifsc Code, Bank Name, and beneficiary name. We will collect the data while managing the payment page. After the transaction is successful and Mandate is set on the Net Banking, Juspay gives the response with additional parameters like Mandate_status= Active or failure, Mandate ID, and Mandate_token. For the recurring transaction API calls which will be server to server and involve no customer interface on the payment page, the Merchant needs to pass the Mandate token as a parameter in the API to automatically charge the customer’s Net Banking bank for future transactions. This flow does not go via the NPCI route and the mandate is set directly with the bank.

Currently, E-Mandate on Net banking is live through HDFC bank and ICICI bank via TPSL(Ingenico) and Razorpay. Merchants will have to take special permission from Gateway to enable this flow.

Axis Bank and SBI Bank also have the direct flow without NPCI through Ingenico, but the amount will not be deducted in the first transaction, only mandate will be set just like E-nach flow. The only difference between this flow and E-Nach flow is this flow doesn’t go via NPCI, E-Nach flow goes via NPCI.

In the E-Nach mode:

For the first transaction, a penny amount transaction of Rs 1 or Rs 2 would be done, while also setting up the mandate. The amount won’t be deducted from the customer account or settled with the merchant. This is just for verification. Verification of the Bank account is done by entering the login ID and password on NB bank Page. These details then go to NPCI for verification. The mandate may be set instantaneously or up to T+2 days. Merchant will be notified through a webhook. For the first transaction, extra params are taken on the payment page like Account Number, Ifsc Code, Bank Name, and beneficiary name. We will collect the data while managing the payment page. After the transaction is successful and Mandate is set on the Net Banking, Juspay gives the response with additional parameters like Mandate_status= Active or failure, Mandate ID, and Mandate_token. For the recurring transaction API calls which will be server to server and involve no customer interface on the payment page, the Merchant needs to pass the Mandate token as a parameter in the API to automatically charge the customer’s card for future transactions.

Currently, Juspay has E-Nach integration with TPSL and Razorpay. PayU is under integration. Below is an exhaustive list of banks supporting E-Nach. Most gateways will have the top 15-20 banks under E-Nach.

1. State Bank Of India
2. HDFC Bank
3. ICICI Bank
4. Axis Bank
5. Bank OF Baroda
6. Kotak Mahindra Bank
7. Punjab National Bank
8. YES Bank
9. City Union Bank
10. IndusInd Bank
11. IDFC Bank
12. Central Bank of India
13. IDBI First Bank
14. Tamilnad Mercantile Bank
15. Indian Overseas Bank
16. RBL Bank
17. Bank of Maharashtra
18. Deutsch Bank
19. Paytm Payments Bank
20. Ujjivan Small Finance Bank
21. Equitas Small Finance Bank
22. Federal Bank
23. Oriental Bank Of Commerce
24. Andhra Bank
25. United Bank Of India
26. Standard Chartered Bank
27. Canara Bank
28. Karnataka Bank
29. Citi Bank
30. South Indian Bank
31. AU Small Finance Bank Ltd
32. Union Bank Of India