Merchants seek wider testing of recurring payments

With less than a week remaining for implementation of Reserve Bank of India’s (RBI) tokenisation mandate, top merchants have once again approached the regulator to direct banks, payment aggregators and card networks to ensure that recurring payments are tested widely to avoid disruptions.

Without directly seeking an extension, the Merchant Payments’ Alliance of India (MPAI) requested the RBI to mandate system participants to demonstrate the same level of success rate in token and card-based payments in a letter dated September 26. The letter also requests that all existing e-mandates based on card details be immediately transferred to tokens.

“We request the RBI to mandate banks, payment aggregators, payment gateways and card networks to demonstrate that CoFT (Card-on-file token) solutions operate with the same degree of efficacy as card-based processing across use cases,” the letter to the RBI read. “We request the RBI to ensure that existing e-mandates based on card details are migrated onto tokens forthwith and that solutions on recurring payments are tested at scale to avoid drop-offs during mandate renewals.”

The merchants have also requested access to testing flows to ensure visibility and integration at the merchant level.

“As things stand, we are concerned that inadequately tested solutions will be pushed to market post-October 1, sparking another wave of disruptions in card payments,” the industry body said.

MPAI represents a host of category one merchants including Netflix, Microsoft, Spotify and Disney Hotstar.

Tokenisation is a process by which card details are replaced by a unique code or token, allowing online purchases to go through without exposing sensitive card details.

Source: Economic Times

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