Do Any of the Payment Gateways in India Support Recurring Billing?

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Answer
Himanshu Singh Rathor
Himanshu Singh Rathor
  • Answer written
  • 2 Years ago
  • Edited
RazorPay has started supporting Recurring Billing in India. However, their program is still in Beta. I tried applying for it, but am still to hear back. According to their blog post, they plan to roll this feature out in Mid-December.

https://razorpay.com/blog/product/2016/11/22/introducing-recurring-payments-in-india.html

This is how Recurring Billing will work using Razor Pay:

Step 1: The customer signs up on your platform for the service and selects a plan for a timely subscription. At the time of the first payment, they enter their card details and agree to apply for recurring payment through a checkbox. If the customer has an Indian issued credit card, the first transaction will go through a standard Two Factor Authentication process (OTP / Mastercard Secure password / Verified by Visa Password). If an international customer, the transaction will go through without Two Factor Authentication.     

Step 2: Using the API, Razor Pay merchants will be able to initiate the transaction by passing the amount, schedule and the duration of the recurring plan. Once this is done, the recurring billing will be done automatically on that date.

To Apply for the Beta Program Click here - https://docs.google.com/forms/d/e/1FAIpQLSdfvilVlFeSntD1Q67qUQFepFEumcUMT-fU6GxtHBkLg56Dag/viewform



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Rubin Sabharwal
Rubin Sabharwal
  • Answer written
  • 2 Years ago
  • Edited

Razopay has launched recurring payments in India but I am not sure how there are circumventing the RBI guidelines. 

Here is the link to the article.


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Raghav Kapur
Raghav Kapur
  • Answer written
  • 2 Years ago

The RBI (Reserve Bank of India) has made it mandatory for all online transactions in India to require two factor authentication. As a result of this, merchants can not use the recurring or subscription billing option for Indian customers.

Most online/cloud based software products use the recurring billing concept, i.e a user enters their credit card in to the system and they are changed a fixed amount every month automatically. This is a huge problem for the start up community in India, as they can not sell SAAS based products in India. There are many posts which talks about this, however as of now, it does not seem like the RBI is going to change this rule.

As a result of this rule, none of the recurring billing solutions like Recurly, ChargeBee etc. support these kind of payments from India.

However, there are a few ways that you can get around this issue.

Option 1: Set up a company outside India: This is not an easy solution, however you can set up a branch office or a subsidiary in another country, with the sole purpose of collecting payments. Here is a blog post that tells you how to do this.

Option 2: International Payment Gateway: You can use an international payment gateway like 2Checkout. However their transaction fees are quite high – effectively over 6% by the time the money is converted to INR and hits your bank account.


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Vaibhav Bakshi
Vaibhav Bakshi
  • Answer written
  • 2 Years ago

No, recurring billing is not supported by any payment gateway in India as RBI has mandated 2-step authentication. In your case, there are two solutions available. First is to go for 2chcekout. However, they cater to only specific categories. The other solution that you may want to look for is to go for any Indian payment gateway but model the subscriptions with a quarterly, semi-annually or yearly plan. It would at least save the hassle of customers having to enter their card detail every time.


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