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:

  1. 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.
  2. 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.
  3. Any modification in or withdrawal of an existing e-mandate would entail AFA validation by the issuer.
  4. 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.
  5. The issuer would also need to send a post-transaction notification to the cardholder with details similar to the abovementioned.
  6. In respect of withdrawn e-mandate(s), the acquirers would need to ensure that the merchants onboarded by them, delete all details, including payment instrument information.