Navigating RBI’s Auto-Debit Restrictions: Three-Step Guide for SaaS Sellers

The RBI decided to cap auto-debit limits at Rs 15,000 (up from Rs. 5,000), thus creating a certain surprise effect throughout the seller community as it is going to affect businesses in different ways which we will uncover in the sections below.

Now, let's peel back the layers and figure out how to turn this regulation into a possible opportunity.

Why Should SaaS Sellers Be Concerned?

Picture this: for transactions under Rs. 15,000, you can still auto-debit, but only if you give your customers a 24-hour heads up via email or SMS. If the transaction is more than or equal to Rs. 15,000, it's secured with OTP every single time. Unaware customers might assume auto-debit is cruising along smoothly, forgetting to pay manually and eventually leading to canceled accounts. This is the exact cue for increased customer churn.

And for those who haven't invested in Payment Gateways, get ready for the working capital rollercoaster. About 13% of the capital might decide to take an impromptu vacation, courtesy of increased overhead costs from playing catch-up with customers for the payments.

Three Ways to Overcome Auto-Debit Hurdles

Establish Timely Payments with Customers:

Imagine a world where you and your customers are facing payment issues, thus creating problems from both ends. The best solution is to educate the customers on the simplicity of manual and timely payments. Aware them about his and watch the collection process become a seamless tango.

Diversify Payment Options:

Do not offer limited payment options. Offer a buffet of payment options – credit/debit cards, net banking, UPI, and digital wallets. It's time to be the maestro of payment choices. Once the customers have a choice, the decision making becomes easier, thus ensuring timely payments.

Implement BNPL Tools Like SaaSPay’s Flexi Pay:

Break free from the auto-debit shackles with SaaSPay’s Flexi Pay. Integrate it into the Payment Gateway, and you are all set to offer your customers a magic trick for seamless payments. They will have the option to opt for monthly payments against the full invoice amount paid upfront by SaaSPay’s FlexiPay.

How does SaaSPay’s FlexiPay Eliminates Auto-Debit Limitations & Reduces Churn?

SaaSPay’s Flexi Pay isn't just a feature; it's a seller's secret weapon. Here's a glimpse into the treasure trove of benefits it brings:

Think of a time where you don't have to chase payments and customer churn is just a term from the past. SaaSPay's Flexi Pay isn't just a solution; it's the hero in this tale. Integrate it into the Payment Gateway to offer customers the Pay Later option during checkout, and watch the magic happen. Monthly payment flexibility for them, and you get your forecasted annual revenue on day one. It's financial alchemy at its finest.

How does SaaSPay’s Flexi Pay Integrate with the Payment Gateway?

Now, let's pull back the curtain on the magic trick – how SaaSPay seamlessly integrates with Payment Gateway to make all these wonders happen:

Enable the SaaSPay (Pay Later) Option on the payment gateway:

It's as simple as flipping a switch. By enabling the Pay Later option on Payment Gateway, customers get to access payment flexibility.

Customers Choose SaaSPay on Checkout for Monthly Payment Flexibility:

At the checkout stage, customers are presented with a choice of flexible payments. If they Opt for SaaSPay, they unlock the ability to pay on a monthly basis, aligning payments with their financial comfort zone.

SaaSPay Manages Timely Collections:

No need to set up a collection command center to chase payments round the clock. SaaSPay takes care of everything, ensuring timely collections from your customers.

Conclusion

Auto-debit restrictions might seem like hurdles, but with SaaSPay’s FlexiPay, they're just bumps on the road. Timely payments, reduced customer churn, and getting your full invoice amount on day one – that's the SaaSPay promise. So, as you navigate these auto-debit regulations, let SaaSPay be your guiding star, making the journey smoother and more profitable. Happy selling!