Auto Pay Subscriptions Can Persist Despite Service Cancellation: A Step-by-Step Guide to Discontinuation

UPI Auto-Pay Mandates: Understanding and Managing Your Subscriptions

The Unified Payments Interface (UPI) auto-pay facility offers a convenient way for users to set up automatic payments for various subscription services, including over-the-top (OTT) video services, utility bills, insurance, and application charges. This process allows users to easily set up mandates, which enable merchants to debit fixed or variable amounts from their bank accounts at specific intervals.

However, this convenience may also lead to unexpected charges when users forget about their existing subscriptions. Smaller transactions can continue to be debited from the account for months, making it essential for users to understand how the system works and how to terminate the mandate process when no longer needed.

What is a UPI Auto-Pay Mandate?

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A UPI auto-pay mandate is a prior agreement between the user and the merchant, allowing the merchant to debit a fixed or variable amount from the user's bank account at specific intervals. When a user subscribes to any online service using their UPI payment app, they authorise the mandate, which then handles automatic payments without requiring further authorisation.

Why Do People Forget About Active Subscriptions?

Most subscriptions are economical and billed monthly, making it easy for users to ignore the minor charges. Additionally, the conversion from free trials to subscription services is a common cause of forgotten subscriptions. People might subscribe to such offers but forget to unsubscribe after the trial period ends. Given the number of mandates, users may end up paying for unnecessary subscriptions in the future.

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Identifying Active Mandates

The vast majority of UPI applications have a section called "mandates," where all active mandates are listed. In addition to the merchant name, payment amount, and payment date, users can review the mandates to see whether any are active and unnecessary. Users can also review their bank statements to check for recurring debits.

How to Cancel UPI Mandates

Users are expected to visit the mandates tab on their UPI app to cancel their mandates. This includes selecting the specific mandate and clicking the "cancel" button. After doing this step, the mandate will be cancelled. In some cases, users may need to cancel the mandate with the same service provider and with the mandate itself.

Important Points to Remember

Cancellation of mandates prevents any more transactions from taking place without reversing the transactions already made. A user should cancel a mandate before any payment is deducted to prevent unwanted deductions. It is also necessary for the user to ensure that important payments, such as insurance policy premiums or loan EMIs, are not inadvertently discontinued.

Frequently Asked Questions

• Where can I view my UPI autopay mandates?
  • UPI mandates can be viewed in the respective section in the UPI app.
• By cancelling the mandate, will I block future payments?
  • By doing so, you will prevent any further payments through the mandate.
• Do I have to cancel the subscription separately?
  • Sometimes, yes, if the service requires account-level cancellation.