Auto Debit Payment requires a user to sign a payment agreement (such as the three-party withholding agreement) with the merchant in advance. After that, when the user purchases merchandise on the merchant site, the merchant can deduct money from the user account directly by using an authorization token.
To use this payment solution, merchant needs to obtain the authorization in advance. Users need to sign a contract (such as the three-party withholding agreement) with merchant to authorize the merchant to obtain the authorization token. After that, the merchant can use the token to initiate the auto debit payment request.
The following figures illustrate that a Philippine user purchases goods in Apple's App Store and uses GCash for payment. Assume this user uses a native GCash app (the user has already downloaded the app, then opens the app).
Figure 1. Auto debit payment demo
This sample assumes that a Philippine user purchases goods in Apple's App Store and uses Gcash for payment:
- Louis, a Philippine user, chooses a product of 1000 PHP in the App Store and places an order. He then chooses GCash to pay.
- Louis is redirected to the GCash agreement page, where the authorization agreement is displayed.
- Louis completes the authorization and then returns to the App Store, where the authorization result and the linked GCash account is displayed.
- Louis 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 Auto Debit Payment service.
- PMP: A payment method provider. In Auto Debit Payment, PMP 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