Auto Debit payment is a payment solution that allows merchants to make pre-authorised fund deductions from a user's account.
A user is first required to give consent to the merchant via a payment agreement, such as the three-party withholding agreement.
When the user purchases items on the merchant's site again, the merchant can deduct funds from the user's account directly by using an authorization token.
Subsequently, the merchant can use the token to initiate the auto debit payment request.
This is an example user journey of a consumer who uses GCash to pay for products in Apple's App Store:
Figure 1. Auto debit payment demo
This sample user journey assumes that the user has downloaded the GCash app:
- The user chooses a product priced at 1000 PHP in the App Store (merchant side), places an order, and chooses GCash as a payment method.
- The user is redirected to the GCash agreement page, where the authorization agreement is displayed.
- The user completes the authorization and returns to the App Store, where the authorization result and the linked GCash account is displayed.
- The user selects the GCash account to complete the payment. The App Store then returns the payment success result.
How it works
In Auto Debit payment, the following roles are involved:
- Customer: An individual or institution that uses the payment service.
- Merchant: A company or individual that trades on goods or services.
- Alipay: Alipay provides the Auto Debit payment service.
- Alipay+ MPP: Alipay+ Mobile Payment Partner. In Auto Debit, an Alipay+ Mobile Payment Partner is a digital wallet, such as GCash.
The following figures show the authorization and payment process flows of Auto Debit Payment.
Figure 2. Authorization flow
After the authorization is completed, the merchant can initiate the payment request with the access token.
Figure 3. Payment flow