Apple has stopped accepting payments via debit and credit cards for subscriptions and app purchases using Apple ID in India. This implies that you can no longer use your debit or credit card to purchase apps from the App Store, get Apple subscriptions such as Apple Music and iCloud+, or purchase any media content from Apple. This comes about as a result of the new auto-debit rules stipulated by the Reserve Bank of India (RBI) that came into effect last year.
The customers will now need to add money to their Apple funds - just like a prepaid card - which will deduct money from the account every month when the subscription renews. New iPhone or iPad users have to mandatorily create an Apple ID while setting up the device and they are also required to provide bank details.
Several Apple users have complained on Twitter about the removal of the credit and debit card option from the payment methods the company accepts in India. For users who already have a card added as a payment method to their account, they are also unable to initiate any fresh payments through their Apple ID as the company shows an error stating, "This card type is no longer supported.”
"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 said on its support page.
Apple’s support page further lists netbanking, UPI and Apple ID balance as the three payment methods currently available to receive payments in India.
In accordance with the new rules, merchants like Apple have to set up an e-mandate for customer cards. Customers are also required to use two-factor authentication and set up a fresh e-mandate for recurring payments. The rules also require customers to give their consent each time they need to pay a subsequent payment of above Rs 5,000.
The RBI’s auto-debit rules had kicked in from October 1, 2021, where it had stipulated that there will be no automatic recurring payment for various services like utility bills, phone recharge, DTH, etc. and additional factor of authentication (AFA) became mandatory.