Apple stops accepting debit cards, credit cards for subscriptions and app purchases in India

Apple has stopped accepting card payments for subscriptions and app purchases using Apple ID in India. This means you can no longer use your Indian credit or debit card to buy apps from the App Store, get Apple subscriptions like iCloud+ and Apple Music, or buy media from Apple. The change came in the wake of new Reserve Bank of India (RBI) direct debit rules that came into force last year and are disrupting recurring online transactions.

Multiple Apple Users took to Twitter to complain about the removal of the credit and debit card option from the payment methods Apple accepts in India for purchases using Apple ID. Users who have already added a card as a payment method to their account are also unable to make new payments via their Apple ID because the company shows an error saying “This type of card is no longer supported”.

Apple’s support page listing the payment methods available in each country it operates in shows that the company currently only supports netbanking, UPI, and Apple ID balance as three options for receiving payments. payments. The change took place in April — April 18, to be precise — according to another support page on the Apple site.

“Regulatory requirements in India apply to the processing of recurring transactions. If you hold an Indian debit or credit card and have a subscription, these changes impact your transactions. Some transactions may be declined by banks and card issuers,” the company said on its support page detailing the update.

The regulatory requirements, which are essentially the new direct debit rules implemented by RBI in October, limit Apple to receiving recurring payments from users in India via credit and debit cards. The change also pushes the iPhone maker to accept transactions via UPI and netbanking – the two features it introduced for its users in the country last year.

The new rules force merchants like Apple to set up an e-mandate for customer cards. Customers must also use two-factor authentication and set up a new electronic mandate for recurring payments. The rules also require customers to give their consent whenever they have to pay any subsequent payment above Rs. 5,000. Moreover, the processing of the systems with the given requirements are yet to be updated to a large extent. All of this makes it difficult for Apple to continue supporting card payments.

However, Apple is not alone in changing its payment mechanism. Google is also one of the companies most affected by the RBI update. Many of its users face difficulties in making recurring payments and purchases through their cards on Google Play and YouTube. The company is also unable to process Google Workspace transactions for many users due to restrictions.

Similarly, Netflix last year introduced UPI AutoPay support for recurring payments on its platform – as a remedy to avoid problems with direct debit rules.

The National Payments Corporation of India (NPCI) introduced the UPI AutoPay feature in 2020 to enable automatic debiting of recurring payments. This provides an important reason for companies such as Apple and Netflix to favor the local interface over traditional cards.

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