Recurring collection from bank accounts.
WHAT A MANDATE IS
Standing permission to debit an account.
HOW IT IS ESTABLISHED
Through the scheme's mandate process, with the account holder authorising it.
WHAT IT ENABLES
Recurring collection without card details.
WHY THAT MATTERS LOCALLY
Card penetration is lower than account penetration.
WHAT TO RECORD
The mandate reference
What was authorised: amount, frequency, duration
When and how consent was given
WHAT LIMITS TYPICALLY APPLY
Maximum amount Frequency Validity period
WHAT HAPPENS ON FAILURE
The debit is declined, usually for insufficient funds.
WHAT TO DO
Retry on a defined schedule, and notify the customer.
WHAT TO NEVER DO
Retry repeatedly without notice.
WHAT CUSTOMERS MAY DO
Cancel the mandate directly with their institution.
WHAT THAT MEANS
Your system must handle collection stopping without notice to you.
WHAT TO BUILD
Detection of cancelled mandates, and a re-authorisation path.
WHAT TO COMMUNICATE
Before each collection, so it is not unexpected.
WHY
Unexpected debits generate disputes and complaints.
