MOLPay Recurring Payment is an automated charging/payment method for merchants and buyers to reduce the risk of making late payments. The transactions are processed at predetermined intervals by using tokenization system to save and protect credit card details and use them once the charging period is met.
Who will benefit from this?
It is a necessary solution for online businesses that want to have a flexible payment schedule and those who want to improve their business decisions through a consistent cash flow.
Examples of use cases
Subscription based services (Entertainment such as video/audio streaming)
Monthly fees for internet service provider or telcos
Tuition fees for educational organisations
Rental or Utility bill payment
Uber-like charging model for public transportation services
Invisible payment for cashierless store or automated self-checkout counter
How does MOLPay Recurring Payment works?
- Buyer subscribes or pays for the first time and the card credentials will be tokenized and verified with 3D-Secure (Verified by Visa or MasterCard SecureCode).
- Once the charging period is met or standing instruction received from the recurring API, MOLPay will charge the buyer’s card and send a notification to both merchant and buyer upon successful or failure attempt.
- The charging will repeat until the terms end, or either the merchant or buyer sends instruction to stop the automated payment.
Due to the first transaction was conducted via the Internet as a 3D-secure or attempted authentication, chargeback protection applies to the original electronic commerce transaction. For the subsequent Recurring Transactions, chargeback provisions applicable to Recurring Transactions apply; 3D-secure chargeback protection does not apply.
How does the installment work?
The transactions must have a specified end date and shall not exceed one year between transactions.
Similar to the processing of recurring payments, the initial installment transaction must be authenticated and follow the authorization rules associated with an authenticated transaction.
The remaining transactions are processed as installment transactions, hence it must not contain authentication data, specifically the ECI and the CAVV.
Chargeback liability protection for the acquirer/merchant does not apply to the subsequent installment transactions.