Grace periods and wallet payments ⁠— Apple and Zoom are reaching out to their customers ahead of the new rules for auto debit for online payments

• RBI’s new e-mandate for recurring payments will introduce new changes from October 1 onwards.
• Subscription for service or bills that have recurring payments will be affected.
• Here’s how Apple and Zoom plan to deal with the changes.

The Reserve Bank of India’s (RBI) guidelines for auto-debit transactions will be effective from October 1 onwards. Under the new mandate, any subscription service or bills that have recurring payments via cards will be affected. This applies to subscriptions for services, phone bills, utility bills and more.

While the details are still scarce on how different sectors that operate in auto-debit transactions are going to take on the hurdles coming in the way, Apple and Zoom seem to be reaching out to their customers to address their queries.

Apple offers subscription-based services like Apple Music and Apple One, and also hosts third-party services through the App Store.

Apple is advising clients to introduce a grace period for customers so that they have a few days to authenticate the payment, a source told Business Insider. The grace period option is available in the App Store.

Another option is to add money to one’s Apple ID just like we do on eWallets like Paytm and use that to pay for subscriptions without needing to go through the process manually to renew services or recurring payments.

Zoom has started informing customers about the new RBI e-mandate saying that customers may need to pay their invoice using the PayNow link or verify their card details. Zoom has a dedicated site with FAQs about the new e-mandate where it will update with more information on verifying the payment information.

Under the new mandate, subscriptions for any service that is below ₹5,000 will require customers to re-authenticate their payment details that include banking, card or unified payments interface (UPI), and validate it with a one-time password (OTP). Customers will also be informed 24 hours prior to the auto-debit along with an option to cancel the recurring payment.

As for recurring payments above ₹5,000, an additional authentication for the payment will be required. For this customers will have to approve the auto-debit which will arrive 24 hours prior to the deadline.

Since this affects multiple services that use recurring payments, the changes are expected to affect customers around the country. Customers are already being notified by their respective banks about the new changes. But there might still be confusion around how companies are planning to implement the new changes.

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