Discussion RBI restricts online merchants and payment aggregators from storing card details of users

[Esmail]

India’s apex banking institution has issued new guidelines dictating that online merchants, e-commerce websites and payment aggregators — this includes everyone from Amazon to Flipkart to Google Pay to PayTM to Netflix — will no longer be allowed to store debit and credit card details of a customer online. According to the RBI’s circular, these new guidelines will come into effect starting July 2021. This means that rather than just having to enter your CVV to make a payment, you’ll have to enter all your card details — name, card number and expiry date — from scratch every time you want to make an online payment. This is aimed at reducing online financial thefts which are rising rapidly.

 

[iDJ]

Excellent move. Specially for sites who makes it complicated to remove card details.

Will this prevent auto renewal of subscriptions?

 

[Esmail]

Will this prevent auto renewal of subscriptions?

In all likelihood, yes, and that will be a major concern for services like Netflix which don't have an annual plan and need a monthly renewal.

 

[kanagadeepan]

In all likelihood, yes, and that will be a major concern for services like Netflix which don't have an annual plan and need a monthly renewal.

That's actually a good news in disguise, imho. They may bring somewhat cheaper annual subscriptions like Prime Video..

Few more effects, I can guess are :-
[1] Card transactions will decline and UPI may rise more..
[2] Flash sales with card offers will become a roller-coaster ride or most probably fk and amazon may allow us to have items in cart fro few minutes like earlier (which is good), else flash sales will move towards COD.
[3] No need to fear about data leak by PG or other online shops.
[4] Card on delivery may get second life, for less cash handling or fake notes or even change issues.

 

[IndiaN]

That's actually a good news in disguise, imho. They may bring somewhat cheaper annual subscriptions like Prime Video..

Few more effects, I can guess are :-
[1] Card transactions will decline and UPI may rise more..
[2] Flash sales with card offers will become a roller-coaster ride or most probably fk and amazon may allow us to have items in cart fro few minutes like earlier (which is good), else flash sales will move towards COD.
[3] No need to fear about data leak by PG or other online shops.
[4] Card on delivery may get second life, for less cash handling or fake notes or even change issues.

Amazon Still have 15 minutes for payments if we add to cart in flash sale or normal but flipkart don't

 

[Ashok Varma]

In all likelihood, yes, and that will be a major concern for services like Netflix which don't have an annual plan and need a monthly renewal.

It will affect on mail/cloud storage subscription (google/apple) on monthly basis.

 

[kanagadeepan]

All such companies using monthly schemes for trial like purposes (or say having doubt wrt real world xp and not ready to commit fully), except NetFlix and their annual subscriptions are more vfm and for those who are committed to use those services for long term, imho....

Those companies (Netflix) who want to milk customers monthly (taking advantage of charging stored CC) with bare minimum to no benefit in annual subscriptions have to change now.

 

[saketk11]

India’s apex banking institution has issued new guidelines dictating that online merchants, e-commerce websites and payment aggregators — this includes everyone from Amazon to Flipkart to Google Pay to PayTM to Netflix — will no longer be allowed to store debit and credit card details of a customer online. According to the RBI’s circular, these new guidelines will come into effect starting July 2021. This means that rather than just having to enter your CVV to make a payment, you’ll have to enter all your card details — name, card number and expiry date — from scratch every time you want to make an online payment. This is aimed at reducing online financial thefts which are rising rapidly.

this action make prompt reaction.

Mr Mobikwik, (mobi D!(K) has immediately given news that , they will deduct balance from non-active users.