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What is card autopay?
Autopay lets you authorize regular payments — such as subscriptions, utility bills or loan instalments — directly from your debit or credit card without manually approving each transaction. With a one-time setup, merchants can charge the agreed amount on scheduled dates, making recurring payments simpler and more reliable.
How it works under RBI guidelines
The central bank has updated rules to make autopay both convenient and secure. Key features include:
- Customer consent: You must give explicit permission for recurring charges and can cancel at any time.
- Authentication: Strong authentication and verification steps are required when setting up an autopay mandate.
- Limits and controls: There are safeguards around the amount, validity period and frequency of mandates to reduce misuse.
- Data protection: Measures such as tokenisation help prevent merchants from storing raw card details.
Debit vs. credit card autopay
- Debit cards draw funds directly from your bank account. Autopay on debit cards typically requires bank-level authentication and may include additional limits for security.
- Credit cards charge your card issuer, with the payment due on your billing cycle. This can be useful for cash flow management but still follows the same consent and verification rules.
Benefits for consumers and businesses
- Fewer missed payments: Recurring charges happen on time, which helps avoid late fees and service disruptions.
- Better budgeting: Predictable charges make cash flow planning easier for both households and companies.
- Reduced manual effort: No need to enter card details for every billing cycle.
- Streamlined collections: Businesses get reliable payment flows and lower friction in retaining subscribers.
How to set up autopay
- Choose autopay when paying a bill or subscribing to a service.
- Provide your card details and review the mandate terms — amount, frequency and validity.
- Complete the authentication steps required by your bank or card issuer.
- Save confirmation and monitor your account statements to ensure charges match the mandate.
Precautions and tips
- Review mandates regularly: Check the merchant name, amount and frequency to catch unexpected charges early.
- Use tokenisation: Opt for services that store tokenised card details rather than raw card numbers.
- Set alerts: Enable SMS or email notifications for every autopay debit.
- Know your rights: You can revoke consent and dispute unauthorised charges with your bank.
Autopay on debit and credit cards aims to balance convenience with consumer protection. By following RBI guidelines, users get a smoother payment experience while retaining control and oversight over recurring charges.