NACH Debit mandates can have frequencies ranging from intra-day to yearly, and also ad hoc.
Payments can be charged on a mandate according to the mandate's frequency. Mandates can have the following frequencies. Note that the frequency definition is on successful payments only (failed payments do not count).
- As and when presented (ADHO): Multiple payments can be taken during any period. All mandate variants. NPCI imposes certain restrictions on usage of this frequency, in relation to the category code.
- Intra-day (INDA): Multiple payments can be taken every business day. eMandate only.
- Daily (DAIL): One payment can be taken every business day. eMandate only.
- Weekly (WEEK): One payment can be taken every seven days. eMandate only.
- Monthly (MNTH): One payment can be taken every calendar month. All mandate variants.
- Bi-monthly (BIMN): Two payments can be taken every calendar month. eMandate only.
- Quarterly (QURT): One payment can be taken every three calendar months. All mandate variants.
- Half yearly (MIAN): One payment can be taken every six months. All mandate variants.
- Yearly (YEAR): One payment can be taken every 12 months. All mandate variants.
LotusPay does not impose minimum frequency interval restrictions on merchants scheduling payments on mandates (if not linked to a LotusPay subscription). NPCI itself does not impose any such restrictions. However, each sponsor bank and destination bank has its own policy on handling payments that fall outside of these intervals.
For example, suppose a customer has authorised a mandate which has a frequency of 'monthly'. Legally, the merchant should only charge this mandate once per month. Technically, however, the merchant can submit payment requests more frequently e.g. daily. Doing so will generally cause the request to fail (unless it is a resubmitted payment request for an earlier failed payment). This is because the customer's bank will see that the payment request is breaching the frequency condition: the merchant is trying to take payments more frequently than the customer has authorised in the mandate.
Therefore, with ad hoc payments, it is the merchant's responsibility to ensure that they are honouring the frequency condition of the mandate.
If you need to charge the customer at irregular intervals, you should ask the customer to authorise a frequency of 'As and when presented'.
If you do not want to handle the complexity of scheduling payments, you can benefit from using LotusPay's subscription and plan logic instead.