Indian online merchants cannot store credit card information from 2022
Disclosure: I work for a fintech in India, specialized in card payment.<p>It seems here people see this rule as &quot;merchants can&#x27;t store card numbers any more&quot;. This is actually a lot more than that, this is the new rule: you cannot store card numbers for recurring payment. Even if you are PCI-DSS compliant. Even if you are audited by the RBI. Even if you&#x27;re sponsored by a bank. The only way to store a Visa number is to use the Visa tokenization service.<p>Now if you know a bit of the card payment industry, you will know that you <i>need</i> the card number just to process the payment, the refund, etc. So you still have to store the card number. And you can. You just can&#x27;t use it for recurring payment any more.<p>My personal take: Giving full control to Visa and Mastercard over their card numbers for recurring payment seems to be a nice transfer of power to these two giants. But the time scale has been very short (a few months only). So practically, most recurring card payments will stop working or be illegal in two weeks. This is will more or less break existing subscriptions working with cards.<p>India (the RBI at least) has been in a campaign for independence in the payment infrastructure. American Express[0], Diners[1], Mastercard[2] have been banned in India. Diners&#x27; ban has been lifted now, but still. Rupay is a failure with a market share of 0.34%[3] (in comparison UPI is at 37.73%), in spite of having <i>ZERO</i> MDR on debit transactions[4].<p>This change is not for the sake of security. You can have the best firewalls, cutting-edge HSM, security team and pass 12 audits a year. You will be allowed to save these card numbers but you won&#x27;t be able to authorized to use it for recurring payments. This is just a move against cards, and to promote UPI instead. By making recurring card payment a hindrance, more people will transition to UPI.<p>[0] <a href="https:&#x2F;&#x2F;www.americanexpress.com&#x2F;en-in&#x2F;company&#x2F;notice&#x2F;rbi-important-update&#x2F;index.html" rel="nofollow">https:&#x2F;&#x2F;www.americanexpress.com&#x2F;en-in&#x2F;company&#x2F;notice&#x2F;rbi-imp...</a>
[1] <a href="https:&#x2F;&#x2F;www.reuters.com&#x2F;article&#x2F;india-banking-american-express&#x2F;rbi-bans-amex-diners-club-from-issuing-new-cards-for-violating-data-rules-idINKBN2CA26T" rel="nofollow">https:&#x2F;&#x2F;www.reuters.com&#x2F;article&#x2F;india-banking-american-expre...</a>
[2] <a href="https:&#x2F;&#x2F;westfaironline.com&#x2F;138440&#x2F;mastercard-banned-from-new-card-issuances-in-india&#x2F;" rel="nofollow">https:&#x2F;&#x2F;westfaironline.com&#x2F;138440&#x2F;mastercard-banned-from-new...</a>
[3] <a href="https:&#x2F;&#x2F;www.npci.org.in&#x2F;PDF&#x2F;npci&#x2F;statics&#x2F;RETAIL-PAYMENTS-STATISTICS-Nov-21.xlsx" rel="nofollow">https:&#x2F;&#x2F;www.npci.org.in&#x2F;PDF&#x2F;npci&#x2F;statics&#x2F;RETAIL-PAYMENTS-STA...</a>
[4] <a href="https:&#x2F;&#x2F;economictimes.indiatimes.com&#x2F;opinion&#x2F;et-editorial&#x2F;stop-discrimination-against-rupay&#x2F;articleshow&#x2F;87724175.cms?from=mdr" rel="nofollow">https:&#x2F;&#x2F;economictimes.indiatimes.com&#x2F;opinion&#x2F;et-editorial&#x2F;st...</a>