E-mandate is a digital authorization allowing a bank to automatically deduct money from a customer's account regularly.
An e-mandate is a cardholder's consent that enables issuing banks to process recurring payments. For transactions like Neeto subscriptions, an e-mandate is necessary for successful processing.
It must be registered and authenticated using additional factor authentication (AFA), such as 3D Secure (3DS). In compliance with Reserve Bank of India (RBI) guidelines, an e-mandate is required for recurring payments. RBI's e-mandate requirements for issuers and card networks are discussed in this article. These measures include:
Banks must register cardholders and establish an e-mandate through a one-time process using additional factor authentication (AFA), such as 3D Secure.
Recurring transactions exceeding INR 15,000 (or the equivalent in other currencies) require AFA for each payment.
Cardholders must be notified at least 24 hours before a charge occurs and have the option to opt out of the transaction.
How does Neeto handle e-mandates?
We use Lemon Squeezy as a Merchant of Record (MOR) to manage billing and subscriptions. If you're an Indian customer, you will receive an email to confirm your payment during your first auto-debit attempt (your second Neeto subscription payment). By confirming the payment, the e-mandate will be set up, allowing future payments to be automatically deducted from your card on the billing date.