Introduction to Mandates
A mandate is an agreement between a merchant and a user that authorizes future transactions within predefined parameters. Common use cases for mandates include:
- Account on file: Much like card on file, consumers can create an agreement to enable ad-hoc purchases with a predefined maximum transaction amount for a fast, simple one-click checkout experience. Unlike credit cards however, the terms of the agreement do not have to specify an end date so there is no need to update payment details every few years.
- Subscription Services: Easily manage recurring payments for subscription-based products and services. Whether you offer monthly software subscriptions, streaming services, or membership plans, the Mandates API ensures timely and automated Pay by Bank transactions.
- Split payments and lease agreements: Enable customers to make an upfront deposit, followed by fixed recurring payments and/or a final balloon payment. This is commonly used for travel bookings and novated leases.
This guide provides a comprehensive overview to help developers understand and integrate the Mandates API into their systems, ensuring seamless and automated payment experiences for their customers.
When are Mandates necessary?
Mandates are currently available for merchants using Banked in Australia, where merchants need a mandate in place in order to initiate PayTo payments on the users behalf.