CURRENT AFFAIRS

Detailed explanation-1: -Mastercard today announced the enablement of recurring payments / standing instructions on its debit and credit cards.

Detailed explanation-2: -Recurring payment is a payment model where the customers authorize the merchant to pull funds from their accounts automatically at regular intervals for the goods and services provided to them on an ongoing basis.

Detailed explanation-3: -In the simplest terms, recurring payments (also known as subscription payments, automatic payments, or recurring billing) take place when customers authorize a merchant to charge them repeatedly for goods or services on a prearranged schedule (monthly, weekly, daily or annually).

Detailed explanation-4: -Examples include cable bills, cell phone bills, gym membership fees, utility bills, and magazine subscriptions. Recurring billing may also be referred to as automatic bill payment.

Detailed explanation-5: -You can use the recurring payment to set up the disbursements from a plan. A standing order is created on a recipient account with a plan payment agreement from the ordering party side. You can also use the recurring payment for contributions to the plan, whereby deposits are made on the plan clearing account.