Blocked or replaced your debit card but still have active subscriptions? Here’s how recurring payment mandates work

Blocking a debit card may not stop recurring subscription payments if the e-mandate remains active or is mapped to a replacement card. Here is how card mandates and UPI AutoPay work, and what customers should do to prevent unwanted debits.

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 UPI 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 payments.