FAQs - Payments and User Verification

This section outlines some of the most important FAQs pertaining to the Payments module. If you have any other queries, please reach out to us at [email protected] .

General

1. What are the different types of collections modes supported by Decentro ?

Decentro supports collections from individuals or businesses through UPI collections and Direct Bank transfer to a virtual account.

2. Does Decentro support cards like Debit or Credit Card ?

Decentro currently doesn't support Debit or Credit card based collections as of now Decentro currently supports only direct debits like UPI collections, Virtual account based collections and mandates using ENACH and UPI.

Payouts

The FAQs in this sub-section pertain to the Direct Payouts

1. Who can use payouts?

Payouts can be used by any Indian business entity which wants to transfer funds to a beneficiary using UPI, IMPS, NEFT, and RTGS as payment methods.

2. How do I use payouts?

Decentro offers a payouts function by using APIs and Decentro Dashboard (web).
Customers can pass the details of the beneficiary through our API and also through the Dashboard to initiate a payout.

3. What are the methods of transaction which are supported by Decentro?

Decentro supports payouts via UPI,IMPS,NEFT and RTGS

4. What are the advantages of using Decentro’s Payouts?

Decentro’s clients can initiate payouts 24x7 with lightning-fast transaction processing and high success rates. You can enable instant payouts through our UPI and IMPS channels. Clients can easily view the transaction status through our dashboard and callbacks. Decentro support teams are always available to help you with any problems you might face.

5. How can I use Decentro’s Dashboard for payouts?

Decentro’s Dashboard can be used to manage beneficiaries (add and modify), initiate payouts, and view status of all the payout transactions.

6. What is the API workflow of payouts?

Decentro offers Payouts API with both asynchronous and synchronous flow. The recommended API workflow is shared below:

• Load funds to your virtual account using you business/personal bank account
• Validate bank account using our Penny drop service instantly to know who the account belongs to
• Add beneficiaries against the created virtual account before initiating a payout. This is optional
• Payout to your beneficiaries using any of the supported modes using our Payout services
• Decentro triggers Account Balance callback against the Virtual account into which the funds are credited and debited
• Decentro triggers Transaction Status callback against the Virtual account into which the funds are credited
• Check the status of the payout by hitting the Get Transaction Status API as an alternative to callbacks. This is to be used if the callbacks are not triggered.

7. How do I load funds into the Virtual Account?

Customers can load their funds into the Virtual Account using their bank account and configuring the virtual account as the beneficiary during the fund transfer process.

8. Do I have to create a beneficiary using the ‘Manage Beneficiary’ API every time I do a payout?

Decentro recommends using the ‘Manage Beneficiary’ API if you will be initiating multiple payouts against the same beneficiary. For one-time payouts, consuming the Manage Beneficiary API is not required.

9. When do I use the Get Transaction Status API?

Decentro offers customers the ability to check the status of the transaction, by passing the Decentro Transaction ID, when using the ‘Get Transaction Status’ API . This API should be used only if the transaction is in a ‘pending’ state.

10. What action must be taken when a transaction is in pending state even after using Get Transaction Status API?

Decentro takes the necessary measures to reduce pending transactions, but if a transaction is pending for longer than 2 hours, please wait for T+2 days for the final payment status (terminal state). If they are still in pending state, reach out to [email protected] or your dedicated customer success representative.

11. Does Decentro send any callbacks for the status of the transaction?

Yes, Decentro provides two types of callbacks for payouts

• Transaction Status Callback: This callback will show the status and details of the transactions
• Account Balance Callback: This callback will help you understand the movement of funds within your virtual account. If the funds have been debited from the account, a debit callback will be sent. If the funds have been added to the account, a credit callback will be sent.

12. I want to reconcile my transactions. How can Decentro help me?

Decentro’s ‘Consolidated Account Statement’ functionality, accessed through our dashboard, will allow you to generate the reconciliation file. You must specify the date range and Decentro will share a CSV file, with the required transaction details, at your registered email address.

Reverse penny pull FAQs

1. What is PennyPull (Reverse Penny Drop Verification)??

PennyPull or Reverse Penny Drop Verification is a system that allows merchants to verify bank account details by initiating a small transaction (penny drop) and confirming it with the account holder. After successful verification, the amount gets reversed, i.e., credited to the beneficiary account.

2. Who can use the Penny pull product of Decentro?

Any registered Indian business (merchants) can use the Penny pull capabilities of Decentro to verify bank accounts from individuals or businesses.

3. Why do businesses need to verify Bank Accounts?

Penny pull verification is done for numerous reasons but mostly to verify that the customer’s bank account is authentic and belongs to the customer signing up for the service before transacting on it (e.g., transferring money by businesses). In India, for many financial services involving bank account deposits (e.g., Mutual Funds, Insurance, Lending, etc.), verifying users’ bank accounts as part of KYC due diligence is a regulatory requirement.

4. What is the meaning if a Penny pull intent link status is 'Pending'?

Decentro passes back the status of a Penny pull intent link as 'Pending' in the GTS API if the link is not authorized and the amount (₹ 1) is not paid by the payer (customer).

5. What is the meaning if a Penny pull intent link status is ‘Success’?

Decentro passes back the status of a Penny pull intent link as ‘Success’ in the GTS API if the link is authorized and the amount (₹ 1) is paid by the payer (customer).

6. Is initiating the Intent link API for the same ‘reference_id’ possible?

No. It is not possible to initiate the Intent API for the same ‘reference_id’. You must pass a new ‘reference_id’ in the request body to initiate the Intent API.

7. Can I pass an amount apart from 1 INR as part of the flow?

No. It is not possible currently to pass an amount apart from 1 INR since the objective of this API is fetch the payer's bank account details.

Validate Bank Account FAQs

1. Who can use the bank account validation capability of Decentro?

Any business that has a requirement of validating a bank account of an user or 3rd party on their platform can use the capability.

2. Can I use both penny drop and penniless capability of Decentro?

Very much. Decentro's stack is designed in a way that can be leveraged to undertake either penny drop or penniless based validation.

3. Which banks are supported by penny drop?

Decentro's penny drop capability is supported by almost all the banks in India which has IMPS capabilities integrated at their end.

4. Does Decentro work with banks to provide these capabilities?

Yes. Decentro has partnered with multiple banks in the backend to power these capabilities to ensure performance is optimized for best experience.

5. Which banks are supported by penniless verification?

Decentro's penniless capability is supported by all the banks in India which has IMPS 2.0 capabilities integrated at their end.

6. What happens if the validation status is inconclusive, pending, or unknown? What further actions need to be taken

If the account status is inconclusive, this is due to technical errors from the banking partners who did not provide the correct status. The validation can be retried after some time. Any debts that have occurred will be reversed back to the virtual account after reconciliation from Decentro.

7. Where can i monitor the debits that have taken place from the validation?

Platforms can utilise Decentro's Account Balance callback for real-time updates on the debit and credits. Decentro also provides Get Statement API to fetch the list of transactions that have taken place. Alternatively, Decentro's Dashboard can be used to view the status of each validation and perform validation of bank accounts.

8. Are NRE/NRO accounts validated on Penniless and penny drop verification?

• NRE accounts cannot be validated using INR rails or APIs. Essentially, a penny drop or pennyless API hit on such accounts will fail and not give the name/data. However, it will inform in the response that this is an NRE account.
• NRO accounts behave exactly like regular Indian bank accounts. So you will get all regular details, including account holder's name, in the response, but it will not call out 'NRO' as a type separately.

UPI Collections

The FAQs in this sub-section pertain to the UPI Collections module

1. Who can use UPI for collections?

Any Indian business entity can use UPI to facilitate ad-hoc or one-time payments from its customers, vendors or any other player in their business ecosystem.

2. What are the benefits of using UPI for collections?

There are multiple benefits of UPI for collections like coverage across banks, ubiquitous knowledge from a customer perspective and more importantly, seamless customer experience

3. What are the primary use cases for UPI-based collections?

UPI-based collections are extremely convenient in powering use-cases like purchases, loan repayments, investments, and insurance premiums and offline use-cases like QR-based collections.

4. What is the customer journey for UPI-based collections?

UPI requires the payer to have UPI enabled on their mobile through a TPAP/PSP app like PhonePe, Google Pay, PayTm, etc. Payers can pay through any one of the below flows.

• UPI Deep links where the payment can happen from a specific UPI app on their mobile
• Generic payment link where the customer can choose the UPI app of their choice
• Collection Request where the payment can be done from a UPI app of the payer's choice
• QR-based payment through any preferred PSP app

5. Is UPI supported by all Remitter Banks?

Yes. UPI is supported by all commercial banks in India. The payer just has to register their account on a UPI app and start using to pay to merchants offline or online.

6. Can the UPI collections stack be set up on a platform's business account/s?

Yes. Decentro can power UPI collections on a current or a similar business account where Decentro already has integrations in place.

7. What is the maximum amount that can be deducted via UPI?

The maximum amount that can be debited via a single presentation depends on the PSP handle and the remitter bank (where the payer has a bank account). Typically, most banks support UPI debits of at least 1,00,000 INR/day with some banks supporting higher limits.

8. How are the funds settled to the beneficiary?

Decentro settles the funds to the registered beneficiary's bank account as per standard settlement cycles as agreed upon at the time of onboarding.

9. Does Decentro require a platform to use a virtual account for UPI collections as well?

Yes. Decentro uses the virtual account stack as a ledger account to maintain collections across different modes and transaction types at a single place. The platform can choose to create one or more virtual accounts and map the payment link to be generated against it.

10. Can the platform create the payer handle as per their naming convention?

Decentro follows a standard naming convention to be compliant with statutory guidelines set by NPCI (which regulates UPI) and its partner bank. Typically, the trade name or the legal name of the platform/merchant can be present in the handle.

11. Can a platform create payment links or collect requests using the Decentro dashboard?

Yes. Decentro has a readily available capability to generate payment links and collection requests through its dashboard which is shared post being onboarded.

12. How does the platform get to know the status of a UPI collection?

Decentro triggers a transaction status callback Transaction Status] to a pre-configured endpoint after the payment link/collect request is approved or rejected by the payer. In addition, Decentro also provides a Status Check] capability to check the status of a collection.

13. How do UPI deep links differ from generic payment links?

UPI deep links have a protocol for the key UPI apps which can be used by the platform to display the same on their app and the payer can choose to pay from a specific app. A generic payment link, however, allows the payer to choose the app of their choice to pay from.

14. What is the meaning if a payment link status is 'Pending'?

Decentro passes back the status of a collection as 'Pending' in the Check Payment Status API if the link or collect request is not authorized by the payer.

15. Does Decentro trigger a callback if the platform uses the Status check capability?

Decentro triggers a transaction status callback and account balance callback to the configured endpoints if a status check is done after the callback is triggered.

16. What is the minimum amount that can be deducted via UPI?

The minimum amount to use UPI collections API is INR 5. Amount less than INR 5 will not be supported either in payment link or collection request.

ENACH

The FAQs in this sub-section pertain to the ENACH module.

1. Who can use NACH for payments?

Any Indian business entity can use NACH to facilitate recurring payments from its customers, vendors or any other player in their business ecosystem.

2. What are the benefits of using NACH for payments?

NACH-based payments are very convenient when you expect to collect payments frequently over a long period of time, either at specified intervals or Adhoc for specific scenarios. Customers do not need to approve a transaction every time

3. What are the primary use cases for NACH-based payments?

NACH-based payments are extremely convenient in facilitating recurring payments like EMIs, subscriptions, expenses, etc. NACH settlement takes 1-2 working days but has higher amounts compared to UPI transactions.

4. What is the process flow for NACH-based payments?

NACH requires a customer (business or individual) to authorize a mandate digitally or physically one time by providing bank account details. Once the registration is successful, the platform can collect payments into their account.

5. How can NACH mandate be set up?

NACH mandates can be set up digitally if the customer’s bank is supported using either a Debit Card or Netbanking. Alternatively, the customer can authorize a mandate form offline by signing as per bank records.

6. What is the difference in the types of NACH mandates?

ENACH, also known as digital mandates is done via API and facilitated fully digitally at the time of registration. Physical NACH on the other hand requires the customers to sign the NACH form.

7. What is the maximum amount that can be deducted via NACH?

The maximum amount that can be debited via a single presentation depends on the amount and the frequency of the mandate registered. However, if the amount to be debited is higher than the registered amount, multiple presentations can be done.

ENACH supports maximum registration up to 10L and physical NACH supports up to 10CR.

8. Is NACH supported by all Banks?

NACH as such is supported by ALL banks that operate a payment system in India. You can find the list of banks supported here.

However, ENACH is supported by a specific set of banks ONLY. The list of banks live and at different stages of integration with NPCI can be found here.

9. What is the benefit of ENACH over physical NACH?

ENACH supports the very quick confirmation of registration and does not require any manual intervention like a physical NACH. In most banks’ cases, a mandate is confirmed within 1 hour.

10. How do we handle Adhoc presentations using NACH?

NACH - be it physical or ENACH allows the platform to set up payments with predefined frequency or Ad Hoc. By setting the frequency to Adhoc, the platform can present a mandate as per the business requirements.

11. Can the ENACH mandate be set up on business accounts?

Yes. Most banks accept ENACH where the current account is not owned by a company or is not a 2-FA account.

12. Does the platform need to open a new bank account?

No. We have partnered with a leading private-sector Bank and you can piggyback on Decentro’s utility code to collect payments. However, if you prefer to have the collections done directly to your account, you will need to set up a bank account with the banking partners Decentro supports.

13. Can NACH facilitate instant settlements?

No. NACH, unlike UPI or IMPS, is designed to facilitate recurring payments of higher value. It takes 1 working day for the payments to reflect in the credit account.

14. Can NACH registration fail for any reason?

Yes. ENACH registration can fail for many reasons like invalid account information, insufficient balance, blocked account, etc.

Physical NACH registration primarily fails due to a signature mismatch between the mandate form and the bank account.

15. What happens to the funds when a transaction "Fails" after the presentation was completed?

For all failed transactions, the amount is not settled with our Banking provider. In such cases, it is the responsibility of the Remitter bank to refund the amount to the customer.

16. What happens to a transaction when it is in a "Pending" state for more than 24 hrs?

Ideally, the pending status gets resolved within 24 hours. If you encounter such scenarios where transactions are in the pending state even after 24 hours, do not worry, please reach out to [email protected] with the transaction details.

Also, please note that the ‘Get Transaction Status’ API will not be able to update the status from the bank post 90 days of the transaction entry. It will basically get frozen and can only be updated post a manual check with the bank over email.

17. How can the NACH mandate be set up?

NACH mandates can be set up digitally if the customer’s bank supports either a Debit Card or Netbanking. Alternatively, the customer can authorize a mandate form offline by signing as per bank records. Decentro is also working to power the registration through Aadhaar-based e-sign.

18. What is the difference between physical and ENACH?

ENACH, also known as digital mandates, is done via API and facilitated fully digitally at the time of registration. On the other hand, physical NACH requires customers to sign the NACH form, which can be time-consuming, has much higher rejection rates, and requires considerable operational efforts.

19. Do all Banks support NACH?

NACH is supported by all the commercial banks that operate a payment system in India. The list of supported banks can be checked via our API.

18. Does the platform need to create a new utility code?

The platform can create a new utility code through Decentro or move an existing utility code to Decentro. Decentro will help the platform with the process and ensure a smooth and seamless go-live from an operational and technical perspective.

Enach Registration

1. Can the ENACH mandate be set up on business accounts?

Yes. Most banks that support ENACH allow registration where the current account is not a 2-FA account.

2. Does the platform need to open a new bank account for ENACH?

No. The platform can piggyback on Decentro’s PA escrow to collect payments, which is permissible per PA guidelines from RBI. However, if you prefer to have the collections done directly to your account, you must set up a bank account with the banking partners Decentro supports.

3. Can NACH registration fail for any reason?

Yes. ENACH registration can fail for many reasons, such as invalid account information, insufficient balance, blocked account, etc. This is in addition to scenarios like invalid netbanking credentials, debit card details, or an invalid OTP being entered.

4. What is the maximum period for which a NACH can be registered?

ENACH or even physical NACH can be registered for 40 years only. The platform needs to pass the end date in the request payload, as per the guidelines issued by NPCI.

5. Is an end date mandatory for registration?

Yes. Remitters can no longer register a mandate as 'Until Cancelled' and must provide a clear end date at the time of registration as per NPCI guidelines.

6. Is it possible to customize the mandate registration screen?

Decentro allows the platform to customize its UI template before redirecting to the NPCI portal, where the actual bank account details are entered. Decentro, however, cannot customize the NPCI screen.

7. What is the maximum amount that can be deducted via NACH?

The maximum amount that can be debited via a single presentation depends on the amount and the frequency of the mandate registered. However, multiple presentations can be made if the amount to be debited is higher than the registered amount.

NACH supports registration up to 1CR.

8. In what ways can a payer register a mandate?

Decentro powers ENACH through the following modes of authentication:

• Debit Card
• Netbanking
• Aadhaar
• PAN
• Customer ID

9. What does cancellation of a mandate mean?

Cancellation of a mandate results in the entire mandate being canceled and all subsequent presentations getting blocked. Cancellation can only be initiated by the payee, typically in lending-related use cases. Cancellation of a mandate cannot be undone, and the payer needs to register a new mandate.

10. What does amendment of a mandate mean?

Amendment of a mandate is required whenever there is a change in the mandate parameters, such as the amount, frequency, or date. This typically occurs when there is a change in the loan amount, tenure, or similar details. Amendment of a mandate requires the payer to go through the same experience as the registration flow.

11. What does the "Fixed" amount rule mean for mandates?

The "Fixed" amount rule means that the debit amount must be exactly the specified amount. The system will not allow debits that are more or less than this specified amount.

12. What does the "MAX" amount rule mean for mandates?

The "MAX" amount rule means that the debit amount can be less than or equal to the specified amount, but it cannot exceed the specified amount. This provides flexibility for debiting up to the specified limit.

Enach Presentations

1. How do we handle Adhoc presentations using NACH?

NACH - physical or ENACH, allows the platform to set up payments with predefined frequency or Ad Hoc. By setting the frequency to Adhoc, the platform can present a mandate as per the business requirements.

2. Can NACH facilitate instant settlements?

No. Unlike UPI or IMPS, NACH is designed to facilitate recurring payments of higher value. The payments take one working day to reflect in the credit account.

3. Can we present different amounts for each presentation?

Yes. Decentro allows the platform to present different amounts for each presentation if the mandate is registered with the amount type as 'Maximum'.

4. Can Decentro settle into any bank account after the presentation?

Decentro settles the funds to the relevant beneficiary based on the use case, which the platform will share before going live and after Decentro has approved the same following its due diligence.

5. Can Decentro settle to multiple bank accounts at an execution level?

Yes. Decentro allows the platform to settle funds into multiple bank accounts. However, this is subject to the use case and must comply with applicable guidelines.

6. Does the platform need to trigger any pre-debit notifications through Decentro?

No. ENACH/NACH requires the client to inform the payer of the debit at least 24 hours before the actual debit. This can be undertaken by the platform by communicating with the payer through SMS, email, WhatsApp, in-app notifications, or any other standard mode of communication.

UPI Autopay FAQs

The FAQs in this sub-section pertain to the UPI Auto-pay/UPI 2.0 capability of Decentro.

Overview

1. Who can use UPI Auto-pay for payments?

Any Indian business entity can use UPI to facilitate recurring payments from its customers, vendors, or any other player in their business ecosystem. This is in addition to regulated use cases like lending, investments, insurance, etc.

2. What are the benefits of using UPI-based payments?

UPI-based payments are very convenient when you expect to collect payments frequently over a long period, either at specified intervals or Adhoc for specific scenarios. Customers do not need to approve a transaction every time, which reduces operational overheads and the risk of a payer not paying on time. Additionally, the overall payment experience is seamless.

3. What are the primary use cases for UPI-based mandates?

UPI-based mandates are extremely convenient for recurring payments like EMIs, subscriptions, investments, savings, expenses, etc. UPI settlement takes 1–2 working days, and the payer cannot cancel the mandate, which is a major benefit in lending use cases.

4. What is the process flow for UPI-based payments?

UPI Auto-pay requires a customer (business or individual) to authorize a mandate digitally by providing a VPA or authorizing it through their preferred UPI app. Once the registration is successful, the platform can collect payments into its account through Decentro's platform.

5. How can the UPI mandate be set up?

UPI mandates can be set up digitally using any leading UPI apps such as PhonePe, Google Pay, Paytm, Amazon Pay, etc. Once set up, the platform can debit funds regularly with minimal hassles.

6. What is the difference between UPI and UPI Auto-pay?

UPI Auto-pay is built on top of the UPI platform and is designed for recurring payment use cases where the payer does not have to authorize every transaction, unlike standard UPI payments.

7. What is the maximum amount that can be deducted via UPI Auto-pay?

The maximum amount that can be debited via a single presentation without additional authorization by the payer is ₹15,000, as per NPCI guidelines. However, with additional authorization using the UPI MPIN, the platform can collect up to ₹1 lakh.

8. Do all Banks and PSPs support UPI Auto-pay?

UPI Auto-pay is supported by all leading PSPs and banks in the country. The complete list is available on the NPCI website.

9. What is the benefit of UPI Auto-pay over ENACH?

UPI Auto-pay is designed for a seamless registration flow with no manual intervention for debits up to ₹15,000. Additionally, UPI Auto-pay offers much broader coverage than ENACH because it is built on the UPI ecosystem.

Autopay Registration

1. Can the UPI based mandate be set up on business accounts?

Yes. Most banks that support UPI mandates allow registration where the current account is not a 2-FA account. UPI-based mandates can be used with any bank account linked to UPI.

2. Does the platform need to open a new bank account for UPI Auto-pay?

No. The platform can piggyback on Decentro’s platform to collect payments, which is permissible under PA guidelines. However, if you prefer collections to be settled directly into your own account, you must set up a bank account with one of Decentro’s supported banking partners.

3. Can mandate registration fail for any reason?

Yes. UPI mandate registration can fail for many reasons, such as an invalid MPIN, insufficient funds, or issues with the remitter bank.

4. Does the platform need to create a new VPA?

The platform can create a new utility code through Decentro. Decentro will onboard the platform and generate a VPA to ensure a smooth and seamless operational and technical go-live.

5. Can the payer choose any UPI app for registration?

Yes. If the intent flow is used, the payer can choose any supported UPI app for registration. The platform only needs to initiate the mandate registration request.

6. What is the maximum period for which a UPI Auto-pay mandate can be registered?

UPI Auto-pay mandates can be registered for a maximum period of 30 years, as per NPCI guidelines.

7. Is an end date mandatory for registration?

Yes. Remitters can no longer register a mandate as 'Until Cancelled' and must provide a clear end date during registration as per NPCI guidelines.

8. Is it possible to customize the mandate registration screen?

Decentro allows the platform to customize its UI template before redirecting users to the NPCI portal, where the actual bank account details and authorization are completed. However, the NPCI screen itself cannot be customized.

Autopay Presentation

1. How do we handle Adhoc presentations using Auto-pay?

Auto-pay allows the platform to configure payments with predefined frequencies or on an Adhoc basis. By selecting the Adhoc frequency, the platform can present mandates as required by the business.

2. Can UPI Auto-pay facilitate instant settlements?

No. UPI Auto-pay presentations follow the standard settlement cycle and the payments generally take one working day to reflect in the beneficiary's credit account.

3. Can we present different amounts for each presentation?

Yes. Decentro allows the platform to present different amounts for each presentation if the mandate is registered with the 'Maximum' amount type.

4. Can Decentro settle to any bank account after presentation?

Yes. Decentro settles the funds to the relevant beneficiary based on the approved use case shared by the platform before going live.

5. Can Decentro settle to multiple bank accounts at an execution level?

Yes. Decentro allows the platform to settle funds into multiple bank accounts. However, this is subject to the use case and applicable regulatory guidelines.