The new E-mandate regulations that the RBI announced hosts of new guidelines to streamline the process and security measures for card payments, including the requirement of Additional Factor of Authentication (AFA), especially for ‘card-not-present' transactions. This brings changes to the existing e-mandates that are set up to manage recurring payments.
All financial institutions, associated partners, and gateways must comply with these guidelines starting September 30, 2021.
The following impact may apply to your Stripe integration:
Banks will trigger dynamic authentication to complete additional factor authentication (AFA) when setting up the mandate and for transactions that exceed INR 5000.
The initial setup of mandates will require integrators like us to share additional details with Stripe. We will await additional information on these parameters.
For sub recurring payments, Pre-debit notifications must be sent 24 hours prior to the actual transaction, you may experience delays of up to 3 to 4 days for the settlement cycle to be complete for recurring payments.
All existing customers would need to set up their mandates again post-October 1, 2021 to ensure recurring payments can be processed without AFA.
Note: Failure to set up updated mandates with customers will require customers to complete AFA for recurring transactions post-October 1, 2021.
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