E-Mandate on cards
Source: https://www.sc.com/in/bank-with-us/recurring-e-mandates/faqs/
E-mandate is signed by users when opting for a recurring payment via card to a online website/app.
There're RBI guidelines that banks and merchant has to follow.
Additional Factor Authentication, generally OTP, is required:
- on e-mandate registration
- if amount is greater than 15000 rs, (no OTP on amount less than 15k)
If user doesn't authorise this, for eg, if foreign site doesn't implement it, bank fails the transaction.
On bank side:
- bank has to give notification to users before deduction
- have a way to opt out of it
It is generally handled by payment gateways.
Questions
- How does this differ from e-mandate for SIPs NACH? #question
- How does this apply to UPI's autopay? #question