Lendsqr has built a comprehensive payment ecosystem that makes loan repayments easy for lenders and borrowers. Lensqr operates on a wallet-centric model where all repayments flow through borrowers’ internal wallets before being applied to outstanding loans. Understanding how these payment mechanisms work is essential for lenders to optimize their collection strategies.
This article explains how cards are stored and charged, which providers power each transaction, how repayments flow into the borrower’s wallet, what happens when payments fail or get stuck, and the safeguards that ensure the entire process is accurate and traceable.
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How do card payments work at Lendsqr?
Card payments serve as the default method for loan repayment. Borrowers enter their debit card details (card number, expiry, CVV) during the loan application or within their account settings. The bank associated with the card must match the bank account previously linked to the borrower’s profile. Once activated, Lendsqr automatically debits this card on due dates via integrated card processors. Funds collected are credited to the borrower’s virtual wallet before being applied to the loan schedules.
What payment providers does Lendsqr integrate with?
Lendsqr integrates with five main card payment providers: Paystack, Seerbit, Monnify cards, Stripe, and others. Additionally, for virtual accounts, it uses providers such as Paystack’s Titan, Wema, Sterling Bank, and Monnify. Direct debit payments integrate with NIBSS and Remita. This variety gives lenders flexibility in choosing payment processors based on their markets and preferences.
How does loan repayment work in Lendsqr?
Loan repayment always flows through the borrower’s internal wallet. Payments can be made through:
- Scheduled repayments (automated debiting of saved cards or direct debit mandates on due dates)
- Manual repayments (borrowers initiate payment via card, USSD, payment link, or wallet balance)
- Direct Debit repayments (mandate-based automatic collections authorized by the borrower’s bank)
The collected funds are first credited to the borrower’s wallet, then debited to settle outstanding loan amounts in the following priority order: penalties, fees, interest, and principal.
What happens if a card transaction is pending or stuck?
For stalled card transactions, check the transaction status within the admin console and reach out to support@lendsqr.com to investigate any pending transaction flags on the wallet and document findings in store procedures. Update the transaction status accordingly and adjust wallet balances if necessary to maintain accurate records.
What are the common issues borrowers face with loan repayments?
Wallet credited but repayment not applied: This can occur when liens on the wallet block debits. Clearing liens allows automatic application of repayment to loans.
Wallet funds not reflecting after wallet funding attempts: Sometimes webhooks fail, causing delays. Confirm receipt of funds with Mifos and resubmit webhooks from providers like Monnify or escalate for manual wallet funding if needed.
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How does direct debit repayment work?
Direct debit requires borrowers to authorize lenders to debit their bank accounts via a mandate during the loan application. Banks take 24-72 hours to review and approve mandates, often involving signature verification and phone confirmation. Once approved, repayments occur on due dates by sending debit instructions via NIBSS or Remita. Fees are deducted before settlement, and lenders receive net amounts on the next business day (T+1).
What fees does Lendsqr charge for payment processing?
For card and other transaction processing, Lendsqr charges ₦200 plus 2% of the collected amount, capped at ₦2,500. This fee is deducted before the net amount is settled with lenders. Direct debit transactions incur a 2% fee capped at ₦2,500.
How do lenders receive settlements?
Lenders are paid net amounts collected on their behalf through payment providers on a T+1 basis to their designated disbursement account. Lenders can request changes to their settlement accounts using the admin console or by contacting support@lendsqr.com
What are virtual accounts, and how are they used?
Virtual accounts are digital bank accounts generated by Lendsqr for borrowers and lenders. Borrowers can repay loans by transferring funds to their assigned virtual accounts, with the funds credited to their wallets instantly. Lenders use their virtual accounts to fund disbursement wallets.
What is the wallet-centric repayment principle?
All repayment amounts must first be credited into the borrower’s internal wallet before being applied to the loan. This system ensures accurate reconciliation and a clear allocation of repayments toward penalties, fees, interest, and principal.
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What is Lendsqr global payments?
Lendsqr Global Payments is an automated feature that uses a shared card network across lenders in the Lendsqr ecosystem. If a primary card payment fails, the system automatically retries using other cards linked to the borrower from different lenders.
What steps are needed for a lender to set up direct debit collections?
Lenders must activate direct debit as a repayment option on their loan products via the Lendsqr admin console. Borrowers then authorize mandates during the loan application, which banks review before approval. Lenders receive direct debit collections via NIBSS or Remita, ensuring secure and timely loan repayments.
Can third parties make loan repayments on behalf of borrowers?
Yes, Lendsqr allows loan repayments via secure payment links that can be shared with third parties such as family members or employers.
What are the common causes for direct debit mandate rejections by banks?
Mandates may be declined if accounts are dormant, borrowers cannot be reached for confirmation calls, or signatures do not match bank records. Borrowers should verify account status and provide accurate signatures to avoid delays.
What is the process for investigating and resolving payment disputes?
Lenders can contact Lendsqr’s dedicated support team to report disputes or failed transactions. The team works with payment processors and internal systems to resolve issues, update transaction statuses, and ensure correct wallet and loan balances.
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Conclusion
Getting started with Lendsqr’s payment solutions is straightforward, and you don’t have to navigate it alone. Whether you’re experiencing challenges with pending transactions, need guidance on setting up direct debit mandates, or want to explore virtual accounts, the support team is ready to assist. Every minute spent resolving payment issues is time lost from growing your lending business and serving your customers better. Don’t let payment complications hold back your growth or damage borrower relationships.
Are you ready to optimize your payment collections? Contact support@lendsqr.com for personalized assistance with your payment setup, troubleshooting, or any questions about maximizing your collection efficiency.
