Recurring payments and subscriptions
Set up recurring payments where you charge customers without them being present (Merchant-Initiated Transactions). Uses mandates to establish formal authorisation with defined limits, providing the strongest protection against disputes. Choose between charging an initial amount (subscriptions) or zero-auth (free trials).
Why use mandates?
Mandates are formal agreements that authorise you to charge a customer's card repeatedly without requiring their presence for each transaction.
Why use mandates?
Mandates are formal agreements that authorise you to charge a customer's card repeatedly without requiring their presence for each transaction.
Dispute protection
Mandates document explicit customer consent with timestamps, IP addresses, and agreed terms. This evidence is crucial when defending against 'I didn't authorise this' chargebacks.
Defined limits
Set maximum charge amounts upfront. Card networks see charges within mandate limits as pre-authorised, reducing declines and fraud flags.
Higher approval rates
Card networks recognise mandate-backed transactions as legitimate recurring charges, leading to fewer soft declines and better authorisation rates.
Network recognition
Visa, Mastercard, and other networks have specific transaction codes for mandate-based recurring. This signals legitimacy to issuers.
Future-proof
As regulations tighten globally (RBI in India, PSD2 in EU), mandates position you for compliance. African markets are following similar trends.
Regulatory landscape
South Africa
While SA doesn't mandate recurring payment rules like India's RBI, PASA (Payments Association of SA) and card schemes enforce strong consent requirements. POPIA requires clear consent for storing and processing payment credentials. Mandates provide the documented consent trail needed for compliance.
Nigeria
CBN (Central Bank of Nigeria) requires explicit customer authorisation for recurring debits. Mandate documentation helps meet these requirements and reduces disputes in a market with high chargeback rates.
Kenya and East Africa
CBK oversight and mobile money integration mean recurring payments need clear authorisation trails. Mandates work alongside M-Pesa and card payments for subscription businesses.
Card Network Rules
Visa and Mastercard enforce recurring payment rules across all African markets. Their Credential-on-File (COF) and recurring payment indicators require proper mandate setup to avoid scheme fines and forced refunds.
Without Mandates
Without mandates, you rely on 'credential-on-file' which has weaker dispute protection. In African markets with higher dispute rates, this can lead to significant revenue loss and potential scheme penalties.
Best Practices
- Set mandate max amount 20-30% above your highest expected charge
- Store mandate_id securely - you need it for every future charge
- Display clear terms in customer's language before authorisation
- Send SMS/email receipts for each charge (required in some African markets)
- Provide easy cancellation - builds trust and reduces disputes
- Keep proof of customer acceptance for at least 18 months (dispute window)
This step doesn't require an API request.