[HN Gopher] Indian online merchants cannot store credit card inf...
       ___________________________________________________________________
        
       Indian online merchants cannot store credit card information from
       2022
        
       Author : vivekv
       Score  : 255 points
       Date   : 2021-12-17 04:29 UTC (18 hours ago)
        
 (HTM) web link (rbi.org.in)
 (TXT) w3m dump (rbi.org.in)
        
       | diebeforei485 wrote:
       | Something I learned in college - not all countries have the same
       | laws as the US where it's easy to dispute a charge and the burden
       | of proof is with the merchant.
       | 
       | If India is one of those places where the burden of proof is on
       | the customer, and it's difficult to dispute charges, it makes
       | sense to tokenize things.
        
         | ratww wrote:
         | Different banks/card issuers have different rules too.
        
         | unmole wrote:
         | Disputing transactions is very simple in India. The transaction
         | notification email/sms itself usually contains a URL to dispute
         | the transaction.
        
         | mwnn wrote:
         | Yes. On forums and online IM groups you'd find plenty of people
         | suggesting "raise a chargeback" without realising it means
         | nothing in India. It's just a gesture. Merchant can just deny
         | the charge back and that's it, your credit card provider is
         | done you are charged.
        
         | vivekv wrote:
         | The burden of proof in India is with the merchant. Proof of
         | transaction has to be provided (invoice etc.,)
        
         | flak48 wrote:
         | I've filed a chargeback before in India, the burden of proof
         | was on the merchant at that time. Maybe I got lucky with my
         | card issuer.
        
       | blueblisters wrote:
       | Is the RBI deliberately trying to handicap credit cards in India?
       | The decision to make recurring payments impossible, followed by
       | having to enter card information every time I do an online
       | transaction is making for a very frustrating experience.
       | 
       | The justification for these decisions is always "consumer
       | interest" but how is making consumers jump through hoops to do
       | transact online in consumer interest? I wish the industry was
       | more co-ordinated in lobbying against these crazy policies
       | 
       | Edit: A couple of replies below that say they don't mind
       | authorizing subscriptions/recurring charges every time. I respect
       | that view but I think people underestimate how much friction it
       | adds if a business needs to ask your for permission every time to
       | renew. Consumers are forgetful. They may not be available to
       | authorize a payment when it's time to renew. Subscriptions reduce
       | transaction costs, give businesses a predictable stream of income
       | and allow consumers continued access to services without having
       | to remember to renew it.
       | 
       | If you don't believe me, just look at the data and anecdotes
       | posted by tech journalists and software devs on twitter - it's a
       | shitshow.
       | 
       | If a businesses make cancellation hard, the right policy would
       | have been to allow consumers to "stop" charge from the card
       | issuer's website or app - not ask consumers to approve a charge
       | everytime it happens.
        
         | manojlds wrote:
         | It just adds onus on the vendor. Google have implemented it
         | very well and I love this a lot more as the end user gets more
         | visibility and control.
         | 
         | It's going to be a short-term pain but I think it's going to be
         | great in long term.
        
         | paxys wrote:
         | If you'd bother to read the article (or heck the first two
         | lines of the article) you'll see that this rule does not mean
         | you'll have to re-enter your credit card info on every order.
        
           | kranner wrote:
           | From the HN guidelines:
           | 
           | > Please don't comment on whether someone read an article.
           | "Did you even read the article? It mentions that" can be
           | shortened to "The article mentions that."
        
         | naruvimama wrote:
         | Credit cards are from an era where magnetic stripes was a
         | novelty. It is just a bunch of numbers and very lax in
         | security.
         | 
         | Visa & Mastercard are just global duopolies, they have used
         | their dominance to keep the cards easy to use but insecure. The
         | cost of fraud is ultimately borne by the merchants, who try to
         | pass on the hefty fee to the card holders.
         | 
         | India is trying to move to digital payments, a vast majority of
         | the people are first time card holders or even account holders.
         | Frauds do not make it easy, and we do not want to make digital
         | payments more expensive than cash payments.
         | 
         | This is not a move against any card network. However, I
         | personally think it is wrong for Visa/Mastercard to use their
         | market dominance to charge 2-3% of every transaction. As we
         | move more and more into a digital economy, this duopoly starts
         | to sound like a New East India Company.
        
           | rowls66 wrote:
           | You should know that a small portion of the 2-3% transaction
           | fees goes to the card networks. Most goes to the card issuing
           | bank. Now in fairness, the banks also cover the cost of some
           | fraud, and payout generous rewards to their best customers.
        
         | tlogan wrote:
         | This "authorize charge" change is really giving headache both
         | to customers and companies. If person owning CC is not
         | available, emails are misses, etc. so scheduled e-mail
         | campaigns are not sent, backups are not done, scheduled data
         | loads were not performed, etc.
         | 
         | Basically running business is getting harder and harder in
         | India.
         | 
         | So this one thing why USA is still leader: not because it is
         | "great" but because it is still "Wild West" (sure somebody will
         | say "free country" - let's be honest it is more of a "Wild
         | West")
        
         | [deleted]
        
         | naruvimama wrote:
         | A lot of business around the world are built around this silent
         | charges and people being forgetful or not active in checking
         | their expenses.
        
         | vlovich123 wrote:
         | I would love to be able to have to proactively authorize every
         | single recurring purchase via a tap on my phone. If I have
         | enough that I'm being overwhelmed there's a good chance I'm not
         | tracking my purchases very well and there could even be fraud
         | I'm missing.
         | 
         | There's some use-cases maybe where automatic billing is
         | required but the vast majority would do better to need to
         | prompt the user.
        
           | mrweasel wrote:
           | There's a Danish company that provides a service which will
           | integrate into online banking platforms, that will allow you
           | to cancel recurring payments directly from your banking app.
           | How they make it work I don't know, but I hope that my own
           | bank will signup shortly.
        
         | ghoomketu wrote:
         | Yes this is stupid and it has caused me a lot of trouble since
         | this all started. I am now seriously thinking of leaving this
         | country and going to NZ or Canada (something which I did not
         | want to do because of my parents).
         | 
         | Doing business in India is so frickin hard, especially after
         | GST. I have to spend so much time on accounting nowadays and
         | it's getting harder and harder every day (even though all the
         | ads say otherwise).
         | 
         | I almost got my Digitalocean account suspended few months back
         | because the credit cards won't bill anymore. Now i have to
         | constantly monitor GCP, Porkbun, AWS, etc since nobody can bill
         | me like before.
         | 
         | Also for some reason Indians aren't allowed to keep balance in
         | Paypal but a lot of my customers prefer to pay via it, which
         | means in the end I cannot process any refunds on time and makes
         | customers angry (Paypal wants me to snail mail checks to them
         | to add the USD balance since govt has banned adding the same
         | from Bank account).
         | 
         | For recurring charges now you have to create an account with
         | https://www.sihub.in which doesn't accept small businesses
         | kinda making it an exclusive club for big companies. It's
         | really a shit-show here.
         | 
         | If it were not for Stripe Atlas I would have been out of
         | business a long time ago. So thank god for that.
        
           | spikengineer wrote:
           | Please understand the context behind the rules before
           | ranting.
           | 
           | PayPal restrictions exist because india doesn't have free
           | capital account convertibility and forex providers need to
           | implement regulatory mechanisms to comply with forex
           | regulations. The regulations on forex haven't changed in many
           | years. It's paypal who isn't bothered to comply with
           | mechanisms implemented and hence removed those features as
           | they felt customers like you aren't worth it to them.
           | 
           | Most developing countries have capital controls like India
           | for financial stability reasons and removing it for the sake
           | of small segment of entrepreneurs feeling difficulty to
           | process some payments or can't manage the accounting is not
           | in the interest of the state or it's people.
           | 
           | Stripe thinks you are worth it to them and are providing that
           | service. Find better service providers. Talk to a bank.
           | 
           | As far as GST is concerned, every country has tax accounting.
           | Some other countries like in Europe have it way worse on the
           | paperwork. Have you ever dealt with pre-GST service tax or
           | VAT paperwork? Accounting is a universal thing and it's the
           | reality of doing business.If you think just by jumping one
           | country to the other you can avoid taxes or paperwork you
           | need to rethink your approach to business. Most countries who
           | don't have taxes or tax paperwork are just tax havens living
           | off someone else's money. Will you go to NZ/Canada and not do
           | their tax paperwork?
           | 
           | If it's getting harder, maybe your size is large enough to
           | hire an accountant to do that work for you.
           | 
           | If you have so many customers overseas maybe you better
           | incorporate a foreign subsidiary or an IFSC subsidiary to
           | manage USD transactions.
           | 
           | These rules won't be changed for you - there are larger socio
           | economic reasons for the rules.
        
           | fareesh wrote:
           | This is primarily because those companies haven't updated
           | their payments systems to be compliant.
           | 
           | The e-mandate system seems to be pretty good. Netflix is
           | compliant and it worked seamlessly from day one of the
           | switch. It could be because they have incorporated locally,
           | which can be difficult for many other companies.
        
             | spookthesunset wrote:
             | > This is primarily because those companies haven't updated
             | their payments systems to be compliant.
             | 
             | For big companies with decades or more of legacy cruft,
             | it's a hell of a lift to make their universe compliant.
             | Especially if your large company tends to fall onto the
             | "decentralized org structure" part of the spectrum where a
             | billion teams run around doing their own thing with very
             | little top-down oversight.
             | 
             | It's the same kind of story as it was for GDPR (and CCPA to
             | some extent). Some companies can pull it off easy because
             | their org structure is way more top down. Others that are
             | bottoms up have a much harder time because you have to
             | heard a million different teams towards something new that
             | doesn't really deliver much immediate business value.
             | 
             | I assure you though, these companies are all no doubt hard
             | at work making life better for their india customers... it
             | is just a much harder lift for their organizations to
             | handle. Which is not to say their org structure is a bad
             | one. It just isn't optimized for top-down mandates like
             | these.
        
           | jeswin wrote:
           | > Doing business in India is so frickin hard, especially
           | after GST.
           | 
           | How has GST made things worse? I had paid Service Tax for 10
           | years prior to GST, and that was a far worse experience.
           | 
           | a) Prior to GST these was an enormous amount of tax fraud.
           | GST makes that way harder, on account of people being able to
           | track and claim input credits. Many (not all) people who were
           | complaining did so because they were suddenly unable to dodge
           | taxes. This forced them to disclose all sales, which affected
           | income tax as well.
           | 
           | b) Everything is now visible on the portal. Who you paid,
           | what they deposited etc.
           | 
           | c) Initially, there were many more compliance requirements.
           | Now it's simpler, with quarterly filing if you qualify.
        
           | unmole wrote:
           | > Doing business in India is so frickin hard, especially
           | after GST. I have to spend so much time on accounting
           | nowadays and it's getting harder and harder every day (even
           | though all the ads say otherwise).
           | 
           | Why are you having to spend so much time? I mean all the
           | popular accounting suites already support GST and automate
           | most of the compliance. The rules haven't materially changed
           | so, why is it getting progressively harder?
           | 
           | > I almost got my Digitalocean account suspended few months
           | back because the credit cards won't bill anymore.
           | 
           | Why won't they _bill_ anymore? After I enabled international
           | transactions on my card, I haven 't faced any problems with
           | DO or AWS.
           | 
           | > If it were not for Stripe Atlas
           | 
           | If you have a Delaware C Corp, why are you even bothered by
           | RBI rules? None of the limitations of the Credit cards or
           | PayPal apply to you anymore.
        
           | 2Gkashmiri wrote:
           | i help businesses in setting up their gst, accounting
           | integration and returns filing. if you need help, lets talk
        
         | sudhirj wrote:
         | So the order doesn't prohibit tokenizing or saving cards, it
         | specifies who can save them.
         | 
         | Earlier, merchants could save the details, and this ability
         | leads to massive amounts of fraud and theft (see US right now).
         | 
         | Then only regulated payment aggregators could save them, and
         | issue a token to the merchants. Stealing the token wasn't too
         | helpful because you couldn't grab the money, the token was tied
         | to the merchant. But this still means my card number is stored
         | on a bunch of companies that can suddenly take whatever funds
         | they want, and I can't cancel these tokens.
         | 
         | Fast forward to 2022, where only the issuer I got my card from
         | can give out tokens - so I can now see a list of every single
         | merchant who has access to my card tokens, and I can cancel
         | them whenever I want.
         | 
         | So the functionality is not going away, it's moving to another
         | part of the regulated system that's more in the control of the
         | consumer.
         | 
         | As a person I welcome the move (no more struggling to
         | understand card charges or pleading with companies to cancel my
         | subscriptions). As a developer it's more work to implement the
         | new system, but it's not much more work than the old one.
         | Projects using Stripe or Razorpay will get the new system with
         | no changes.
        
           | vishnugupta wrote:
           | Thanks for clear and jargon-free response. I wish this were
           | top-level and top comment.
        
           | sidm83 wrote:
           | This is a great response throwing light on the actual new
           | protocol which does seem to make sense.
        
           | ratww wrote:
           | Yep, this is how most of the companies I worked for handled
           | recurring payments. The only time the customer needs to input
           | their credit card again is when the credit card number
           | changes.
           | 
           | Some providers even had integration with banks, so when a
           | credit card was auto-renewed and the expiration changed (the
           | CC number was still the same), we didn't even have to ask the
           | customer for an update. Only when the customer specifically
           | asked for a new card.
           | 
           | So there's even the possibility of even more convenience to
           | customers.
        
         | ramraj07 wrote:
         | As a consumer in India I'm so happy at least some part of this
         | government is doing what it's supposed to do.
         | 
         | A century of unchecked lobbying is pretty much the reason why
         | the US is at the state it is. The difference I've seen between
         | how things run in india and the states is that in India what's
         | illegal and called corruption is called legal and lobbying
         | here.
         | 
         | What exactly are you worried about ? Clicking authorize on
         | nytimes subscription every month?
        
           | sumedh wrote:
           | > Clicking authorize on nytimes subscription every month?
           | 
           | Why is that a good thing?
        
             | bobthepanda wrote:
             | Why is it bad?
             | 
             | One of the first pieces of advice for anyone sorting out
             | personal finances is "figure out what subscriptions you
             | aren't using." Cancelling in many cases is an anti-pattern
             | (looking at you, NYT)
        
         | adi2907 wrote:
         | As an entrepreneur, I empathise with fellow startups losing
         | customers due to mandatory check for recurring payments.
         | However as a customer, this has been a godsend as I had almost
         | 15 subscriptions totalling $300 monthly, quite a large amount
         | in India.
         | 
         | The constant reminder of how many of those subscriptions are
         | useless has allowed me to cut my expenses. Case in point, was
         | subscribed to linkedin premium for last 2 years, while I make
         | use of it only once in 3-4 months. Now I simply dont recharge
         | my credit card and only do so once its required.
         | 
         | Not sure if its the ideal solution but definitely am thankful
         | to it!
        
       | _hyn3 wrote:
       | How would recurring transactions or metered billing work? Does
       | this only apply to merchants or providers that are not PCI-DSS
       | compliant and cannot safely store cardholder data?
        
         | jetsetgo wrote:
         | It won't. Like it should be. No one should be able to take your
         | money without your consent.
        
         | freakynit wrote:
         | I have already lost my online book store: "perlego"
         | subscription because of this. This is has 100% directly stopped
         | my access to learning. There is no other way to put it.
        
         | [deleted]
        
         | LammyL wrote:
         | This change just says that only the card issuer or card network
         | can store the card number (PAN). Everyone else in the
         | processing chain can only store card tokens.
         | 
         | This isn't a surprising change and was always going to be the
         | future of PCI compliance.
        
         | option_greek wrote:
         | There is no exception for recurring payments. Also
         | unfortunately this applies to all online merchants and Payment
         | aggregators regardless of size and certifications. So as it
         | stands a separate auth is needed for each transaction which is
         | completely regressive and precludes a lot of convenience use
         | cases. My guess is that they are doing this to make Upi more
         | convenient in comparison. But I won't be surprised if its just
         | another short sighted we know it all mentality decision from
         | the regulator who has a history of u-turns.
         | 
         | Edit: Looks like they do allow card tokenization (not part of
         | original proposal) which should address a lot of use cases
         | 
         | Here is the commentary about the original proposal:
         | 
         | https://www.businessinsider.in/finance/banks/news/rbi-wants-...
         | 
         | Here is the one after push back from industry (Which allows
         | tokenization):
         | 
         | https://timesofindia.indiatimes.com/business/india-business/...
        
           | mittalsuraj18 wrote:
           | Recurring payment for less than 5000Rs do not require a
           | separate auth. The bank has to notify the user by sending a
           | message.
           | 
           | Recurring payment greater than 5000Rs requires a separate
           | auth. (EMI's are not impacted by this)
        
         | mittalsuraj18 wrote:
         | The headline is kinda misleading. They can store credit card
         | information, but they can only do that in tokenized format
         | instead of the current way of storing. Tokenized format hides
         | the number and other information making it more secure. You can
         | read more about it here
         | https://www.thequint.com/explainers/rbi-allows-card-on-file-...
        
           | Dylan16807 wrote:
           | The token is a random number, so depending on context it's
           | fair to say that the token is not credit card information.
        
             | planet_1649c wrote:
             | Yes. But the reply above was regarding how recurring
             | payments would work
        
               | Dylan16807 wrote:
               | I'm not sure how that affects my reply.
               | 
               | To be clear, I am commenting on the difference between:
               | 
               | "Recurring payments work by storing credit card info in
               | tokenized form, which is still allowed".
               | 
               | vs.
               | 
               | "Recurring payments work by storing a token instead of
               | credit card information."
               | 
               | Those both answer the question, but they say different
               | things on whether "credit card information" is stored.
               | And they say different things about whether the headline
               | is misleading.
        
               | AmericanChopper wrote:
               | To use card tokens for any kind of payment, you need to
               | integrate with some kind of card data vault, which this
               | rule seems to also prohibit. It seems to be instructing
               | the card brands to issue unique tokens for ever
               | cardholder + merchant pair. No idea how that would
               | work...
        
               | Dylan16807 wrote:
               | > To use card tokens for any kind of payment, you need to
               | integrate with some kind of card data vault, which this
               | rule seems to also prohibit.
               | 
               | Why would you need that?
               | 
               | The rule says nobody can store "actual card data".
               | 
               | If you're using the token for a new payment, you don't
               | retrieve the card number, you use the token directly.
               | 
               | > It seems to be instructing the card brands to issue
               | unique tokens for ever cardholder + merchant pair. No
               | idea how that would work...
               | 
               | Pick a random number and store it in a database with
               | those two other fields...?
        
               | AmericanChopper wrote:
               | That number needs to be mapped to the PAN, and somebody
               | has to have stored that PAN somewhere in order for it to
               | be used to process payment. This rule says nobody other
               | than the issuer and the card brands are allowed to store
               | the PAN.
        
               | Dylan16807 wrote:
               | Sure, that's why you get the token from the issuer or
               | card brand. That way there's only one entity that stores
               | the PAN, and no third parties are storing it.
               | 
               | To quote the article linked above, "The central bank said
               | the facility of tokenisation shall be offered by TSPs
               | only for the cards issued by/affiliated to them."
        
         | rohithkp wrote:
         | Any card details that are being stored in the merchant's
         | database need to be tokenised. It applies to all entities who
         | are retrieving card details from customers, irrespective of
         | PCI/DSS compliance.
        
         | charcircuit wrote:
         | couldn't credit card companies expose an API to let you do
         | this?
        
       | _chompsky wrote:
       | Pardon me if I'm incorrect, but isn't this like one of the best
       | use cases of Stripe? Stripe usually takes care of CC/ACH
       | information and tokenizes it, only passing the tokens to the
       | merchant instead of the merchant having to store the CC
       | information. Maybe this would be a good way to start a payments
       | company boom in India?
        
         | option_greek wrote:
         | There are already several (razorpay, paytm, payu) that do
         | exactly that. They do charge 2% flat fee which is still high by
         | Indian standards (comparing to cash and upi). So merchants do
         | try custom solutions with bank gateways to reduce the fee.
        
       | korginator wrote:
       | The real story is far less sensationalist than the title on HN,
       | "Indian online merchants cannot store credit card information
       | from 2022".
       | 
       | Reading through the actual notification titled "Tokenisation -
       | Card Transactions: Permitting Card-on-File Tokenisation (CoFT)
       | Services", it is clear that the directive is a well deserved push
       | away from Card on File (CoF) where the actual card details are
       | stored by merchants, towards CoFT which is a lot less vulnerable.
       | In fact this is exactly what Apple Pay, Google Pay, and several
       | others are already doing worldwide.
        
       | neya wrote:
       | This is actually a good thing. Think of it like Apple's email
       | masking service - Merchants can only store a tokenized version of
       | your credit card instead of the real card details. I say this is
       | a good thing after having worked with many E-Commerce shops in
       | India as a consultant. Most of them barely know a thing about
       | security, let alone about PCI DSS compliance.
       | 
       | I have worked with shops that stored the entire credit card
       | number in PLAIN TEXT!. Not just credit cards, even their users'
       | passwords. This also explains why many of them got and still get
       | hacked from time to time. Even credit card processors got hacked
       | due to this. Lot of shitty ones in the Indian market actually.
       | 
       | The root cause of this, not to cause language flame wars here,
       | but is most of the shops use script kiddos with just basic PHP
       | knowledge. Bare minimum, they're recent fresh college grads who
       | just know how to consume data from a form using PHP using GET and
       | POST, that's it. Most of the code I've worked with just consumes
       | this directly instead of stripping/processing it and end up
       | introducing SQL injection attacks. Atleast, if they used a
       | framework, this would be provided by default for free, but many
       | of the developers hardly know about even MVC.
       | 
       | (As an aside) - As a personal mission, I started touring around
       | the country teaching college kids for free about basics of web
       | development, security, etc. But, still, I have a long way to go.
       | 
       | Well folks, that's it for today's note on why this was a good
       | move. Have a nice day!
       | 
       | Edit: Some of the recent hacks that were not made public
       | widescale like they should've been:
       | 
       | 1. Domino's Pizza India (Yes, the international pizza chain)
       | 
       | 2. BigBasket (Largest online grocery ordering App)
       | 
       | 3. PayTm (One of the largest, if not the largest digital payments
       | app in India)
        
         | paxys wrote:
         | That's a weird generalization. Yes there are terrible, insecure
         | e-commerce sites in India, the same as there are in the USA and
         | everywhere else on the planet. India is also the top 7-8
         | e-commerce market in the world. Large local apps in the space
         | have valuations in the tens of billions of dollars, and all
         | major global players like Amazon and Walmart are involved in
         | the country as well. These $100B in annual sales aren't
         | processed by script kiddies, it's a very large and mature
         | industry.
        
           | deathtrader666 wrote:
           | Yes, but large valuations don't correlate with better
           | security practices.. Obviously the person above isn't talking
           | about Amazon or Walmart when referring to "script kiddies".
           | 
           | Of the nearly 45-50 contract jobs I've seen, a lot of them
           | use pirated WP or Magento plugins, and plain text storage of
           | sensitive content.
        
             | sidm83 wrote:
             | Again, generalization. What you're talking about mostly
             | refers to small time sites with maybe not more than few
             | dozen orders a day. Typical ecommerce businesses (usually
             | the kind with at least 100s or 1000s of orders a day) write
             | their own code rather than using WP plugins.
             | 
             | As far as PCI DSS goes, there are multiple levels. Even at
             | the tier 2 Indian ecom company I used to work at, we did
             | not store any card info, it was just submitted in an iframe
             | rendered by the payment gateway. And even then we were
             | subjected to annual/semi-annual security audits (this was
             | in addition to quarterly external security audits we
             | ordered ourselves apart from typical OWASP top 10 checks
             | performed by QAs in weekly sprints).
        
           | yjftsjthsd-h wrote:
           | > That's a weird generalization. Yes there are terrible,
           | insecure e-commerce sites in India, the same as there are in
           | the USA and everywhere else on the planet.
           | 
           | I don't have the experience to know if this is actually the
           | case, but it seems completely plausible that different
           | countries have different regulations (or enforcement thereof)
           | such that US companies have to care about PCI more than
           | Indian companies.
           | 
           | > These $100B in annual sales aren't processed by script
           | kiddies, it's a very large and mature industry.
           | 
           | Those are less connected than you think; loads of companies
           | run obscenely large monetary transactions and essential
           | business processes with horrifying hacked-up systems (50k LoC
           | files, 20-year-old Perl scripts that nobody understands,
           | Solaris 2.x desktop in the maintenance closet...); utility
           | and good code are less correlated than we wish.
        
             | rob74 wrote:
             | Yeah, seems plausible - after all, as I recently learned
             | from another HN post, it is customary for trucks not to
             | have side mirrors in India, whereas this is much rarer in
             | the US and virtually unheard of in (western) Europe...
        
             | dewey wrote:
             | "such that US companies have to care about PCI more than
             | Indian companies."
             | 
             | If you think about the social security number system, paper
             | checks or credit cards with magnet strips I think you'll
             | notice that other countries sometimes have stricter and
             | more advanced security regulations.
        
               | yjftsjthsd-h wrote:
               | Yes, of course. I would expect the US to be ahead of some
               | countries in some places, and behind some countries in
               | some places. My point is that it's perfectly plausible
               | that in this very particular area India could be worse
               | than the US just as, say, the EU is generally ahead of
               | the US. And, in different areas India could be way better
               | than the US; this isn't "good countries" and "bad
               | countries", it's "different countries place differently
               | on whatever metric you pick".
        
               | dewey wrote:
               | I miss-understood your initial comment then, apologies!
               | You have a good point.
        
             | ratww wrote:
             | _> I don 't have the experience to know if this is actually
             | the case, but it seems completely plausible that different
             | countries have different regulations (or enforcement
             | thereof) such that US companies have to care about PCI more
             | than Indian companies._
             | 
             | Or maybe even different companies forcing users to accept
             | credit cards in different ways.
             | 
             | A handful providers I had to integrate with in my career
             | (in LatAm and Germany) had this rule where you couldn't
             | have the numbers going trough your system unless you got
             | PCI certification. You had to use an iFrame, or redirecting
             | to their website where the form was served.
             | 
             | Sometimes the APIs were there, in public, but even if you
             | used a valid credit card number it would deny verification
             | unless your merchant account was pre-authorised.
        
           | reaperducer wrote:
           | _That 's a weird generalization_
           | 
           | It doesn't seem like a generalization at all. It's someone
           | relaying their actual experience:
           | 
           | "having worked with many E-Commerce shops in India as a
           | consultant"
           | 
           | It very often happens on HN that if someone talks about
           | something they had personal experience with, that people try
           | to characterize it as a generalization, as if that somehow
           | magically makes the statements a fantasy. It does not.
        
         | ehnto wrote:
         | I have spent a long time in eComm in the west, and you see that
         | kind of stuff there as well. The most erroneous was the company
         | that would take credit cards in plain text, print them onto an
         | order sheet for reception staff to put through their POS at the
         | front desk, and then the order sheets just went into the bin
         | near the entrance. Thousands of credit card numbers were just
         | sitting there for the taking, in plain text, in plain sight.
        
           | yibg wrote:
           | Not just ecomm. I remember the days when customers would read
           | their credit card numbers over the phone for small businesses
           | (e.g. pizza joints). You'd write it down for processing
           | later. The paper then gets disposed of at some point with the
           | full credit card info and name written on them.
        
           | spookthesunset wrote:
           | > The most erroneous was the company that would take credit
           | cards in plain text, print them onto an order sheet for
           | reception staff to put through their POS at the front desk,
           | and then the order sheets just went into the bin near the
           | entrance
           | 
           | Back in my younger days, I've implemented exactly such a
           | system. Looking back, it seems like a "WTF where you
           | thinking" but somehow it made sense back then. What is
           | obvious practice now took 20+ years of internet evolution to
           | reach.
           | 
           | I've also worked for companies that:
           | 
           | - Stored user passwords in plaintext so you can email the
           | customer their password if they forgot - Stored the CVV so
           | "we could issue refunds" - Accidentally created anonymous
           | email relays using copy & paste code from some "how do I
           | create a webform in PHP" site. - Test data was simply a
           | mirror of production - Test servers would send real emails to
           | real customers (because the test data was a prod mirror)
           | 
           | There are probably some other atrocities I've been exposed to
           | but those are the highlights.
           | 
           | Oh yeah, forgot one:
           | 
           | - To "save money" on hard drives for "the server" we did a
           | RAID0 array. Works great until one of the disks die and you
           | loose everything. (This was my own dumb fault though).
           | 
           | Live and learn I guess!
        
           | chefandy wrote:
           | Indeed, astonishing retail-level security shenanigans will
           | happen anywhere relying on simple credit card numbers. That
           | said, the attack surface of a piece of paper is vastly
           | smaller than a web-app-connected database.
        
           | fishtacos wrote:
           | Not quite as egregious, but when I worked in QA for an
           | internally accessible, hospital record keeping web app, most
           | of the "test" data was real customer data, and OBVIOUSLY I
           | had complete access to prod with no particular oversight
           | (although I'm certain logging was enabled) for HIPPA. Still,
           | glad it was available, as going through approval processes
           | would've been a nightmare for our implementations.
        
             | coldcode wrote:
             | The healthcare place I worked (mid 00's) kept all the prod
             | passwords in a text file accessible to half the company. No
             | auditing of logins into those servers either, so who knows
             | what was leaked.
        
             | Tempest1981 wrote:
             | > going through approval processes would've been a
             | nightmare
             | 
             | So internal apps can skip the HIPPA approval process? Or
             | everyone can?
        
         | NavinF wrote:
         | I agree as long as merchant banks let you transfer tokenized
         | cards to a new provider. Otherwise businesses will get locked
         | into one provider for recurring billing.
         | 
         | (No, this doesn't make tokenized cards as dangerous as card
         | numbers. Transferring a merchant account is a whole process.
         | Not to mention that when a breach happens, you can cancel one
         | merchant's tokens without forcing every customer to get new
         | cards)
        
         | Abishek_Muthian wrote:
         | RBI(Central bank) has been filling-up for a long time for the
         | total lack of security practices by merchants & data-privacy
         | laws.
         | 
         | e.g. One can control how much money can be withdrawn from the
         | credit/debit card per-day according to domestic/International
         | merchants/online/physical/ATM/ etc. through net-banking with
         | the minimum in the multiples of INR 1000. So even if the card
         | data gets stolen, Criminals can utmost withdraw only the
         | minimum amount in the other part of the world.
         | 
         | But unfortunately due to the digital-divide, Not many have
         | access or awareness of such facilities and hence control over
         | card data is required.
         | 
         | IMO the single point of failure for India's financial security
         | is its extraordinary dependence on mobile number for 2FA, Even
         | security conscious customers can do little against SIM jacking
         | attacks, But for those who are not security conscious; all it
         | requires is a social engineered SMS with ngrok URL[1] or Phone
         | call asking for that OTP.
         | 
         | Please write to RBI and demand your bank to support hardware
         | tokens (or) at least TOTP.
         | 
         | > 3. PayTm (One of the largest, if not the largest digital
         | payments app in India)
         | 
         | Did you mean that largest digital payments company which
         | integrated the PoS facility on the merchant's app and the
         | customers were asked to enter their credit/debit card details
         | manually?[2]
         | 
         | [1]
         | https://twitter.com/Abishek_Muthian/status/14069649600815718...
         | 
         | [2] https://abishekmuthian.com/paytm-says-to-me-that-its-pos-
         | fea...
        
           | andi999 wrote:
           | So who has to pay up. What I mean, let's say your cc data
           | gets stolen and somebody draws money from your card, can't
           | you just initiate a charge back?
        
             | Abishek_Muthian wrote:
             | Although charge back mechanisms exists for merchant
             | transactions, I don't know of anyone who had got back their
             | money lost through the theft of their card data. I wouldn't
             | be surprised if VISA/MASTER/AMEX don't have such
             | liabilities in India as they do in US/Europe.
             | 
             | I had a conversation with cyber-crime police reg the
             | aforementioned SMS scam using ngrok, They mentioned that
             | many in my city have lost huge sums of money through it and
             | the scam is not just for stealing bank credentials, the
             | attacker's application tries to exploit victim's system and
             | had successfully installed RAT.
             | 
             | Successive Indian Govt. have been at loggerheads with
             | VISA/MASTER duopoly and have successfully derailed it for
             | domestic payments, Now Unified Payments Interface(UPI)[1]
             | which works with payment apps has more transactions than
             | debit/CC. So the domestic criminals have largely switched
             | to UPI/Bank account based scams.
             | 
             | Occasionally some of these criminals get caught and some
             | get their money back.
             | 
             | [1] https://timesofindia.indiatimes.com/business/india-
             | business/...
        
             | PeterisP wrote:
             | Chargeback rights and liability of fraud for creditcards
             | are significantly different in different regions even for
             | seemingly identical visa/mastercard cards.
        
               | andi999 wrote:
               | Yes, it is interesting though how it is in India, which
               | might put low incentives on the companies to ramp up
               | security.
        
         | unbanned wrote:
         | And yet people still think hiring Indian software and IT
         | engineers is a good idea.
         | 
         | This is not a racist thing. So don't disagree because it hurts
         | someone else's assumed feelings.
         | 
         | There is a significant gap in that sort of knowledge there.
        
           | neya wrote:
           | I disagree with this premise, I have worked across many
           | countries and I can tell you bad script kiddies and
           | programmers exist universally, everywhere. It just so happens
           | the population of India and China are quite large compared to
           | the rest of the world, so they're more easily visible. I have
           | worked with some of the best talent from these nations as
           | well, so I would be very hesitant to attach a particular
           | country to it.
        
           | [deleted]
        
           | aniforprez wrote:
           | "assumed feelings"?
           | 
           | Does that somehow magically excuse racist statements like
           | this? Good engineers are everywhere. Bad engineers are
           | everywhere
        
             | [deleted]
        
         | pronlover723 wrote:
         | What is this Apple email masking service? I keep reading about
         | it but every time I pick "Apple Pay" to pay some service it
         | tells me it's going to give them my icloud address and it gives
         | me no option to choose "mask my email" or anything remotely
         | related or giving some alternate email
        
           | dewey wrote:
           | It's called "Hide My Email" and you can use it to sign up to
           | services in apps:
           | 
           | https://support.apple.com/en-us/HT210425
        
         | powerapple wrote:
         | Agree. There is really no way of knowing which website has my
         | credit information now (I choose not to save credit details
         | anyway). I wish all websites can ask permission every year to
         | hold my information.
        
         | chakkepolja wrote:
         | > (As an aside) - As a personal mission, I started touring
         | around the country teaching college kids for free about basics
         | of web development, security, etc. But, still, I have a long
         | way to go.
         | 
         | Kudos for doing God's work! As someone who studied in India, I
         | think youtube videos might have a better reach with Indian
         | student audience. There is so many mediocre content out there
         | on YouTube and high-SEO sites like GFG (they are kinda fine for
         | algorithm / Leetcode stuff but I can't stand their student-
         | contributed code for anything else). A higher quality de-facto
         | tutorial series might make a better impact. But of course
         | promoting is important.
        
         | randombits0 wrote:
         | I'm a PCI QSA and this is exactly correct. No one should store
         | card data for recurring transactions. India just made it a law.
         | Good for them.
        
         | kashif wrote:
         | This is not all that - this is a push to move people to digital
         | wallets such as PayTM (more crony capitalism)
         | 
         | The fix for the problems you highlight is a audit and stringent
         | rule of law.
        
         | [deleted]
        
         | txtsd wrote:
         | How do I get these firms to hire me instead? I know enough
         | about the basics of security to not make these mistakes. Why
         | would they choose college grads who know nothing about it
         | instead?
        
           | the_other wrote:
           | Cost.
        
             | nmstoker wrote:
             | It's really cost plus a chance they'll get away with it (or
             | the team/mgr hiring will have moved on by the time it's
             | found out).
             | 
             | If it were cost but they were guaranteed to get caught they
             | wouldn't do it.
        
           | LeonM wrote:
           | The issue is often that:
           | 
           | 1. The vendor is not aware that this is a problem 2. As a
           | result of point 1, the vendor does not have budget planned
           | for this. 3. The reward for the investment does not make
           | sense for most of the vendors.
           | 
           | About point 3: For the vendor, there is no tangible
           | improvement in sales (in fact, some security measures raise
           | the barrier for their customers to place an order). So why
           | should they do it? In their experience, the budget is better
           | spent on improving the customer experience, marketing,
           | increasing stock, lowering prices, etc.
           | 
           | Point 3 is really tricky, especially in some cultures and
           | countries. If there is no legal consequence for leaking
           | customer data, why should they be spending money on
           | preventing something that may or may not happen in the
           | future?
        
       | supernova87a wrote:
       | I'm interested to know what level of "cannot store" the info is
       | implemented? Or is it mediated by a 3rd party company / algorithm
       | that sanitizes the data but to a certain amount that some
       | association can still be done?
       | 
       | For example, can the customer's credit card be anonymized but
       | still tracked to know that the same credit card is used on 2
       | different transactions, for example?
       | 
       | E.g. if I wanted to give the customer only 1 special offer per
       | credit card number, is that possible for the retailer to tell? Or
       | is it even more sanitized such that every single transaction gets
       | a different hashing?
       | 
       | How do refunds get issued if the number can't be stored and
       | presumably you don't want the retailer to have the backwards
       | decoding to be possible?
        
         | vinay_ys wrote:
         | For card-linked offer constructs you can infer the issuer based
         | on first 4 digits (bin number) and actually store last 4 digits
         | and name on card.
        
       | Tempest1981 wrote:
       | Sounds prudent, but can the government actually enforce this?
       | How?
        
         | vivekv wrote:
         | Mastercard is banned in India because they violated local data
         | storage rules https://www.livemint.com/news/world/us-trade-
         | officials-calle...
        
       | alkonaut wrote:
       | I always enter my card details (unless direct bank transfer is
       | available, which is becoming pretty popular lyckily).
       | 
       | But I never found the idea that a saved credit card number (23
       | digits) would make a shopping experience so much convenient than
       | having to enter it. A typical checkout still has me entering my
       | address, choosing between 5 different delivery options, agreeing
       | to various terms and so on. The payment step is just a minor step
       | along the way.
       | 
       | I wonder if this entering of payment info is feeling more
       | inconvenient to people who have become used to not having to do
       | it, for example because they have used Amazon (I still never
       | ordered anything there because they don't have a functioning
       | operation where I live).
        
         | martinald wrote:
         | You probably don't want to use bank transfers, depending on
         | your jurisdiction. Using any sort of visa/masterdcard/amex
         | gives you some protection via chargebacks. In the UK (and I
         | think many other places), paying with a credit card over PS100
         | gives you enormous additional protection (the credit card
         | company is also liable for any problems). So if someone goes
         | bankrupt, the credit card company has to make you whole. This
         | is super helpful if eg you can't do a warranty claim on a
         | product because the supplier went bankrupt. The credit card
         | company has to resolve it (which generally means a full
         | refund).
         | 
         | Paying with bank transfers completely negates all this
         | protection. Merchants love it for this reason (and lower fees),
         | but as a consumer it offers no benefits and a lot of drawbacks.
        
       | noduerme wrote:
       | So, in the early days of online retail, I built shopping carts
       | that stored credit card numbers in the business's database and
       | connected directly with a credit card gateway (not a provider
       | like Stripe). By around 2006 it became clear that this was
       | insanely dangerous to do. Every merchant could not be storing a
       | database of their customers' credit card numbers. I don't know if
       | it's actually illegal to do online card processing this way in
       | the US now, but no card company would work with you if you did.
       | 
       | So my takeaway from this is that, the fact that card companies
       | are still accepting "card not present" style transactions from
       | online retailers in India means they have been willing up to this
       | point to tolerate a large amount of fraud and hacking in order to
       | tap the market. The logical next step for them is to limit the
       | number of data sources storing the card numbers and customer data
       | themselves. Whether this comes in the form of a government decree
       | or the slow moving of the card companies away from accepting
       | these kinds of transactions, the change is inevitable. Local
       | hosting and locally managed databases are no place for credit
       | card numbers to be stored.
        
       | deanc wrote:
       | The sooner we move everything to one-time tokens (apart from
       | subscriptions) the better. It's absolutely a ridiculous security
       | model we have in place at the moment. I pay absolutely everything
       | I can with Apple Pay now. I also would like to be able to use
       | one-time disposable cards (without an additional fee) in Europe
       | (ala privacy.com) but I have yet to find such a service.
        
         | criddell wrote:
         | Doesn't the Apple credit card do this? I think they call them
         | virtual numbers.
        
       | niyaven wrote:
       | Disclosure: I work for a fintech in India, specialized in card
       | payment.
       | 
       | It seems here people see this rule as "merchants can't store card
       | numbers any more". 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're sponsored by a bank. The only
       | way to store a Visa number is to use the Visa tokenization
       | service.
       | 
       | Now if you know a bit of the card payment industry, you will know
       | that you _need_ 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 't use it for recurring payment any more.
       | 
       | 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.
       | 
       | 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' 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
       | _ZERO_ MDR on debit transactions[4].
       | 
       | 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'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.
       | 
       | [0] https://www.americanexpress.com/en-in/company/notice/rbi-
       | imp... [1] https://www.reuters.com/article/india-banking-
       | american-expre... [2]
       | https://westfaironline.com/138440/mastercard-banned-from-new...
       | [3] https://www.npci.org.in/PDF/npci/statics/RETAIL-PAYMENTS-
       | STA... [4] https://economictimes.indiatimes.com/opinion/et-
       | editorial/st...
        
         | rowls66 wrote:
         | What you are saying does not align with the text of the
         | directive. It clearly says that card numbers cannot be stored
         | for any purpose. Quoting from the directive:
         | 
         | With effect from January 1, 2022, no entity in the card
         | transaction / payment chain, other than the card issuers and /
         | or card networks, shall store the actual card data. Any such
         | data stored previously shall be purged.
        
         | naruvimama wrote:
         | I believe merchants are not allowed to charge extra for visa or
         | mastercard, but there is a hefty commission payed to them.
         | 
         | They then use this to attracts customers and/or banks to sign
         | up. Rupay customers end up paying part of the hefty commissions
         | (albeit indirectly) that Visa charges the merchants and the
         | Visa customers get discounts, cash backs and offers.
         | 
         | A payment network is just a payment network, they shouldn't be
         | using their market dominance to run marketing schemes.
        
           | niyaven wrote:
           | > I believe merchants are not allowed to charge extra for
           | visa or mastercard, but there is a hefty commission payed to
           | them. This is not the case in India but is the case in other
           | markets, yes. The IRCTC (national railway company) is for
           | instance displaying it and the customer has to pay fees
           | depending on the selected payment option. Some actors even
           | hide this amount until you reach the page asking you for an
           | OTP! I don't think it's necessarily done with malicious
           | intent, but it exists.
           | 
           | Sometime you won't see Visa or Mastercard but instead "Debit
           | Card" and "Credit Card" vs "Rupay" for instance.
        
             | naruvimama wrote:
             | But IRCTC is a behemoth (though it is publicly listed).
             | 
             | We are talking about smaller merchants, would they be able
             | to get away with the same?
        
         | unmole wrote:
         | > Rupay is a failure with a market share of 0.34%[3] (in
         | comparison UPI is at 37.73%), in spite of having ZERO MDR on
         | debit transactions[4].
         | 
         | Rupay's failure is _because_ of zero MDR, not _in spite_ of it.
        
         | spikengineer wrote:
         | I don't agree with your interpretation on this being a stealth
         | tactic but even if this was one it's just the state
         | institutions acting in the interest of their mandate. This
         | might not be beneficial to you employer or Visa or MasterCard
         | or few high flying credit card users of the super rich class
         | but it is in the interest of the people.
         | 
         | If they think it's time to move beyond cards due to the
         | strategic overdependence on foreign service providers like Visa
         | who can disrupt the Indian financial system at the behest of
         | their US govt or other interests it's the right thing to
         | discourage them directly or indirectly.
         | 
         | Think in the interest of the people. WTO commitments are not
         | worth the paper they are written on. State should do the right
         | thing to benefit the people as a whole not worry about
         | inconvenience to a few people or few middle men or foreign
         | companies.
        
           | niyaven wrote:
           | Ah maybe my comment is not clear, I am not judging on whether
           | this is a good/bad move for people. I wanted to explain that
           | the card number will still be stored: it only applies to
           | recurring payment (at least for now). So for anyone worried
           | about entities storing the card number... this will continue.
           | 
           | I understand the confusion, but just to clarify I'm a big fan
           | of UPI :).
           | 
           | Now, is it good move for the people? It's a complex topic,
           | one could write a lot about it. This move will push people
           | away from cards because card tokenization won't be supported
           | for a while, making recurring payment harder. It's well known
           | that very small amounts of friction can drastically reduce
           | the conversion rate. Entering the card details every time is
           | a hassle for sure.
           | 
           | So more UPI payments. But today there are no MDR for UPI
           | transactions, meaning fintechs and banks are losing money
           | when they process these transactions. For banks, it's
           | supposed to be ok because a digital transaction is cheaper
           | than a physical one. For fintechs, this is tough, you need to
           | find money somewhere else. So less money = less incentives =
           | less innovation. However there have been talks to put back
           | some fees on UPI (banks are pushing a lot on this).
           | 
           | On the other hand, more card payments = higher MDRs. So
           | merchants or customers, or both, will pay more to process the
           | transactions. Banks and fintech get more money. But with a
           | lack of competition, because of the current duopoly
           | (Visa/Mastercard), and the difficulty to enter the market due
           | to strict regulation, innovation is far from its peak. Just
           | by looking at how long 3DS2 takes to roll out you can see
           | that there is a lot inertia.
           | 
           | It's not black and white, as often. _Personally_ I think UPI
           | is a better direction. The only downside is that 's it is
           | only for domestic payment. I'd love to see an EU initiative
           | as successful as UPI: instant payment _could_ be the EU
           | equivalent but the fees are crazily high in some countries.
        
             | spikengineer wrote:
             | MDR problem can be solved as you indicated. It also needs a
             | solution pretty soon too.
             | 
             | EU and developed countries' banks live and finance their
             | profits on fees as they don't make much or any money on
             | loans and other traditional financial tools. Those fees
             | aren't going to go away.
        
           | kranner wrote:
           | > If they think it's time to move beyond cards due to the
           | strategic overdependence on foreign service providers like
           | Visa who can disrupt the Indian financial system at the
           | behest of their US govt
           | 
           | Is there any evidence that the RBI actually thinks this? You
           | seemingly criticise GP on their inference of an ulterior
           | motive but then posit your own ulterior motive.
        
             | spikengineer wrote:
             | Yes, some basis exists for such assumptions. RuPay and UPI
             | were originally conceptualised by RBI and Govt of India to
             | solve the overdependence problem. Otherwise RBI and GoI had
             | no reason to introduce RuPay and they could have let the
             | market develop organically.
             | 
             | Recent RBI moves of data localisation and enforcement
             | actions against Diners, American Express and Mastercard
             | also indicate strong intent.
        
               | kranner wrote:
               | I'm talking about your statement of "disrupt[ing] the
               | Indian financial system at the behest of their US govt".
               | 
               | It's a pretty strong claim. If you have any evidence for
               | this, please share it here.
        
               | spikengineer wrote:
               | It's a potential situation India is always worried about
               | from a strategic aspect. India is neither strategically
               | aligned to the US nor against it. Historically US
               | strongly supported India's enemies and actively worked
               | against India's interests all the way from 1945 to
               | mid-2000's. US under various administration even
               | threatened attack or sanctions when things don't go their
               | way.
               | 
               | Current day:
               | 
               | Right now in 2021, US is threatening sanctions under a US
               | law called CAATSA just because India bought a few
               | missiles from Russia which is a long standing defence
               | supplier to India. I know that CAATSA is forced on Biden
               | and Trump by US Congress but it doesn't matter to India
               | whether the US executive is doing it intentionally or
               | not, the US state is threatening sanctions over CAATSA.
               | In this era, when India is actively fighting/hindering
               | Chinese agression on it's borders and taking actual
               | casualties where acting against China is also in US
               | interests, US threatens economic sanctions against Indian
               | institutions and companies just because they bought a few
               | surface to air missiles which they think are the most
               | economical option to deter Chinese attack.
               | 
               | US Treasury calls India a currency manipulator and
               | threatens to cutoff India from the USD financial system
               | (as per US appropriation acts enacted to target China)
               | although economists call such a designation as stupid
               | when used against low per capita income developing
               | countries with a current account deficit just because
               | India tries to prevent an exchange rate blowout that
               | could lead to many millions of Indians falling below the
               | poverty line or losing line of income.
               | 
               | Historical:
               | 
               | In 1999, Clinton threatened to summarily sanction India
               | on all fronts including financial when India threatened
               | to go beyond the de-facto border to restrain Pakistan
               | forces after they occupied Indian territory in Kargil.
               | This threat repeated in 2002 after they supported the
               | Pakistani position after Pakistan sponsored terrorists
               | attacked the Indian parliament and India threatened to
               | retaliate against Pakistan.
               | 
               | Every time Pakistan does something stupid against India,
               | US intervenes and threatens to sanction India under the
               | vacuous argument that they want to prevent a "nuclear
               | armageddon". It's not in india's interests to succumb to
               | such threats when they aren't the source of the problem.
               | 
               | In 1998, when India tested it's nukes for the 2nd time,
               | Clinton placed a breadth of sanctions on India because US
               | doesn't like nuclear proliferation although India had
               | nukes sinces 1974 and everyone knew pak had since the
               | mid-1980's and US turned a blind eye although it knew
               | that China, Pak and North Korea are working together on
               | them. US wants so called strategic balance between India
               | and Pakistan and actively supports Pakistan on many
               | issues. This prevents India from deterring China as it
               | has spend resources countering Pakistan which itself is
               | propped up by US Military and economic aid.
               | 
               | In 1971, Nixon threatened to nuke India if India doesn't
               | withdraw from current day Bangladesh when India
               | intervened to stop a Pakistan Army led genocide and the
               | resulting refugee crisis. Nixon didn't follow through
               | because India convinced USSR to provide a similar counter
               | threat.
               | 
               | What happens to an economy if 100% of retail electronic
               | transactions stop overnight?
               | 
               | It is not in India's sovereign interest to let foreign
               | companies control any significant chunk of the financial
               | sector and it's especially not acceptable if they are US
               | companies because US frequently uses this leverage of
               | threat of sanctions to get it's way against Indian
               | ineterests.
        
       | Abishek_Muthian wrote:
       | Great, I'd also like if the merchants were forced to not message
       | via WhatsApp; From couriers to securities every business in India
       | expects that you have WhatsApp and are willing to communicate
       | with them through it.
        
         | wtmt wrote:
         | I just tell all of them that I don't have or use WhatsApp, and
         | that's true. They wouldn't be able to send anything over
         | WhatsApp since my number was never registered with that
         | platform. Those who want my business will have to abide by my
         | preferences.
        
           | Abishek_Muthian wrote:
           | I've had customer service personal change their tone towards
           | me after I tell them that I don't use WhatsApp and requested
           | them to send an email instead, They seem to take it as a
           | personal insult (or) Couldn't believe that someone couldn't
           | have WhatsApp.
        
       | nicolinox wrote:
       | I found the approach of disposable virtual card numbers (Visa and
       | Mastercard) that Revolut is giving to each app owner for free is
       | amazing. This number (always different) can be autopopulated from
       | a browser plugin during checkout from the PC and has a very
       | smooth user experience. I don't need to take a card out of my
       | wallet or open the smartphone app to do this. I am happy and
       | regulator is happy too, in this case.
        
       | teleforce wrote:
       | Kudos to Indian govt, this should be the default for any
       | e-commerce websites. I have to resort to PayPal to avoid my
       | credit card being stored in the e-commerce merchant sites but
       | some of sites do not support PayPal. It seems that Amazon somehow
       | would not even allow me to delete my old and expired credit card
       | from my account.
        
         | pronlover723 wrote:
         | paypal is worse than credit card for me. For one the paypal
         | always shares your paypal email address where as when I pay
         | with credit card I always give a different email address to
         | every merchant.
        
           | usr1106 wrote:
           | Why I needed to change the email address I use for paypal
           | repeatedly. Now I have mostly stopped to use paypal. It's
           | full of dark patterns like making authorization recurring
           | without giving me an option. Need to cancel authorization for
           | future payments manually afterwards. I guess in the wost case
           | this could be racy, another payment before I cancel.
        
           | oefrha wrote:
           | Does PayPal still share email addresses? I accept donations
           | on PayPal for my open source projects, and starting from a
           | few months ago I can no longer see people's email addresses,
           | which have been replaced by links to an internal chat system.
        
         | mkbkn wrote:
         | > It seems that Amazon somehow would not even allow me to
         | delete my old and expired credit card from my account.
         | 
         | Strange. Amazon India allows deleting the stored card details.
        
         | vivekv wrote:
         | Indian merchants have to support UPI - another payment
         | mechanism which is secure. I tend to use that in most places so
         | that I dont have to store my card details.
        
           | rg111 wrote:
           | Do you have to use your cellphone number to avail UPI
           | services?
           | 
           | If that is the case, then it is not for me.
        
             | echlipse wrote:
             | You need to have a bank account to use UPI. Banks require a
             | phone number afaik.
        
               | rg111 wrote:
               | Yes, I know that.
               | 
               | But does one need to share one's phone number to barely
               | send or receive money?
        
               | echlipse wrote:
               | nope. just your vpa.
        
             | jetsetgo wrote:
             | it is not for you and no one cares
        
             | spikengineer wrote:
             | UPI primarily uses a virtual private address in the form of
             | an email address.
             | 
             | You only need to disclose this vpa to the merchant.
             | 
             | It looks like username@statebank
             | 
             | You don't need to disclose your phone number or bank
             | account number to the merchant if you don't want to as UPI
             | has multiple address mechanisms.
             | 
             | You can also use QR
        
             | mkbkn wrote:
             | Yes, UPI needs a phone number linked to your bank account.
        
             | wtmt wrote:
             | Just to clear things up since some of the other comments
             | seem unsure or have partial information, UPI requires a
             | cell phone, a cell phone number and the bank account linked
             | with the cell phone number. It cannot be used from a
             | computer (IMPS, which is like UPI's cousin with a slightly
             | more cumbersome interface, can be used from a computer).
             | 
             | The primary form of UPI usage is from smartphone apps
             | (provided by banks or by the operator of UPI, which is the
             | NPCI BHIM app).
             | 
             | See the UPI overview page [1] by NPCI (a private consortium
             | operating UPI, IMPS and a few other services).
             | 
             | [1]: https://www.npci.org.in/what-we-do/upi/product-
             | overview
        
               | rg111 wrote:
               | Thanks.
               | 
               | But if one just needs to send or receive money does one
               | need to share one's cell phone number to this 2nd party?
        
               | scriptdevil wrote:
               | You don't need to - you can also share your unique UPI ID
               | which is text like username@bankcode
        
               | wtmt wrote:
               | GP here. No, you don't necessarily have to share your
               | cell phone number as the sender or as the receiver. But
               | take note of the details below.
               | 
               | UPI assigns/allows one or more Virtual Payment Address
               | (VPAs) for each account, which looks kinda like an email
               | address. The default VPA is usually phone-
               | number@bankname, but you can (and should) disable that
               | default VPA (mainly because UPI also has a payment
               | request mode where anyone can request anyone else for
               | money and there are plenty of scams with that and
               | enumerable phone numbers). Instead, create the VPA as
               | some-random-name@bankname (assuming nobody else has taken
               | that). The sender and the receiver would know the VPA of
               | the counter-party as well as the full name of the person
               | (the name gets displayed before confirming a payment, and
               | is helpful to know that it's going to the right person).
               | 
               | Also note that while some banks allow only one VPA for an
               | account, some banks allow several VPAs for the same
               | account (think of them as similar to what email aliases
               | are for the same email account). So you could have
               | mybusiness@bankname for your clients to send business
               | payments, mybigdinnerparty@bankname for your friends to
               | send their share of the dinner party bill, and so on --
               | all linked to your name and the same bank account.
        
             | illegalmemory wrote:
             | I have created UPI ID directly with bank and there is no
             | need of any third party app. It can be used to transfer
             | money directly without sharing bank and card details.
        
               | captn3m0 wrote:
               | You can receive money over UPI without a smartphone.
               | 
               | But sending money actively (as a customer) from a
               | personal bank account is not possible afaik.
        
               | samarthr1 wrote:
               | What no? My business, and my family business both run off
               | the ability to make upi payments by just giving a UPI Id,
               | amount and everything your pin. Quite often, i settle
               | accounts with my friends over UPI. One of them pays for
               | coffee, and i just upi him his share. And we work with
               | our own personal savings accounts.
        
               | captn3m0 wrote:
               | Needs a smartphone, that's what I was pointing out.
        
         | seesawtron wrote:
         | >It seems that Amazon somehow would not even allow me to delete
         | my old and expired credit card from my account. If you are in
         | the EU, in my experience with the GDPR, this is not allowed.
         | The e-commerce merchant must allow users to have the option to
         | remove this information. PS: I had to file a formal complaint
         | against a telecom company to have this resolved.
        
           | pmontra wrote:
           | Unless they have to store those details for N years because
           | of local laws. Obviously they could hide old cards in the UI
           | and/or implement a soft delete.
        
         | zerocount wrote:
         | I agree. I had to do the PayPal thing with my Visible phone
         | service because I couldn't delete an old card. Luckily PayPal
         | doesn't require me to have anything linked just to have an
         | account.
         | 
         | Why do companies want to store this data any way?
        
         | konschubert wrote:
         | Be careful if you pay with PayPal in foreign currency, they
         | have super-bad conversion rates that they try to trick you into
         | accepting. You can turn this off if you can see through their
         | dark patterns.
         | 
         | But as a rule of thumb, PayPal is a scammy company that I now
         | try to avoid where I can.
        
       | beebeepka wrote:
       | Convenience Vs security. All in all, looks like a good thing
        
       | kgdinesh wrote:
       | I see the US Model as "Optimistic". Let the transactions through
       | and fight back fraud with a strong chargeback mechanism.
       | 
       | Whereas the Indian Model is "Pessimistic". Put in as much checks
       | as possible to reduce the rate of fraud before the transaction
       | has even completed.
       | 
       | Thoughts?
        
         | aniforprez wrote:
         | I love it. The optimistic model forces me to be hyper aware of
         | all my banking activities and know when fraud happens
         | retroactively. All the Indian regulations mean I effectively
         | don't have to worry as much unless something serious happens.
         | CC stolen? I don't care they won't have the pin or the secure
         | pin used for online transactions so it's useless and I can just
         | close the card on the banking website. Mobile phone stolen?
         | They won't have the pin to do UPI transactions so they can sell
         | my phone but not have access to any of my banking activities.
         | It's a total Erin. This new regulation helps prevent my card
         | info from getting leaked by all these cheap sites with intern
         | developers
        
           | 2Gkashmiri wrote:
           | yesterday saw a family member get an sms "your jio mobile
           | e-kyc is pending. please call 6006xxxxxx number to get your
           | e-kyc done so that there is no disruption to your service".
           | this came after trai decided to
           | https://telecom.economictimes.indiatimes.com/news/trai-
           | pushe...
           | 
           | this means, anyone who read the news understood this was
           | going to happen and scammers put their numbers and sent out
           | sms. any unsuspecting user would just call them whereby they
           | would ask their aadhar card, pan card, otp and you are
           | fucked.
        
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       (page generated 2021-12-17 23:02 UTC)