Recurring Payments with e-NACH & e-Mandate

What is e-Mandate (eNACH) and How Does it Work? Discover Its Advantages!

e-Mandate and eNACH sound similar, but they work differently. Both help with automatic payments, but:

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  eNACH : This is a system managed by a large organisation called NPCI and works with over 40 banks in India.

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  e-Mandate: This is offered by individual banks, currently only a few in India.

We'll start by explaining e-Mandate and how it can be helpful for your business.

What is e-Mandate meaning

e-Mandate is a secure way to set up automatic payments for things you buy regularly. It's like giving your bank permission to pay a company a certain amount of money every month so you don't have to remember to do it yourself.

Here's a breakdown:

Benefits:

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  Businesses Get paid on time without needing to chase payments.

• You:

  • Avoid late fees by never missing a payment.

  • Easily manage recurring payments online.

How it works:

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  You give your bank permission to automatically pay a specific company a set amount at regular intervals.

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  You can use your online banking or debit card to set up and manage e-mandates.

Who introduced it:

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  NPCI (National Payments Corporation of India) created an e-mandate to make recurring payments easier and faster.

• Remember: e-Mandate helps you avoid late fees and makes managing recurring payments a breeze!

Recurring payments: Explained

What are they?

Recurring payments are like setting up “auto-pay” for things you use regularly. You give permission for a company to automatically take money from your account at set times to cover the cost of their service.

Examples:

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  Subscriptions: Streaming services, music apps, online games

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  Bills: Phone, electricity, internet, gym memberships

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  Loans: Monthly loan payments (EMIs)

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  Investments : Automatic investments into mutual funds or stocks (SIPs)

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  Rent: Monthly housing or office rent

Benefits:

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  Convenience: No need to remember to pay each time.

• 

  Reliability: Ensures on-time payments for services you need.

• 

  Peace of mind: One less thing to worry about.

Remember:

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  You are always in control. You can cancel recurring payments at any time.

• 

  Be sure to understand what you're paying for before setting up a recurring payment. need.

e-Mandate registration: Setting up automatic payments (simple explanation)

What is e-Mandate?

Think of e-Mandate as a standing instruction to your bank. It allows companies to automatically collect payments from your account for things like subscriptions or investments.

How does it work?

• 1. You sign up to pay for something (insurance, investment) and choose e-Mandate as the payment method.

• 2. You fill in your bank details on the company's website.

• 3. The company checks if your bank is eligible.

• 4. You are directed to your bank's website to confirm the payment.

• 5. Your bank verifies your details and asks you to approve the e-mandate.

• 6. Once approved, the company can automatically collect your payments.

Benefits

• 

  Convenient: No need to remember payments or manually pay each time.

• 

  Fast: Confirmation usually takes just a few days.

• 

  Secure: Uses your bank's secure login process.

Overall, e-Mandate is a secure and convenient way to set up automatic payments.

What is ECS?

ECS stands for Electronic Clearing Service. It’s a system created by the Reserve Bank of India to allow bulk transfers of money between banks. Think of it like sending many payments at once instead of one by one.

How did ECS work?

Before e-mandates existed, people used ECS to set up automatic payments. This involved filling out a physical form and submitting it to your bank or the company receiving the payments.

Why was ECS not ideal?

While ECS was a good first step, it wasn’t very efficient. It relied on paperwork and manual checking, which could be slow and prone to errors.

What came after ECS?

E-mandates are the modern, online version of ECS. They are much faster, easier to use, and more secure.

e-Mandate vs. ECS Mandate: What’s the Difference?

e-Mandate is like a fast and easy way to set up automatic payments compared to ECS. Here’s why:

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  Faster activation: e-Mandate starts in just a day, while ECS takes 25-30 days.

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  One-time setup: You only need to set up e-Mandate once for recurring payments, unlike ECS, where you might need to submit new forms each time.

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  Simpler authentication: e-Mandate uses your familiar net banking credentials, while ECS might involve physical forms and bank visits.

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  No failed payments: If you don't have enough funds, e-Mandate won't process the payment, avoiding any charges.

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  Generally preferred: e-Mandate is considered a more secure and efficient option.

Benefits of e-Mandate/eNACH for Merchants and Customers

For Merchants:

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  Easier to Keep Customers: Customers only need to approve once, and then payments happen automatically, so they don't miss payments, and you keep them happy.

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  e-Saves Money: Less paperwork and chasing payments means lower costs for things like invoicing and collections.

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  More Secure: Customer data is protected by your payment provider, building trust with your customers.

For Customers:

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  No More Hassle: No need to remember to pay every month so that you can enjoy uninterrupted service.

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  Choose What You Need: Pick a plan that fits your needs, with the flexibility to switch or cancel easily.

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  Simple Setup: Use your online banking information to get started quickly.

Additional Information:

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  Easebuzz Recurri Subscriptions is a service that helps businesses manage recurring payments.

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  You can link your subscription plans to Easebuzz, and they'll handle the rest.

Eazy E-Mandate with Easebuzz: Automate Your Payments

Moving paper to digital:

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  Saying goodbye to physical registration, Easebuzz offers a new, API-based e-Mandate solution.

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  This method works with multiple banks, making it convenient for your customers.

What about older accounts?

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  Don't worry; payments for accounts registered before e-Mandate will continue as usual through file transfers.

Easebuzz makes it simple:

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  We offer a set of easy-to-use APIs that handle both new e-Mandate registrations and existing file transfers.

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  This helps your business:

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  Accept subscriptions and mandates from customers.

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  Get paid on time without any hassle.

No coding is required!

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  You can even use our dashboard to manage subscriptions without writing any code.

Easebuzz takes care of everything so you can focus on your business.

Easy ways to pay for your subscription

Here are different options you can choose from to pay for your subscription automatically:

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  Credit/Debit Card: Set up recurring payments on your card for a hassle-free experience.

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  eNach/eMandate: This digital option lets you pay directly from your bank account with a quick setup.

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  Physical Mandate: If you don't have digital access, you can use a physical form with your bank details and signature.

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  UPI Autopay (for India): This super-fast option (under 11 seconds!) lets you pay using your favourite UPI app for payments up to ₹15,000.

Easebuzz Recurri: Subscription Features Made Easy

Effortlessly manage subscriptions for your business with Easebuzz Recurri’s powerful features:

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  No coding required: Create subscription plans and invite users with simple links. Share these links easily through WhatsApp, SMS, or email.

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  Attract customers with trials: Offer free or discounted trial periods to entice new customers.

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  Flexible billing options: Choose the perfect billing model for your business. Whether it's a one-time fee, a fixed monthly/annual subscription, or a usage-based model, Recurri has you covered.

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  Stay informed: Get notified instantly about new subscriptions, successful payments, and cancellations with Webhook support.

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  Data-driven insights: Gain valuable insights into your subscriptions with advanced analytics.

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  Stay informed: Multi-user access: Manage your subscriptions collaboratively with your team using the Cashfree Payments dashboard.

FAQ's