Auto pay for free Azure account

Question

Hi All,

I recently got myself Azure free account which is valid for 12 months with limited credits and services. I paid 2 rupees from my Debit card but I received a msg from my bank saying that Auto-pay activated for INR 200000.

I don't understand this, when this 2Lkh will get debit ??
Is it a issue? Should I be concerned?

Thanks in Advance

Answer 1

Hi Shivhare, Ayushi (Cognizant),

Thank you for reaching out with your concern. Let me help clarify what’s happening:

When you sign up for an Azure free account, Microsoft requires you to provide payment details for verification purposes. The initial INR 2 rupees charge is a standard test charge to validate your card and will be refunded automatically.

The "Auto-pay activated for INR 200,000" is a message from your bank indicating a pre-authorization or credit limit setup, which ensures that charges for any future paid usage can be deducted from your account. However, this does not mean you will be charged INR 200,000 upfront.

For a brief overview:

Free Account Benefits: You get limited credits (typically $200 or equivalent in INR) and access to free services for 12 months. Unless you explicitly opt into a paid plan or exceed your free credits, you won’t be charged.

How Payments Work: If your usage exceeds the free credits or if you subscribe to additional services, only then will charges apply, and these will be billed based on actual usage.

References:

https://learn.microsoft.com/en-us/azure/cost-management-billing/manage/spending-limit

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