- RBI Updated Rule Message Receiving Complaints About International Membership Cancellation
- RBI has extended the deadline for storing card data on file which has been finalized to June 30, 2022
- RBI suggested people use other payment options, such as EMIs and recurring e-money orders
After June 30, Indian customers will find it difficult to subscribe online to international magazines with their credit card. This will lead them to find another alternative mode to transact online, as companies have reported having difficulty storing the required information.
As tokenization standards for card transactions have a clock ticking, businesses need to partner with payment service providers to get the systems in place. This will help them to debit payments from customers’ cards without storing card information on their servers, thus allowing them proper safety and security for their online transactions.
In May 2022, Apple informed its customers that they would not accept Indian credit and debit cards for in-app purchases or subscriptions in the near future, in line with new RBI standards. Customers could use UPI mode for payment and could also store money in their Apple Wallet which could then be used for payments.
Not only Apple, but online subscription-based online services have faced the concerns of online subscription services. Also, many companies have this requirement where they have to save the card details even if the customer wants to make a one-time payment during the automated process.
Previously, some players including Google and streaming services offered the required workaround to follow card storage guidelines as they have a large Indian market.
Additionally, for some magazine and other content subscriptions, payments made in the future will be for online software services only, and users can also pay-as-you-go for some advertisements.
According to reports, RBI was said to have taken this tough stance after receiving complaints where canceling international subscriptions was a major challenge. Additionally, customers had to cancel their cards in order to stop the debits. The number of online transactions exceeded that of card-reading machines during the Covid wave.
For domestic payments, most Indian companies have achieved compliance. In December 2021, the RBI extended the period for storing map data on file which was finalized to June 30, 2022.
The RBI has suggested people use other payment options, such as EMIs and recurring e-money orders. Payment companies such as PayU, Worldline, Razorpay, PhonePe, Cashfree Payments, and Pine Labs have provided the bridge for these services between e-commerce businesses and banks.