Apple has stopped accepting credit and debit card payments for automatic renewal of services through Apple ID in India. The change is the result of a new auto-debit law passed by the Reserve Bank of India (RBI) which makes it mandatory for all financial institutions, banks, and gateways to get users’ approval before authorizing a transaction for auto-renewable subscriptions.
In October 2021, RBI passed the new regulatory rule to prevent fraudulent online transactions by implementing two-factor authorization and stopping automatic recurring payments. In addition, it forces merchants like Apple to set up an e-mandate for customer credit and debit cards.
Users will have to use their Apple ID balance to purchase apps and Services like iCloud+ and Apple Music in India
After the new auto-debit rules came into effect in India, the Cupertino tech giant allowed its users in the country to add funds/money to their Apple ID. The tech company also offered a 20% bonus as an incentive because it is the only way they will be able to purchase apps from the Apple Store and subscribe to its Services like iCloud+, Music, TV+ and others.
As spotted by The News Minutes, now users can not make fresh payments through their Apple ID and receive an error alert that their credit and debit cards are no longer supported. The company’s local support page lists Apple ID, UPI, and netbanking as the only payment options to pay for automatic subscriptions in India. The message on the support page reads:
“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.”
India has emerged as a lucrative market for the Cupertino tech giant. Starting with manufacturing iPhone SE (2020), the company now assembles iPhone 13 in the country for the local market. Therefore, it can be said that the iPhone maker will do whatever is necessary to retain its consumer base in India.
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