...
Loan Repayments: Direct debit can facilitate the periodic debits on customer’s account for loan repayments.
Integration Workflow
The process of setting up a direct debit involves three key steps: the creation of a mandate by the merchant, its authorization by the customer, and the actual debiting of funds as per the mandate's terms.
...
Creating a mandate: This process begins when a merchant makes a request to set up a direct debit with a customer’s account details. Mandate creation API is called and mandate will be pending authorization.
Authorizing a mandate: This process entails the authorization of the mandate. The process of authorizing a mandate after initiation is completed by the customer and the requirements are communicated as follows.
Authorization email sent directly by Monnify to the customers email address
Authorization link returned from API response is sent by merchants to their customersDebiting a mandate: Once a mandate is authorized, the merchant can call debits APIs to debit the account linked to the mandate as agreed in the consent arrangement. The APIs are designed to accommodate different use cases - be it fixed or flexible debits, open or closed mandates.
Mandate States
...
There are different possible states a mandate can be through its life cycle as captured in the mandate status parameter. They include:
PENDING: Mandate creation is in progress.
PENDING AUTHORIZATION: Mandate is awaiting customer authorization using the authorizationLink in the mandate creation response parameter.
AUTHORIZATION EXPIRED: Mandate authorization expired as customer didn’t authorise it within the available timeframe.
ACTIVATED: Mandate has been activated.
Expired: Mandate has reached its expiration time.
CANCELLED: Mandate was cancelled by the Merchant.
SUSPENDED: Mandate was suspended by customer’s bank.