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You cannot pay from your debit and credit cards for any online subscriptions after 20 June, know why

Apple informed its customers in May 2022, that they will not accept Indian credit and debit cards for app purchases or subscriptions in the near future, as per the new norms from the RBI. Customers could use the UPI mode for payment and could also store money in their Apple wallet which could further be used for payments. 

Saumya Nigam Reported by: Saumya Nigam Noida Published on: June 08, 2022 14:24 IST
credit card, wallet, upi, rbi
Image Source : FREEPIK

You cannot pay from credit card for your e-subscriptions after 20 June, know why

Highlights

  • RBI updated the rule post receiving the complaints regarding cancelling international subscription
  • RBI extended the deadline for storing card on file data which was finalised to June 30, 2022
  • RBI has suggested people use other payment options, such as EMIs and recurring e-mandates

After June 30, Indian customers will be facing trouble to e-subscribe the international magazines from their credit cards. This will lead them to find another alternate mode to do online transactions, as the companies have reported facing trouble in storing the required information. 

As tokenisation norms for card transactions have a countdown running, the companies have to tie up with payment service providers to put the systems in place. This will help them debit payments to the customers' cards without storing the card information on their servers, enabling them with proper security and safety for their online transactions.

In May 2022, Apple informed its customers that they are not accepting Indian credit and debit cards for app purchases or subscriptions in the near future, as per the new norms from the RBI. Customers could use the UPI mode for payment and could also store money in their Apple wallet which could further be used for payments. 

Not only Apple but online subscription-based online services have been facing the concern related to online based subscription services. Also, many firms have this requirement where they have to save the card details even if the customer would like to make a one-time payment during the automated process.

Earlier, there were some players - including Google and streaming services who came up with the required bypass to follow the card storage guidelines as they have a sizeable Indian market. 

Moreover, for some magazine and other content subscriptions, the payments made in the future will be online software services only and users can also pay-as-you-go charges for some advertisements as well.

As per the reports, it was stated that RBI took this tough stance post receiving the complaints where cancelling the international subscriptions was a major challenge. Also, customers were to cancel their cards in order to stop debits. The number of online transactions outstripped the card-swipe machines during the Covid wave. 

For the domestic payments, most Indian companies have achieved compliance. In December 2021, the RBI extended the deadline for storing 'card on file data which was finalised to June 30, 2022. 

The RBI has suggested people use other payment options, such as EMIs and recurring e-mandates. Payment companies such as PayU, Worldline, Razorpay, PhonePe, Cashfree Payments and Pine Labs have provided the bridge for these services between the e-commerce firms and banks.

 

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