Direct Debit (Mandate Management)

What is Direct Debit?

Direct debit is a form of pull payment, where a third party, with the customer’s consent, is authorized to withdraw funds directly from the customer’s bank account on agreed dates, typically to pay bills. This arrangement is formalized through a mandate that the customer sets up with their bank. Once the mandate is activated, the third party can initiate debits from the account at the agreed frequency. Essentially, the mandate serves as the foundation for initiating direct debits.

How Fincra’s Direct Debit Solution Works

Fincra’s direct debit service is powered by NIBSS and fully automated, streamlining the traditional process. Unlike conventional methods that require customers to visit their bank and endure a 36+ hour wait for mandate activation, Fincra’s solution activates mandates within minutes.

With our solution, once a customer makes a nominal token payment of N50 to NIBSS, the mandate is instantly activated—eliminating the need for any bank visits.

Steps to Get Started:

Create a Mandate: Input your customers’ relevant bank details and create a mandate.
Activate the Mandate: Your customer will be prompted to make a token payment, which instantly activates the mandate.
Initiate Debits: Once the mandate is active, you can debit your customer’s account at any frequency that suits your needs.

Use Cases:

Directly debiting a customer’s bank account
Recurring payments
Loan repayments
Subscription services

To get started go to our Direct debit api section.