Why Mandate Management ?
In today’s fast-evolving payments landscape, managing mandates or Standing Orders efficiently is critical for seamless credit transfer transactions, direct debit transactions, request-to-pay (RTP) agreements, and banking compliance. Businesses, banks, and Payment Service Providers (PSPs) need a centralised, automated, and secure way to manage mandates across multiple payment schemes.
Key Business Drivers:
Regulatory Compliance: Ensures adherence to SEPA, SWIFT, BACS and RTP mandate requirements.
Operational Efficiency: Reduces manual handling of mandates, automating workflows.
Faster Payments & Collections: Ensures mandates are active, valid, and available, reducing payment failures.
Enhanced Customer Experience: Simplifies mandate setup and management for businesses and consumers.
What is Mandate Management?
Mandate Management refers to the process of handling customer authorisations for direct debits and payment collections. A mandate is a legal agreement that allows an organization (the creditor) to collect funds from a customer's (debtor's) account under predefined conditions.
The Mandate Management API enables organisations to:
Create, search, activate, and cancel mandates across multiple payment schemes.
Store and validate mandates in a centralised repository.
Automate polling & metadata management for file-based mandate processing (SFTP).
Ensure mandate compliance with scheme-specific rules (SEPA, SWIFT, BACS, RTP).
Where is it Used?
The Mandate Management API serves a wide range of users across financial services, businesses, and fintech providers.
Example Use Case:
A utility company sets up a SEPA Direct Debit (SDD) B2B mandate to collect monthly bills from corporate customers. The API ensures the mandate is active before initiating debits, reducing failed transactions.
For more information on this service including the integration contracts please contact your PagoNxt Payments Hub service manager.