Direct Debit is quickly becoming the go-to method for businesses to collect recurring payments from customers. And it’s easy to see why. Unlike alternative payment methods like cards that can get missing or outdated, resulting in high failure rates, Direct Debit is simple, automated, and efficient.
By automatically pulling payments from customers’ bank accounts at an agreed time, Direct Debit ensures businesses get paid on schedule without customers having to manually enter card details or initiate bank transfers.
This is why businesses, from subscription services to lenders, are switching to Mono Direct Debit to streamline their payment collections. But as with anything that involves a bank account, safety becomes the first question on everyone’s mind: “Is it secure?”
How we made Mono Direct Debit safer for users
At Mono, we’ve built Mono Direct Debit with security and transparency at its core, without compromising the smooth experience that businesses and their customers expect.
Here’s how we make Mono Direct Debit not just better, but safer:
User consent comes first
No direct debit on Mono happens without the customer's full approval. Every mandate is authorized by the customer and can be revoked at any time, keeping them in full control. To give consent, the user authenticates the direct debit mandate using their BVN, which is matched to their account number to confirm ownership and then the bank approves the mandate before any debit transaction occurs.Small deposit authorisation
As an added layer of verification, every mandate setup requires the user to send a small ₦50 token from their account to a NIBSS-approved account. This helps to verify that you own and have access to the linked bank account, and that you are the rightful owner authorizing both Mono and the business to initiate debits.It’s a simple but effective way to confirm account ownership and ensure that only authorised users can set up mandates, adding one more layer of security to the Direct Debit process.
Bank-level security
Data security is a top priority at Mono. We use bank-grade encryption to protect customer data from the moment an account is connected to when a payment is processed. All information is encrypted both in transit and at rest, keeping sensitive details secure every step of the way.
And because security standards are always evolving, we also run regular audits and compliance checks to ensure our systems meet the highest benchmarks.
Transaction limits for extra safety
To add an extra layer of protection, Mono enforces transaction limits on Direct Debits based on the customer's account type. These limits reduce the risk of unauthorized or accidental debits and give you confidence that large sums can’t be withdrawn unexpectedly.
Businesses that need higher limits can request an increase through a simple verification process, but by default, these limits are in place to ensure safer usage for everyone. You can find about transaction limits here.
Transparent authorization flow
We’ve designed the Mono Direct Debit authorization flow to be clear from start to finish. Customers see exactly who they’re authorizing, how much will be debited, how often, and for what reason. No hidden terms, no small print.It’s a simple, transparent experience that builds trust from the very first step. Curious to see how it works? Take a look at the e-mandate authorization flow on Mono Direct Debit.
Protection against risk of fraud
When a debit transaction happens, our systems usually work in the background, to automatically spot and flag any suspicious activity — like unusual debit patterns or multiple failed attempts — and can trigger additional checks or block the transaction entirely.
This helps reduce fraud risk for your business and gives your customers more confidence to pay recurring bills with Mono Direct Debit.
Real-time notifications
Customers are never left in the dark. Mono sends instant real-time notifications whenever a direct debit transaction is scheduled or successfully processed, so you know exactly what’s happening with your account. This not only builds trust but also enables you to monitor every transaction as it happens.
Why Mono Direct Debit is the preferred payment method
For users:
Direct debit payments is secure, easy to authorize, and just as easy to deactivate. They don’t need to manually enter card details each time they want to set up a recurring payment schedule, or worry about missing a payment on the agreed date. Once the mandate is active, payments run uninterrupted.
For businesses:
Mono Direct Debit reduces failed payments, improves cash flow, and gives customers a more secure and seamless recurring payment experience. Payments are also fast, compliant, cost-effective, and doesn’t come with the hidden charges or risks that card payments often bring.
Here’s how it compares:
| Feature | Card Payments | Mono Direct Debit |
|---|---|---|
| Success rate | 75-80% average | 85%+ with payment retrial system |
| Transaction fees | 2-3.5% + N100 - N200 per transaction | A flat N55 fee for transactions between N200 - N20,000, and a 1% fee (capped at N1,000) for transactions above N20,000. |
| Chargebacks | High risk (up to 6 months after purchase) | Significantly reduced with proper authorization |
| Fraud risk | High (card details can be stolen) | Low (requires account authorization from the customer and their bank) |
| Setup complexity | Simple setup but requires manual input when card expires | One-time easy setup |
| Customer experience | Interruptions happens when cards expire or get missing | Payments are uninterrupted once mandate is active |
For businesses seeking a better way to collect automated, recurring payments from customers, Mono Direct Debit offers both ease and security. From putting user consent first, to setting fraud protection tools in place, Mono Direct Debit ensures that the payment experience is safe for customers and helps businesses collect scheduled payments with less friction and better success rates.
If you need a Direct Debit provider that’s efficient, reliable, and secure, you can sign up on Mono to get started and explore our integration guides at mono.co/docs.
