LotusPay is the recurring payments solution for businesses and organisations in India. We enable our merchant clients to quickly and easily collect recurring payments online from their customers. We do this via NACH Debit (eNACH).
NACH Debit enables businesses to collect recurring payments directly from their customers' bank accounts. This is done by asking customers to authorise mandates for direct debit. NACH Debit has replaced ECS Debit. NACH Debit is a payment system of the National Payments Corporation of India and is regulated by the Reserve Bank of India under the Payment and Settlement Systems Act 2007.
eNACH refers to NACH Debit eMandates - paperless mandates.
We have two plans:
- Standard: A straight-forward payment gateway solution for collection recurring payments via NACH Debit eMandates.
- Pro: For advanced requirements such as working with your own sponsor bank.
If you're not sure about how NACH Debit works, it's safe to go with Standard: We take care of everything and you just need a bank account to be paid out to.
Anyone that wants to take recurring payments directly from their customers' bank accounts in India can use LotusPay.
In the Standard plan there is no monthly fee. We only charge a percentage fee for each successful transaction.
In the Pro plan there is a no monthly fee. We charge a fixed fee per mandate and a fixed fee per transaction. There is a minimum billing commitment.
There are no setup fees or maintenance fees.
LotusPay cannot be used for taking instant payments such as credit cards, debit cards, digital wallets and UPI. NACH Debit mandates can take a few days to set up, hence they are not suitable for anything that requires instant or urgent confirmation of payment. However, you can use LotusPay alongside other payment methods.
It was - until we came along. We have made NACH Debit simple, fast, accessible and affordable. It's more reliable and far cheaper than other payment methods.
'Push' payment methods such as credit cards, debit cards, digital wallets and UPI generally require the customer to authorise each and every payment, so customers often delay, forget or fail to pay, or they just cancel. RBI has recently relaxed the requirement for second factor authentication on card-not-present transactions, which allows recurring payments on cards - but customers must have a card, be comfortable with using it, and must have authorised the instruction via the card network's security system.
NACH Debit is a 'pull' payment method: it requires the customer to only authorise an initial mandate for you to pull money from their account, following which they don't need to worry about authorising future transactions and you don't need to worry about chasing up customers for your payments. NACH Debit mandates are like cheques, so customers should not cancel them without your consent.
Cards can expire or get cancelled, so your payment will fail. NACH Debit mandates expire when you want them to, and they can't be lost or stolen so they are much more reliable for recurring payments.
Payment gateways charge you uncapped percentage fees of up to 3% for card, wallet and UPI payments. NACH Debit with LotusPay is much cheaper for you.
Most Indians do not have credit cards. NACH Debit requires the customer to have a bank account, which nearly everyone has.
Digital wallet payments require the customer to load the wallet first, which requires the customer's authorisation each time - again, more friction for paying you.
NACH Debit mandates are like cheques: both are negotiable financial instruments. Therefore, customers should not cancel mandates without your consent, or fail to honour the payments drawn on the mandates.
Section 138 of the Negotiable Instruments Act 1881 accords certain rights and remedies to the payee of a cheque if the payer dishonours the cheque for insuffiency of funds (i.e. if the cheque bounces). Section 25 of the Payment and Settlement Systems Act 2007 accords similar rights and remedies to the payee against dishonour of electronic funds transfer for insufficiency of funds in the payer's account.
Your funds are paid directly into your bank account.
Your funds will reach you on the same day that we collect the amount from your customer.
The smallest amount for a single transaction is Rs 100.
The maximum amount for any one transaction with eMandates is Rs 1,00,000 (1 lakh or one hundred thousand). NPCI will likely increase this limit in 2018.
There is no limit on the number of transactions.
Yes. You can use our simple dashboard or API to create fixed plans, or inform us of the variable amounts that you want to bill to your customers.
You can collect daily, weekly, monthly, quarterly - or build custom frequencies. You can even select ad-hoc frequency, meaning that you can collect payments as and when you want.
Signing up takes just 10 minutes. We will review and activate your account within two business days.
You can create a payment link and post this on your website. On clicking this link the customer will be sent to your branded page on our server where they can authorise the mandate.
Your customers authorise payments to you via NACH Debit eMandates. Most individuals can electronically sign a mandate using Aadhaar eSign. Many authorised signatories of non-individual bank accounts can also do the same, depending on which bank they are banking with.
You can enter the customer's details, or assist the customer to do so, but the customer needs to personally authorise the eMandate.
In our online dashboard you can see up-to-date information on your customers and payments. We will also notify you by email.
Signing up online and using our service means that you accept our merchant agreement, which you can find linked at the bottom of this page. There is nothing else to sign.
After signing up, we will ask you for your organisation's details, your bank account details and your personal details. We will also need some documents to verify both you and your organisation.
You must have a bank account in India to receive the settlement payouts. It is not possible to be paid out to a foreign account.
You do not need to be NACH-enabled. You would be benefitting from LotusPay's deep NACH integration with our banking partners, hence you simply need a bank account to be paid out to - we take care of everything else.
If you want to be on our Pro plan to benefit from absolute fees (rather than percentage fees) and only your name appearing on your customer's bank statement, you would need a NACH utility code. We can get that for you, free of cost. You do not need to discuss NACH with your bank.
You can easily sign up and test it out for yourself. In case you prefer to see a demo, please contact us and we will schedule a time to give you a live demonstration. We can also provide you with a sandbox account for testing.
Yes. LotusPay is available to companies, partnerships, trusts, societies, proprietorships and government organisations. Individuals cannot currently be LotusPay clients.
Yes. Charities and religious organisations are perfectly welcome. You must be a registered trust, society or non-profit (Section 25) company. Due to RBI FEMA regulations, you can not collect funds from a customer's NRE account.
Developers should sign up as normal and then get in touch with us to review our API.
Yes, you can sign up without any commitment and see how the product works. There is no lock-in or payment due and you can stop using the product at any time. We only take payment for successfully processing transactions for you.
Yes. It's easy to migrate your existing NACH Debit mandates to LotusPay. We do not charge any fee for migration. Please contact us to get started.
No. We are a technology-driven product company, hence we focus on paperless direct debit: eMandates (eNACH).
eMandates are better, easier, faster, cheaper and more secure than physical mandates. The current version of eMandates works with Aadhaar eSign, which means they are ideal for taking eMandates from individuals. Some banks will accept Aadhaar eSign eMandates for non-individual accounts, such as accounts of private limited companies. That would require the authorised signatory of the account to have updated their Aadhaar number on their company bank account. For those banks that do not support such eMandates, the alternative option is to use physical mandates.
Yes. Most banks will gladly offer you a physical mandates service. LotusPay can help you with eMandates.
Yes! NPCI's corporate portability guidelines allow you to do this. Get in touch and we'll help you get started.
eMandates (electronic mandates) are system-generated XML files that contain essentially the same information as physical mandates, but they also contain the customer's digital signature. eMandates are designed to be read by computers, not people - you would have difficulty understanding the contents of an electronic mandate file.
eMandates must be digitally signed by the customer via Aadhaar eSign.
Your customer can submit an eMandate if all of the following conditions are met:
If you do not pre-fill the customer's details before inviting them to subscribe, then we guide your customer through these requirements in the mandate form.
If your customer's bank account is a joint bank account, they should authorise the eMandate only if the mode of operation is 'Either or survivor' or 'Anyone or survivor'. If the mode of operation is 'Jointly' then they cannot use eMandates as their bank will decline to create the mandate.
Aadhaar is the government's unique national biometric ID for every resident of India.
For eSign NACH Debit to work, the customer must have linked their mobile or email to their Aadhaar. This is to receive a One Time Password via SMS or email during the eSign process. Most people have added a mobile number or email address (or both) to their Aadhaar profile. If a mobile number has been linked, it appears on the Aadhaar card itself. This is the mobile number to which UIDAI sends One Time Passwords via SMS for Aadhaar-related services such as authentication and profile changes. If no mobile number appears on the Aadhaar card, it means the customer has not linked it. The customer can link mobile to Aadhaar by visiting any Aadhaar centre with the required document proofs for updating Aadhaar.
NB: Linking mobile to Aadhaar is not the same as linking Aadhaar to mobile. Linking mobile to Aadhaar is done in the UIDAI database, and one Aadhaar can only have on mobile number. Linking Aadhaar to mobile is done with the mobile network operator, and multiple mobile connections can have the same Aadhaar.
eSign is the process of digitally signing an electronic file. There are many different types of digital signature, but the only one that is valid for eMandates is Aadhaar eSign.
Aadhaar eSign is a particular type of eSign that uses an individual's Aadhaar details to verify the identity of the individual and generate a temporary digital signature for signing an electronic file - in this case, an eMandate.
For eSign NACH Debit to work, the customer must have linked their Aadhaar to their bank account. This means they should have updated their bank account profile with their Aadhaar number. All banks are encouraging their customers to do this, and most banks have enabled customers to do this in netbanking. Customers can do it in the bank branch too. The government has made it mandatory for customers to do so by 31st December 2017, under the Prevention of Money-laundering Act 2002.
NB: Linking Aadhaar to bank account is not the same as seeding Aadhaar to bank account. Linking means that a person has updated their bank account profile with their Aadhaar number - anyone can have multiple bank accounts all with the same Aadhaar number. Seeding is more specific: it is the process by which a person declares that they want direct transfer of government benefits to a nominated bank account. A person may only seed one of their bank accounts. Seeding is not necessary for eSign NACH Debit. Seeding automatically includes linking, so if a person has seeded a bank account then it means linking is done.
Any bank customer can easily check in their netbanking if Aadhaar has been linked to their bank account. Alternatively, the customer can call their bank or visit their branch.
The following banks are currently enabled as 'destination banks' for eMandates via eSign. 'Destination bank' means the bank of the end customer, from whom payment is being taken.
NB: The sort order given is as per NPCI's website.
New banks are getting enabled every week. All the leading banks except for SBI are already enabled. If your customer's bank account is with a bank that is not enabled for eMandates, the only alternative is physical mandates.
The customer's bank verifies the customer's Aadhaar eSign digital signature using a validation engine. Since the customer has already updated their bank account profile with their Aadhaar, the customer's bank can easily verify that the person who signed the eMandate is the same person who owns the bank account mentioned in the eMandate.
Currently, Aadhaar eSign is the only way to create an eMandate. We will soon add two additional methods: your customer will be able to authorise an eMandate via netbanking login or via debit card and PIN. This is ideal for those customers (including non-individuals) who do not meet the prerequisites for Aadhaar eSign eMandates.
We can provide a digitally signed confirmation letter of the details in the eMandate on demand.
Customers always see an explanation that you want to charge them according to the payment plan that you invited them to subscribe to.
The rest of the process that your customer sees depends on what options you have selected for them.
A) Pre-filled: If you have pre-filled the customer's details using our dashboard or API, your customer directly sees the check details page. Then the customer checks their details and goes through the eSign process.
B) Public form: You can create plans (templates for subscriptions) and share the plan links with your customers. The customer sees that you want them to set up a subscription of a certain amount and frequency, and they see a simple form for entering their own details. Then the customer checks their details and goes through the eSign process.
We guide the customer through the Aadhaar eSign process. The customer agrees to the resident consent for Aadhaar-based authorisation.
- OTP: Your customer receives a One Time Password (six digit number) by SMS and/or email from UIDAI. They must enter this code on the page. If they enter the code correctly, they see a confirmation page and are sent to the redirect URL that you provide.
- Biometric: If you have integrated a UIDAI-approved biometric device into your web/mobile app, you can take a fingerprint scan from your customer to sign the eMandate.
In our Standard plan, both our name and your name will appear on your customer's bank statement. You can customise how your name will appear in the settings section of your LotusPay dashboard.
In our Pro plan, only your name appears on your customer's bank statement.
Unfortunately it's not possible to host the payments page on your website. The payment process is technologically complex and we make it very simple. The system in which customer's details are stored must be on a secure server which is independently audited for data security up to CERT-IN standards. UIDAI regulations require that Aadhaar eSign must be performed on the eSign gateway page of an authorised ASP (Application Service Provider), which we are.
If you integrate LotusPay into your mobile app, you can show the eSign page via web-view within your app.
We send email notifications to your customer when you invite them to subscribe to your plans, when payments are collected, and when there are changes to their eMandates. The email address is ours but the display name is yours. We Bcc all customer emails to you too. We do not send SMS notifications.
No. The LotusPay dashboard is only for you - our client.
No. Our payments solution is for you - our client. You will need to continue supporting your customers. If they have questions about their payments, your LotusPay dashboard gives you all the information you need to answer their questions. If you need help, you can easily ask us.
More than 900 banks in India offer NACH Debit, and they represent nearly all banking customers in India.
eMandates are generally verified by the customer's bank within one or two business days. Compare this to physical mandates, which can take 7-30 days.
The customer's bank can reject creation of the eMandate if it contains invalid information, for example if there is a wrong account number or if the customer has not updated their bank account with their Aadhaar number.
More than a quarter of all physical mandates are rejected due to signature mismatch. However, eMandates are never rejected for signature mismatch because they are pre-authorised by the customer and the signature is an encrypted digital code, not a physical 'wet' signature.
If an eMandate creation fails, we will inform you immediately along with the reason. You can easily invite your customer to try again.
NACH Debit, like a cheque, is a negotiable financial instrument - it cannot be revoked (although it can be cancelled). The signer must honour payments agreed in the eMandate. If the customer revokes the eMandate or fails to honour the payments, you have legal recourse under the Payment and Settlement Systems Act 2007.
If your customer does not have cleared funds in their account, the debit will fail (just as a cheque bounces). You and your customer will both be informed by email, and you will also see it online. We will re-attempt the debit once, on the next bank working day.
There can be other reasons why payments fail such as: bank account closed or mandate cancelled. We will always inform you of the reason why a payment failed.
Automatic plans: If the plan is a fixed regular amount, you do not need to take any action. If the plan is a variable regular amount then you need to upload the required amounts no later than the day before the due transaction date.
Ad hoc plans: You need to request the payments on the required dates. You can do this our dashboard, via bulk file import, or via our API.
On the due date of the transaction, we request the customer's bank to send funds as per the agreed eMandate. The customer's bank sends the funds to our bank's nodal (intermediary) account. As soon as we receive the funds, we instruct our bank to pay out the funds to you. Funds reach you on the same day because we pay out by IMPS. We do not earn any interest on your funds. You receive bulk settlements for all the funds payable to you on that day from all your customers.
In our simple online dashboard, you can easily view the customer debits and your settlement credits. You can export data to CSV with a single click and manipulate it in a spreadsheet or import it into your own application, CRM or accounting software. You can also use our API to do this.
Yes. If you want to stop using LotusPay, you can easily migrate your eMandates out of your LotusPay account at any time, free of cost. We will help you do it. You can port your NACH Debit process to any sponsor bank or provider.
We deduct our fees after collecting funds from your customers and before paying out the funds to you.
Yes, we are registered for GST therefore we charge you GST on our fees.
LotusPay GST ID Number: 06AAKCM4109M1Z9
Yes. We report GST collections. If you report your GST paid to us, you will get input tax credit.
Yes, you can easily view your monthly tax invoices in our dashboard.
If you are not registered for GST, GST compliance does not affect you but since we are GST-registered you still have to pay us GST on our fees. We pay this GST to the government but you would not get the benefit of input tax credit (meaning you cannot claim offset for your paid GST against your received GST).
NACH Debit is a payment system created and managed by the National Payments Corporate of India, and regulated by the Reserve Bank of India. It is a tried and tested payment method used by hundreds of institutions to collect recurring payments. It is an extremely robust payment system - for example, it is used by all mutual funds for collecting payments for systematic investment plans.
Our website uses SSL (Secure Socket Layer) for transmission of all data between users and us. Our system is hosted on secure servers in India and has stringent data security policies in place. Our system has been independently certified to ISO 27001 information security standards and in accordance with the Information Technology Act 2000 and applicable rules and regulations.
LotusPay has been audited and certified by an independent expert agency for our information and cyber security practices. The agency is empanelled by CERT-IN, the government's department for cyber security in the Ministry of Electronics and Information Technology.
NACH Debit is a highly regulated and robust payment system. LotusPay receives client funds into a nodal account: a non-interest paying account for client funds, legally controlled by our bank. Therefore client funds are entirely segregated from our own funds and we would not benefit from delaying disbursement to you. We generally disburse funds to you on the same day we receive them. RBI regulations state that client funds cannot be kept in a nodal account for longer than three days.
We work hard to maintain a safe and robust platform. If you believe you have discovered a vulnerability, we ask that you disclose it to us in a responsible manner. Sharing vulnerabilities publicly puts our entire user base at risk, so we urge you to keep issues private until we have had a chance to fix the issue.
Please report it immediately to us by emailing firstname.lastname@example.org and we will take swift action. If you disclose the vulnerability in a responsible manner, we will pay you a reasonable cash reward in recognition of your efforts in security research. We will not pay rewards for denial of service attacks or other deliberate disruption of our service.
Our powerful REST APIs enable you to seamlessly integrate our product with your web or mobile application. We provide you with an API key which is used for authenticated communications between our system and your system. Your developers can easily create powerful integrations with LotusPay and use our webhooks to pull any information into your application, and push instructions to us to create, modify and cancel objects such as customers, bank accounts, eMandates, subscriptions and payments.
Get in touch with us and we will share the documentation with you.
Yes, get in touch with us and we will set it up for you.
Yes, but only with LotusPay Pro. With Pro, you’re able to design your own payment pages and you can host them directly on your website.
On the standard LotusPay product, we host the payment pages securely on our website in order to comply with the security rules of the banking and signing systems.
You can redirect the customer to our payment page and we will redirect them back to your site. Alternatively, you can allow customers to access the payment pages via a pop-up from your website.
No. The mandate authorisation process may not function reliably and securely within an iFrame.
Only once authorisation (the NACH Debit mandate) is in place. Customers must be sent to secure payment pages to give initial authorisation of the NACH Debit.
To make this as easy as possible for your clients, you can pass their personal information to us via the API to prepopulate the form.
Once authorisation is in place, payment can be requested via the API.
LotusPay provides webhooks to notify Merchants of any changes in the status of its resources. One extremely useful example is determining when a bill has been paid.
You can find out more about available webhooks and how to use them in our developer documentation.
Yes! Our mobile SDKs are provided to you as a single-line integration.
No, but our APIs are very simple for you to integrate.
You can email us at email@example.com. Our developers are on hand 10am-6pm, Mon-Fri to help with your technical queries.
A number of detailed product guides are also available in our Support Centre.