Upcoming changes to recurring transactions via credit cards and debit cards in India

Upcoming changes to recurring transactions via credit cards and debit cards in India

Starting in October 2021, regulatory requirements in India will apply to the processing of recurring transactions. The Reserve Bank of India has issued a directive that will affect purchases in India initiated via credit cards and debit cards for auto-renewable subscriptions. This directive requires banks, financial institutions, and gateways to obtain user approval by conducting transaction notifications, e-mandates, and Additional Factors of Authentication (AFA) before the transaction can be completed. As a result, some transactions that don’t meet these requirements will be declined by banks or card issuers. For more information and updates, see the Reserve Bank of India website.

If you offer auto-renewable subscriptions in your app, you can do the following to help prevent or resolve declined transactions on the App Store:

Promote paying with Apple ID. Users who pay with their Apple ID balance will not be impacted by these requirements at this time. Users can add funds to their Apple ID using most credit and debit cards, Net Banking, RuPay, and UPI.

Provide a billing grace period. Enable Billing Grace Period in App Store Connect so subscribers with declined transactions or other payment issues have time to update their payment information while retaining access to your app’s paid content. There won’t be any interruption to the subscription’s days of paid service or to your revenue if payment is successful within the grace period.

When an issue occurs, you can provide in-app messaging that lets the user know about it and mention available payment methods, such as Apple ID balance, so they can fix the issue and retain access.

Learn about enabling Billing Grace Period for auto-renewable subscriptions.