Introduction to Mandates
A mandate is an agreement between merchant and user that authorizes future transaction within predefined parameters. Examples of 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.
- Installment Plans: Offer your customers the flexibility to pay in installments. The Mandates API allows you to set up recurring payments for installment plans, making it easier for customers to manage their finances while ensuring you receive payments on schedule.
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.