How to Stop Recurring Payments on a Debit Card?

There can be times when you’d like to stop recurring payments on your Debit Card. Check out this post to learn how you can do it successfully.Setting up recurring payments on your Debit Card is a smart way to automate regular payments. You can use it for your loan EMIs, insurance premiums, OTT subscriptions, utility bills, and more. But while starting the Debit Card payment is easy, many people get confused when it comes to stopping such payments, especially after the 2021 RBI guidelines on auto-debit.

Here’s everything you should know about recurring payments on Debit Cards and how to stop this facility-

Recurring or automatic Debit Card payments eliminate the need for cardholders to process periodic and repetitive payments manually. Opting for recurring payments allows the service provider or business to debit the amount from your bank account linked to the Debit Card.

For instance, if you set up automatic payments on Debit Card for your telecom service provider, the monthly bill will be debited from your account on a fixed date every month. But to add an extra layer of security for such payments and prevent fraud, the RBI introduced new guidelines in 2021. 

Auto-debit payments can be divided into two categories- Fixed and Variable.

• Fixed Recurring Payments

The fixed recurring payments are ones where the billed amount remains the same. For instance, OTT subscriptions and gym memberships generally have the same monthly payment.

• Variable Recurring Payment

In these transactions, the bill amount varies. For instance, utility bills depend on usage and vary every month. However, you can set the maximum limit for such payments.

There can be times when you’d want to stop a recurring payment. For instance, if you’re switching to a new telecom service provider or cancelling your OTT subscription, you’ll have to cancel the recurring payment so that you don’t get billed anymore.

You can stop recurring payments on a Debit Card by contacting the service provider, merchant, or business for whom you’ve activated automatic payments. You can also inform the same to your bank to ensure the payment does not get processed.

• Stopping Recurring Payments Via Service Provider

You should get in touch with the service provider or merchant who is billing you at least 2-3 days before the scheduled payment to cancel automatic payments. Most such businesses now have mobile apps or online platforms from where you can conveniently cancel such automatic payments.

• Confirm Cancellation with Your Bank

Once the payment is stopped from the service provider’s platform, you can also confirm the cancellation with your bank. Provide details of your correspondence with the service provider to your bank for revoking or stopping such payments.

To prevent Debit Cards payment fraud and offer more convenience to customers, the RBI introduced new auto-pay norms in October 2021. According to the new guidelines-

• Banks must send automatic payment notifications to customers 24 hours in advance for transaction approval. The payment will only be processed after customer authentication. Such notifications are compulsory for transactions of INR 5,000 and above.
• If the recurring payment is up to INR 5,000, the customer should complete a one-time registration when activating auto payments.
• The new guidelines don’t apply to the standing instructions you might have given to your bank for payments like Loan EMIs or Mutual Fund SIPs. 

The new RBI guidelines are a step in the right direction in preventing Debit Card fraud. AU Small Finance Bank's banking infrastructure complies with the new RBI norms to offer enhanced safety to customers. For added protection, the Debit Cards from the bank come with a host of features, including Card Liability Cover, Purchase Protection, Personal Accident Cover, and more.

Check the features and benefits the bank offers when applying for Debit Card online to ensure you choose a card that best meets your banking needs.