Using Debit Card For Recurring Subscription Payment

Whether it is entertainment, fitness programs, or even groceries – subscription services have revolutionized the way we access them. However, managing multiple recurring payments can get overwhelming. Thankfully, debit cards offer a secure and convenient way to automate the payment for all your subscriptions from one card.

In this guide, we shall understand the subscription payment in regard to guidelines in India, the benefits of using a debit card, and also answer some frequent questions.

RBI guidelines for subscription payment

Automated recurring subscription payment can be financially draining if you are not using the services frequently, and also opens doors for cyber-attacks. The Reserve Bank of India has taken note of because of the increasing number of subscription services in the country and has released some guidelines for payment. A key point here is automatic payments in India will be limited to ₹5,000 INR per transaction and must be notified 24 hours prior to each transaction via email or SMS.

So, your concern about overpayment or accidental subscription with a debit card is capped to a certain extent.

Benefits of using a debit card for a subscription

In addition to convenience and secure payment, using a debit card for subscription payments has additional benefits: 

1. Budget Control: Payments are directly debited from your bank account, helping you manage your budget and avoid debt.
2. Reward Programs: Some debit cards offer cashback or reward points when you opt for a long-term (like 12 months over 3 months) of recurring transactions.
3. No Debt Accumulation: Unlike credit cards, debit cards avoid the possibility of accumulating debt for subscriptions.

How to setup a subscription payment with a debit card?

Now, convinced of the advantages of paying all your subscriptions with a debit card, let’s understand how to set it up:

1. Subscription Provider's Portal: When signing up for a subscription, look for the payment options. Most platforms accept debit cards.
2. Enter Card Details: Enter your debit card information securely, including card number, expiry date, and CVV code.
3. Activate Recurring Payments: Choose the "recurring payment" or "autopay" option if available. This ensures automatic monthly deductions.

Best practices to pay subscription with a debit card

With your subscription payment sorted with a debit card, there are still some best practices to follow to ensure a stress-free renewal:

1. Set Up Alerts: Enable transaction alerts for your debit card to receive notifications of any payments made.
2. Update Card Information: Keep your card details up to date to avoid payment failures. This includes updating your card information if you receive a new card.
3. Be Aware of Renewal Dates: Keep track of renewal dates and cancel any subscriptions you no longer need before the renewal period.
4. Use Secure Platforms: Ensure the service provider’s payment gateway is secure and compliant with industry standards.
5. Limit Exposure: Consider using a virtual debit card for subscriptions to minimize risk and limit exposure in case of a breach.

In addition, you are advised to regularly review your bank statements to ensure all subscription charges are accurate and authorized.

Endnote

By understanding the RBI guidelines, recognizing the benefits, and following the best practices of subscription payment with a debit card, you can streamline your favourite services for a hassle-free experience. If you are on the lookout for a versatile debit card that can handle all your subscriptions, check out the 811 Debit Card by Kotak811.

FAQs

1. Can you get subscriptions with a debit card?

Yes, you can set up and pay for subscriptions using a debit card on most service platforms.

2. Is it safe to use a debit card for subscriptions?

Yes, it's safe to use a debit card for recurring subscriptions. Just make sure that you use secure platforms and monitor your account for unauthorized transactions.

3. Does getting a new debit card cancel subscriptions?

Yes, since the last debit card information stored on the subscription provider is no longer valid, it will automatically stop. To ensure a smooth recurring payment, update your new card information with each subscription service to avoid payment failures.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.