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Monnify Account Direct Debit is a simple, secure, and convenient ‘pull’ payment method that allows merchants to automatically collect recurring payments from a payer directly from their Accountaccount.
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Integration Credentials |
Ways to Use
One of these four ways to use will be suitable for your business depending on your requirement.
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Key Processes
Monnify Direct Debit comprises of two key processes:
Managing Mandates
Create a Mandate
Authorize a Mandate
Get Mandate Status
Cancel Mandate
Debiting Mandates
Debit Mandate
Get Debit Status
Mandate Management Workflow
To manage a mandate, here is the workflow of every Monnify Mandate.
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Mandate Status | Description |
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PENDING | Mandate creation is in progress. |
PENDING AUTHORIZATION | Mandate is awaiting customer authorization |
PENDING ACTIVATION | Mandate has been authorized by the customer and awaiting activation by the customers financial intuition. |
ACTIVATED | Mandate has been activated and can now be debited. |
AUTHORIZATION EXPIRED | Mandate authorization expired because the customer didn’t authorize it within the available timeframe. |
EXPIRED | Mandate has reached its expiration time. |
CANCELLED | Mandate was canceled by the merchant. |
SUSPENDED | Mandate was suspended by the customer’s financial intuition. |
Use Cases
Choose the method that best suits your business needs to help you set up properly:
Open Flexible: Debit varying amounts from a customer's account based on
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actual consumption of services or products without a predetermined end date.
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A utility company provides electricity vending. The bill varies depending on the amount of electricity to be consumed. The company can set up an open flexible mandate to debit varying amounts from the customer’s account each time based on their demand, with no predetermined end date. |
Open Fixed: Debit fixed amounts from a customer's account based on
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actual consumption of services or products without a predetermined end date.
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A streaming platform offers a monthly subscription fee to their customers. The platform can use an open fixed mandate to debit fee from the customer's account every month, continuing indefinitely until the customer cancels the subscription. |
Closed Flexible:
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Debit varying amounts from a customer's account based on
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actual consumption of services or products with a predetermined end date.
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A car dealer offers an instalment payment plan for purchasing a car. Customers can choose to pay off the total amount at their own pace, but all payments must be completed within 12 months. The store can use a closed flexible mandate to debit varying amounts from the customer’s account based on the payments they make, ensuring the total amount is paid before the end date. |
Closed Fixed: Debit fixed amounts from a customer's account based on
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actual consumption of services or products with a predetermined end date.
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Common Examples
Recurring Payment: Direct debit is ideal for managing recurring payments such as subscriptions, memberships, or regular bills.
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.
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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.
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An insurance company offers a one-year health insurance plan with monthly premiums of N10000. The company can use a closed fixed mandate to debit N10000 from the customer’s account each month for 12 months. After 12 months, the mandate expires. |
Integration Workflow
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Creating a Mandate:
The merchant requests to set up a direct debit using the customer's account details.
The Mandate Creation request is successful, and the mandate status will be "Pending"
Once Monnify creates mandate, the status will be changed to “Pending Authorization”
Authorizing a Mandate:
The customer authorizes the mandate. Authorization instructions can be received through:
An authorization email sent directly by Monnify to the
customer's email address.
An authorization link returned from the status API response
, which the merchant can present to their
customer.
Debiting a mandateMandate:
Once
authorized successfully, the
mandate status will be ‘Activated’ and merchants can use the Debit APIs to debit the account linked to the mandate as
per the agreed terms.
The APIs
accommodate different use cases
, whether fixed or flexible debits, open or closed mandates
Mandate States
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There are different possible states a mandate can be through its life cycle as captured in the mandate status parameter. They include:
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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.
based on set up.
Using Monnify Account Direct Debit allows for efficient and secure management of recurring payments. Follow the steps outlined above to integrate and manage mandates effectively.