Guide for how Stripe Billing users can comply with new RBI regulations for recurring payments

Last updated: October 6, 2021

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Banks across India are in the process of implementing new rules and systems to comply with the Reserve Bank of India’s (RBI) directive on the processing of e-mandates for recurring transactions, including subscriptions and bill payments. We’re in the process of introducing new Stripe Billing features which will support automatic registration of e-mandates and issue pre-debit notifications to customers to comply with the regulations.

Meanwhile, you may see higher payment failure rates on recurring transactions using Indian credit cards, as the entire payments ecosystem in India adapts to these new measures. This guide details steps you can take to maintain existing subscriptions, as well as ways to recover failed payments.

Setting up subscriptions to let customers manually pay each invoice

Subscriptions can be created or updated such that all associated invoices are sent to customers for them to manually pay. This can be set in the following ways:

  1. Through the API with collection_method=send_invoice or

  2. Through the dashboard with the option to “Email invoice to the customer to pay manually”.Screen Shot 2021-10-06 at 9.58.24 AM.png

Such subscriptions’ invoices (including for subsequent renewals) would be emailed to your customers, who can then use the Hosted Invoice Page to manually make payments. Since customers are on-session when they make such payments, they can also go through Additional Factor Authentication (AFA) as required by the regulations.

Recovering failed subscription payments

Handling Additional Factor Authentication (AFA)

We recommend enabling the option to email your customers a link to confirm payment if they fail to complete AFA as required. This can be enabled in Settings -> Subscriptions and Emails -> Manage Payments that require 3D Secure, as shown below.unnamed image

If customers fail to complete AFA, they will be emailed a secure Stripe-hosted page to go through AFA and confirm payment.

Handling failed subscription payments

Stripe also supports automatically emailing your customers if their subscription payments fail. You can enable this in Settings -> Subscriptions and Emails -> Manage failed payments for subscriptions, as shown below.Screen Shot 2021-10-06 at 10.02.23 AM.png

You can also provide a URL that users can be linked to from the email, to update their payment information.

Sending a Hosted Invoice Page for your customers to pay

If subscription payments fail, you can send your customers a Hosted Invoice Page that they can use to confirm payment on-session.

  1. In the Stripe Dashboard, you can navigate to the page for the specific invoice that has not yet been paid and lookup the “Payment page” in the “Details” section to obtain the URL for the Hosted Invoice Page.

  2. You can also retrieve the hosted_invoice_url of the specific invoice via the API