RBI New Mandate for Auto-Payment
RBI has introduced new mandate to safeguard the Credit and Debit Card holder for autopayment transaction done from Credit and Debit Card for Subscription Based Services and Monthly Bill Payment Plan.
1) Now the Merchant Can't directly charger the Card, RBI has now asked banks to send a pre-debit notification to their credit card users 24 hours before an actual debit to the credit card .Also, on receipt of the pre-transaction notification, the cardholder should have the facility to opt-out of that particular transaction or the e-mandate.
2) During the registration process, the cardholder should be given an option to provide e-mandate for either a pre-specified fixed value of recurring transaction or for a variable value of the recurring transaction. In case of the latter, the cardholder will provide a maximum value of the recurring transaction and this has been capped at Rs 2,000 per transaction by the RBI.
3)Among other guidelines, the issuer will have to provide the cardholder an online facility to withdraw any e-mandate at any point of time, following which no further recurring transactions should be allowed for the withdrawn e-mandate.
This will help cardholder to control his e-mandate at any point of time, if he wants to opt out from the service but again this is going to create an additional burden on part of customer to approve the request for auto-payments which will make auto-payment facility more inconvenient.
#cards #creditcard #fraudprevention #rbimandate #rbipolicy
#cardpayments #cardprocessing #visionplus #debitcards #recurringpayments
#payments #paymentprocessing