Apple has stopped accepting payments for subscriptions via debit and credits in India. The development essentially means that customers will now need to add money to their Apple funds - similar to a prepaid card - which will deduct money from the account every month when the subscription renews.
Apple makes it mandatory for new iPhone or iPad users to create an Apple ID while setting up the device, and they are also required to provide bank details.
If customers want to renew or buy a subscription, say, Apple Music or Apple TV, the company offers its own payment gateway for the transaction. The transaction was earlier possible via debit or credit cards, or UPI.
Several Apple users have taken 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.
The users who already have a card added as a payment method to their account are also not able to make any fresh payments through their Apple ID as the company is showing an error saying, "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 detailing the update.
The regulatory requirements, which are essentially the new auto-debit rules that RBI implemented in October, are limiting Apple to receive recurring payments from users in India via credit and debit cards.
The change is also pushing the iPhone maker to accept transactions through UPI and netbanking — the two features that it had introduced for its users in the country last year.
If existing Apple iPhone users have already added their debit or credit details, the ‘Payment and Shipping’ section in the Settings menu shows “[card] not supported".
Through an Apple Support page updated on April 18, the company recommends users add funds to the Apple ID balance to continue enjoying subscriptions. The page notes:
“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. To continue enjoying your subscriptions, you can pay with your Apple ID balance. You can add to your Apple ID balance using App Store Codes, Net Banking, and UPI."
In February, Apple introduced a new Tap to Pay feature on iPhone. The new feature would let small businesses, large retailers use their iPhone to accept Apple Pay, contactless credit and debit cards, and other digital wallets through a simple tap to their iPhone.
No additional hardware would be required to make contactless payments. Apple said in a blog post that the Tap to Pay feature on iPhone will be available to the payment platforms, app developers to integrate into their apps. Apple partnered with the leading payment networks including Visa, Mastercard, American Express and Discover for the contactless payments feature.
The new rules require merchants like Apple to set up an e-mandate for customer cards. Customers also need 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, which makes it difficult for Apple to continue to support card payments.
