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Google announces changes for automatic payments in India after RBI rules: Here’s what to do

Google has informed users that from January 1, 2022, it will not be able to save customer card details like card number and expiry date in the current format.

By: Tech Desk | Pune |
Updated: December 1, 2021 1:17:35 pm
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Google has informed users that from January 1, 2022, it will not be able to save customer card details like card number and expiry date in the current format. This is because Google has to comply with the Reserve Bank of India’s (RBI) guidelines for Payment Aggregators (PA) and Payment Gateways (PG). The change is significant because many users have a card number saved to their Google Work account or Google Play account to make monthly payments for subscription-based services.

The change comes due to Reserve Bank of India (RBI) new card storage regulations. The Reserve Bank of India (RBI) has directed that no entity or merchant, other than card issuers and card networks, should store card details — or card-on-file (CoF) — from January 1, 2022. Simultaneously, it has also extended tokenisation of CoF by card issuers.

“With effect from January 1, 2022, no entity in the card transaction or payment chain, other than the card issuers and card networks, should store the actual card data. Any such data stored previously will be purged,” the RBI had said in a circular. The new rules have also meant that many users have seen their monthly recurring payments get declined or cancelled.

The guidelines have caused confusion for many businesses as well. For users who had their card information saved in order to pay for their Google One subscription or their Google Cloud work accounts, this could pose new problems.

However, Google has said that with the user’s authorisation, they can save the “card details in a format that complies with RBI regulations and keeps sensitive card details secure.” Here’s what users have to do in order to ensure that card information does not get deleted.

Here’s what to do for card information on Google Accounts

Google says that in order to continue using the same Visa or Mastercard issued debit or credit card to make payments after December 31, 2021, they will have to re-enter their card details and must make at least one purchase or manual payment before the end of 2021.

“If you don’t do so, your card will no longer appear in your account, and you’ll have to re-enter your card details to use it again,” the company added.

Meanwhile, for RuPay, American Express, Discover, or Diners Card users, the company noted: “We won’t store your card information after December 31, 2021, as card storage as per the new format isn’t supported for these card networks yet. By January 1, 2022, you must provide card details every time you make a manual payment.”

Tokenisation refers to the replacement of actual card details with an alternate code called the “token”, which will be unique for a combination of card, token requestor, and device. It reduces the frauds that occur by sharing card details like card numbers and CVV. The token is used to perform card transactions in contactless mode at point-of-sale terminals, quick response, and code payments.

A few weeks ago, PhonePe, in accordance with RBI’s guidelines, announced the launch of its SafeCard— a tokenisation solution for online debit and credit card transactions. PhonePe’s SafeCard will make recurring payments convenient and safe, by allowing payment providers to save cards using tokens. This solution supports all major card networks such as Mastercard, Rupay, and Visa.

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