Dynamic Mandate Management

Introduction
Before being able to collect Direct Debits, you must first create a mandate in cooperation with the customer.
The official name for a mandate "Direct Debit Instruction" (DDI), is generally referred to as a "Direct Debit Mandate". In this mandate, the debtor, or rather the customer, confirms by signature that another party, for example a merchant, is authorised to debit his account.

Although the details differ slightly depending on the payment system, a direct debit mandate generally includes the following:

• Authorisation to collect all future payments from the customer, regardless of amount, timing or frequency.
• The obligation to inform the customer of each payment before it is collected.
• Protection of the customer against payments collected in error.

To create a direct debit mandate, the customer must fill out a DDI form and confirm their agreement by signing it. In general, there are three ways to do this:

• Online Mandate
  In an online mandate, the customer's details are entered online via bank-approved websites. Online mandates are commonly further differentiated depending on how the customer approves the mandate:
  • Click Mandate: The customer approves the mandate by checking a box and/or clicking an approval button on the website.
  • Email Mandate: As part of the process, the customer receives an e-mail which contains either a secret TAN and/or a link to click on. By entering the secret TAN on for example on a checkout page or by clicking on the link, the customer gives his signature.
  • SMS Mandate: As part of the process, the customer receives an SMS which contains either a secret TAN and/or a link to click on. By entering the secret TAN on for example on a checkout page or by clicking on the link, the customer gives his signature.
  • AIS Mandate: When creating an AIS mandate, the customer gives consent to the disclosure of his account information by logging into his bank account and therefore signing the mandate.
  • Dynamic Mandate: A dynamic mandate is essentially a procedure where the mandate type is decided by us based on configured parameters.
  • Paper Mandate
    Customer data is collected by handing out a form which the customer fills in and returns to you. The form and content of paper direct debit forms must comply with the strict regulations of the relevant direct debit procedure; therefore, your bank must first approve the form before it can be used for this procedure.
    You should retain returned paper direct debit forms as proof that your customer authorized a payment.
• Telephone Mandate
  The customer's bank information is collected through a phone call using a script approved by the bank.

It is important to note that regardless of who manages a mandate, a mandate entity must always be created via us. Please note that depending on various factors, such as the payment used scheme, your vertical or the bank in charge, not all options may be available.

In the following you can find diagrams which represent typical workflows of creating different types of mandates.

Click Mandate

Email Mandate

SMS Mandate

AIS Mandate

Creating an AIS mandate can only be done in combination with our hosted page functionality.

So in order to create a Mandate by using AIS, set the approvalBy parameter inside the request to the value ais. If you aren’t familiar with this functionality, you can read up on hosted pages and also the associated hosted pages endpoint. Inside the response you will receive a hostedPageId.

Send this hostedPageId, together with a success and fail URL, to the view hosted pages endpoint. By doing so, we are able to redirect the customer back the preconfigured successURL or failURL after finishing the payment process.

Paper Mandate

Telephone Mandate

Mandate delivery options

We offers the following range of services, which are used to provide scheme compliant mandates and pre-notifications to the customers:

• Generating documents according to the scheme rules and customized layouts mentioned below:
  • Mandate (pdf)
  • Mandate Setup Confirmation (HTML)
  • Payment Pre-Notification (HTML)
• Archiving the generated documents according to the scheme rules
• Sending the documents via email to the customer