Blocking a debit card may not be enough to stop recurring subscription payments. While a transaction attempted on a blocked card may fail, the e-mandate authorising recurring payments can remain active. Depending on how the mandate is handled when the card is reissued, payments may resume even after the customer starts using a replacement card.
The distinction matters for customers paying for streaming platforms, app subscriptions and other services through automatic debits. Blocking a card, cancelling a subscription and withdrawing an e-mandate are three different actions. Adhil Shetty, CEO of BankBazaar, said customers should not rely on blocking or cancelling a card alone to stop recurring payments.
A separate payment authorisation can also keep a subscription running. For instance, blocking a debit card will not necessarily stop a streaming subscription if the customer has authorised its payments through AutoPay. The payment channel and the status of each mandate determine whether a recurring debit can continue.
Why blocking or replacing a card may not stop subscriptions
Blocking a debit card does not automatically withdraw the recurring payment authorisations registered on it. Shetty said the RBI framework permits existing card mandates to be mapped to reissued cards, which means closing or replacing a card may not be enough to stop .
“If the existing mandate is mapped to a replacement card, a subsequent payment may be processed under that mandate. If it is not transferred, a fresh authorisation may be required,” he said.
A failed payment also does not automatically terminate the mandate. Whether the merchant retries the payment depends on its payment arrangements, Shetty said. The RBI framework requires a pre-debit notification at least 24 hours before a scheduled debit, allowing customers to review the details and opt out of a transaction or withdraw the mandate through the prescribed process.
Customers should therefore distinguish between a failed payment and a cancelled subscription. A payment may fail because the card is blocked, while the subscription and its underlying authorisation remain active.
How to stop recurring payments permanently
Customers who want to discontinue a subscription should cancel the plan with the merchant and separately withdraw the associated e-mandate through their bank or payment provider, Shetty said.
This is particularly important if the customer has authorised payments through more than one channel. A card-based e-mandate and a UPI AutoPay mandate are separate authorisations, so blocking a debit card will not necessarily stop payments authorised through UPI AutoPay.
Customers should also check their bank statements after cancelling a subscription to confirm that recurring debits have stopped. If a disputed payment remains unresolved, they should first complain to the bank or relevant regulated entity. If the response is unsatisfactory or no response is received within the applicable period, they may approach the RBI Ombudsman, subject to the scheme’s eligibility requirements.
The takeaway for consumers is simple. Blocking a can prevent its further use, but it should not be treated as a reliable way to cancel subscriptions. To stop recurring payments, customers need to identify the payment channel, cancel the subscription and withdraw the relevant mandate.