Why did Apple stop debit and credit card payments in India?

Apple recently stopped accepting credit and debit card payments for subscriptions and app purchases using Apple ID in India. Now Apple users will need to update their payment methods for recurring payments to continue.

The company recently said that if users want to continue enjoying their subscriptions, they will have to add funds to their Aple ID balance.

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“To continue enjoying your subscriptions, you can pay with your Aple ID balance. You can add to your Apple ID balance using App Store Codes, Net Banking, and UPI,” it added.

Aple also said that users can also add funds automatically to their Apple ID balance by setting up Auto Reload, the company said.

Why did Apple stop debit and credit card payments in India?

The news follows the Reserve Bank of India`s (RBI) announcement last year about the two directives – one, on auto-debit mandates and the second on card tokenisation.

“Regulatory requirements in India apply to the processing of recurring transactions. If you hold an Indian debit or credit card and you have a subscription, these changes impact your transactions. Some transactions might be declined by banks and card issuers,” the company had said in a blog post.

According to media reports, users must now approve recurring transactions like subscriptions using “Additional Factors of Authentication (AFA)” as a result of the new rules. The transaction will be refused if it is not approved via AFA.

The new rules also state that Apple has to set up an e-mandate for customer cards, reports 9To5Mac.

Apple customers in India will need to use two-factor authentication and set up a new e-mandate when issuing recurring payments. They will also need to give consent for each purchase above Rs 5,000.

In an email to users, Apple said, “Due to the RBI regulations, Apple Search Ads will soon no longer accept payments from credit cards issued by banks in India.” The company also said, all campaigns using a credit card issued from Indian banks will be placed on hold from June 1.

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In another move that will become effective from July 1 onwards, any company storing card details of users on their websites or apps will have to purge those details.

Millions of users could be impacted by this if the online players and merchants are not able to implement the changes at their backend.

(With agency inputs)

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