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Recurring payment<\/strong><\/a> is a method of performing\u00a0transactions that occur on a regular basis, at a set interval, such as monthly or annually. The amount for these transactions can be pre-determined or variable, as per the type of service the business provides.<\/p>\n Subscription-based services, utility bills, loan repayments & insurance premiums are common examples of recurring payments.<\/p>\n Recurring payment systems offer various advantages, including convenience, predictability, & cost savings, making them an essential part of personal & business financial management.<\/p>\n Automating plays an important role on this front, offering both the business & the customers several advantages. With automation, repeating payments are made automatically without the payer’s intervention each time a payment is due.<\/p>\n Recurring payment comes in many forms, from monthly subscriptions to rent payments and loan installments. Broadly, there are two types of recurring payment models:<\/p>\n This type of recurring payment typically applies to subscription payment models like magazine subscriptions & OTT platform\/streaming service subscriptions that usually work on a monthly subscription payment system, gym memberships, professional association memberships, etc.<\/p>\n The amount billed differs with each cycle, and the payment due is determined by the cost of services or products. Variable recurring payments are commonly used in pay-per-use payment models like SaaS payments and utility bills.<\/p>\n Recurring payment has become commonplace in everyday scenarios, from subscription services to utility bill payments, owing to the convenience & efficiency they offer. Some common examples of recurring payments we come across on a day-to-day basis include the following:<\/p>\n Recurring payment is an essential facet of many businesses, and several methods exist for accepting these payments. Some of the most common methods used by companies to accept payments that are periodic in nature are:<\/p>\n Electronic Mandate enables businesses to automate recurring payments, saving time & money on administrative costs. e-Mandate can help enterprises to increase customer retention & cash flow by providing a simple & convenient way for customers to authorize recurring payments.<\/p>\n e-Mandate<\/strong> <\/a>is a powerful tool for businesses looking to improve their customer experience and streamline their payment collection process. NPCI<\/a><\/strong> indicates that the volume of transactions of NACH debits in January 2023<\/a> alone, is over 100 million. It is because e Mandates are fast, secure & reliable payment collection systems that simplify the process for businesses multifold.<\/p>\n With eMandate solutions like Melento (Formerly SignDesk) that provide a secure & dependable platform for managing recurring payments, businesses can lower the risk of fraud & offer smooth customer journeys.<\/p>\n eMandates enable businesses to offer their customers an easy & seamless payment experience. Depending on their requirements, businesses can choose from the following types of mandates for efficient collection of payments that are periodic in nature.<\/p>\n 1. Aadhaar-Based eMandate<\/strong><\/p>\n These mandates are registered using Aadhaar OTP authentication. The customer enters their registration information on the e-mandate provider’s portal & agrees to link their Aadhaar details.<\/p>\n The customer’s Aadhaar-registered mobile number is then sent an OTP, which is then used to authenticate the information provided by the customer.<\/p>\n Following authentication, the mandate details are sent to NPCI, the customer’s destination bank, and back to the e-mandate provider, who displays the status of the Aadhaar mandate to both the customer & the destination bank.<\/p>\n 2. API eMandate<\/strong><\/p>\n This type of mandate allows customers to authorize recurring payments in real-time & businesses can integrate this recurring payment collection process directly into their website or app.<\/p>\n With API eMandate, data is collected automatically by the e-Mandate provider & shared with the NPCI ONMAGS portal. The mandate details are then sent to the customer’s destination bank for confirmation, & once received, the customer is redirected to the destination bank, where they enter their debit card or net-banking information to authenticate the mandate.<\/p>\n 3. Physical Mandates<\/strong><\/p>\n A physical mandate is a method of authorizing recurring payments in which the customer signs a paper document, typically a form or a letter, authorizing the business to debit recurring payments from their bank account.<\/p>\n In this option, the customer fills out a form with their mandate information. This form is then submitted to the customer’s destination bank. E-mandate service providers use OCR-based document scanning to read data from mandate forms and send it to the NPCI and the destination bank for verification. Once the details are verified, the mandate is registered.<\/p>\n Automating recurring payment hosts several advantages, & simplifies & streamlines the periodic debit & payment collection processes. Recurring payment automation saves time, reduces costs, and improves cash flow management by automating regular transactions.<\/p>\n Recurring payment automation, particularly through eMandates, has become increasingly popular over the years, offering significant benefits to both individuals & businesses.<\/p>\n Managing high volumes of recurring payments with different pricing models is often challenging for most businesses. Implementing the best practices to manage periodic payments helps businesses process them efficiently. Following the below practices helps organizations minimize the risk of processing errors, payment delays, and disputes.<\/p>\n Best Business Practices For Efficient Recurring Payment Management<\/p><\/div>\n Automating repeating payments helps provide businesses & customers with a hassle-free payment experience.<\/p>\nAn Overview Of the Different Forms of Recurring Payment<\/strong><\/span><\/h2>\n
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Common Use Cases For a Recurring Payment<\/strong><\/span><\/h2>\n
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How Do Businesses Accept Periodic Payments?<\/strong><\/span><\/h2>\n
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Why Should Businesses Use eMandates For Payment Collection?<\/strong><\/span><\/h2>\n
Different eMandate Types<\/strong><\/span><\/h2>\n
The Advantages Of Automating a Recurring Payment<\/strong><\/span><\/h2>\n
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Best Business Practices For Efficient Recurring Payment Management<\/strong><\/span><\/h2>\n
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Switch to Seamless Payment Collection With Melento (Formerly SignDesk) eNach<\/strong><\/span><\/h2>\n