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Collecting Recurring Payments: Direct Debit

Important Note: Direct Debit is currently available via API integration only. See the Direct Debit Developer Documentation.


Direct Debit is an automated payment method that allows Monnify to collect funds directly from your customer’s bank account. Instead of waiting for manual transfers, you get paid automatically for recurring billing once the customer provides initial consent.

This is ideal for any business that bills customers on a schedule.


How Direct Debit Works

Direct Debit transactions are built on a mandate instruction, which is a formal agreement between you and your customer that authorises recurring debits from their (the customer’s) account. The process follows three stages:

  1. You create the mandate with the customer's details and billing terms.
  2. The customer authorises it via a secure link you share with them.
  3. The mandate activates, and you can begin debiting.


How to Activate Direct Debit

From the email address linked to your Monnify account, send an email:

  1. To: [email protected]
  2. Subject: Direct Debit Activation: [Your Business Name]
  3. Body: Provide your Monnify Business Code and a briefly describe your intended use case.

Tip: You can find your Business Code at the top of your dashboard menu.


Our team typically reviews and activates requests within 24 hours. You'll receive a confirmation email within the same email thread once the feature is enabled, and you can begin implementing the API endpoints.




Types of Mandates

Mandates can be configured in four ways depending on how your billing works:


Type

Amount

End Date

Example Business

Open Flexible

Varies

None

Utility companies billing based on usage

Closed Flexible

Varies

Set date

Instalment plans with variable amounts

Open Fixed

Fixed

None

Streaming subscriptions billed until cancelled

Closed Fixed

Fixed

Set date

Insurance premiums — e.g. ₦10,000/month for 12 months


Mandate Statuses

As a mandate moves through the transaction lifecycle, it can have up to 8 different statuses. Here is what each status means:


Status

What It Means

PENDING

Mandate creation is in progress.

PENDING VERIFICATION

Mandate details are being verified by the routing network.

PENDING AUTHORIZATION

Awaiting the customer's consent via the authorization link.

PENDING ACTIVATION

The customer has authorized, awaiting confirmation from their bank.

ACTIVATED

Mandate is live and ready to be debited.

AUTHORIZATION EXPIRED

The customer did not authorize within the available timeframe.

EXPIRED

The mandate has reached its set expiration date.

CANCELLED

Mandate was cancelled by you (the merchant).

SUSPENDED

Mandate was suspended by the customer's bank.


Key Things to Note

  1. Authorization links are valid for 30 days. Once a mandate is created, share the authorization link with your customer promptly.
  2. Customer authorization experiences may vary depending on their bank. Monnify uses two routing networks: TeamApt and NIBSS. If the customer’s bank supports TeamApt, authorization is free and processed via an OTP or other secure methods. If the bank is not yet on TeamApt, Monnify automatically routes it through NIBSS, which requires a one-time ₦50 authorization charge. Both pathways ensure successful setup.
  3. Mandate debiting only works on activated mandates. Always confirm a mandate status is ACTIVATED before attempting to debit.


Ready to Set This Up?

Since Direct Debit is configured entirely via the API. See Direct Debit Developer Documentation to get started