Economy

Following RBI restrictions, Google announces modifications to automatic payments in India: Here’s what you should do

As of January 1, 2022, Google has informed customers that it will no longer be able to store customer card details such as card number and expiry date in the current format. This is the situation because Google must adhere to the Reserve Bank of India’s (RBI) standards for Payment Aggregators (PA) and Payment Gateways (PG). The move is significant since many users have a credit card information preserved in their Google Work or Google Play accounts to make monthly payments for subscription-based services.

The change is related to the Reserve Bank of India’s new card storage regulations (RBI). The Reserve Bank of India (RBI) has mandated that no company or merchant, with the exception of card issuers and card networks, maintain card details — or card-on-file — as of January 1, 2022. (CoF). At the same time, it has increased card issuers’ use of CoF tokenization.

“As of January 1, 2022, no organisation in the card transaction or payment chain other than card issuers and card networks should possess actual card data.” “Any such data previously saved will be wiped,” the RBI stated in a circular. As a result of the new terms, several subscribers have had their monthly recurring payments refused or cancelled.
The requirements have also perplexed several businesses. Users who had their credit card information saved in order to pay for their Google One subscription or their Google Cloud work accounts may face new challenges as a result of this.

Google, on the other hand, has indicated that with the user’s agreement, they can save “card details in a way that complies with RBI regulations and keeps sensitive card details secret.” The actions that users must take to ensure that their card information is not wiped are as follows.

Here’s how to handle card information in Google Accounts.
Users will have to re-enter their card information and make at least one purchase or manual payment before the end of 2021 in order to continue making payments with the same Visa or Mastercard issued debit or credit card after December 31, 2021, according to Google.

“Your card will no longer appear in your account if you don’t,” the company said, “and you’ll have to re-enter your card info to use it again.”

“We won’t save your card information beyond December 31, 2021,” the company claimed, adding that “card storage as per the new format isn’t available for these card networks yet.” After January 1, 2022, you must provide card information every time you make a manual payment.”

Tokenisation is the process of substituting actual card details with a unique code known as a “token” for each card, token requestor, and device. It reduces the number of scams by sharing card details such as card numbers and CVV. At point-of-sale terminals, the token is utilised for contactless card transactions, quick response, and code payments.

In accordance with RBI guidelines, PhonePe has launched its SafeCard, a tokenisation solution for online debit and credit card transactions. PhonePe’s SafeCard makes recurring payments convenient and secure by allowing payment providers to save cards using tokens. This system supports all major card networks, including Mastercard, Rupay, and Visa.

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