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A payment mandate is an authorization given by a customer to Transact Bridge and the applicable payment network or payment provider to collect future payments automatically. Payment mandates are primarily used for recurring payments and subscriptions, where Transact Bridge needs to collect payments automatically after the customer has completed the initial authorization.

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How Payment Mandates Work

A payment mandate allows the customer to authorize recurring payments instead of manually making a payment for every billing cycle. The general flow is:

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Mandate Authorization

The customer authorizes a payment mandate through the Transact Bridge hosted checkout. Depending on the payment method, the authorization may involve mechanisms such as:
  • UPI AutoPay mandate
  • Card mandate
The customer does not have to manually initiate every subsequent payment after the mandate has been successfully authorized.

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Mandate in a Prepaid Subscription

For a prepaid subscription, the customer pays before accessing the service. The mandate can be authorized during the subscription checkout so that Transact Bridge can automatically collect the recurring amount for subsequent billing periods.

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Flow

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Example

Consider a monthly subscription:
The customer completes the initial payment of ₹999 and within that transaction TransactBridge also gets authorization for the recurring payment mandate. The subscription becomes ACTIVE. At the beginning of the next billing period, Transact Bridge can use the authorized mandate to collect the next ₹999.

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Mandate in a Postpaid Subscription

For a postpaid subscription, the customer uses the service first and payment is collected after the billing period. In this case, the customer does not need to pay the first postpaid invoice to activate the subscription. Instead, the customer authorizes a payment mandate on checkout. To authorize a payment mandate, a small amount is charged to the customer (Ex: $0.1), and on successful payment, the mandate is authorized for future collection.

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What Happens When Mandate Collection Fails?

A mandate collection may fail for reasons such as:
  • Insufficient funds
  • Expired or invalid payment credentials
  • Bank or payment-network failure
  • Mandate-related restrictions
  • Customer or bank authorization issues
When collection fails, the subscription does not necessarily terminate immediately. Transact Bridge can apply the configured retry, due, overdue, and unpaid-invoice policies.

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Important Considerations

  • A payment mandate is an authorization for future payment collection.
  • The customer must successfully authorize the applicable payment mandate before Transact Bridge can use the mandate for recurring collection.
  • Mandates are useful for automating recurring subscription payments.
  • In prepaid subscriptions, the mandate can be used to collect the recurring amount before the next service period.
  • In postpaid subscriptions, the mandate can be used to collect an approved invoice after the customer has consumed the service.
  • If a collection attempt fails, the configured retry and overdue policies determine the subsequent handling.
  • A mandate should not be treated as the same thing as an individual payment transaction. The mandate provides the authorization mechanism, while each subsequent collection results in an actual payment transaction.
In simple terms: A payment mandate gives Transact Bridge the customer’s authorization to collect future subscription payments automatically, eliminating the need for the customer to manually initiate every recurring payment.