In India, we have many international shopping websites. If you want to make purchases with your debit card on them. Then you have to perform an international transaction.
It is not limited just to the international websites for shopping. But if you are visiting any foreign country. Then you can make use of your Indian debit cards to make POS and ATM transactions as well.
When we have got the debit card that supports transactions out of India. It is a real relief as we need not carry large amounts of cash in the country we visit. (local currency)
But of course, all this comes at a cost. And this cost is nothing but the extra fee that you will be paying to the bank and parties involved in the transactions you will make.
Today we will learn how we can enable international transactions on debit cards. At the same time, we will also learn about many other things that are related or linked to this type of transaction.
- What is the Meaning of International Transaction?
- Should My Bank Be Operative in the Country I Do Transaction?
- What is the Process Involved in International Transactions?
- Do All Cards Support International Transactions?
- Will I Be Charged Extra for this Transaction? (Forex Markup)
- How to Check Forex Markup of my Debit Card? (International Transaction Charges)
- What are the Different Channels of International Transactions?
- Can I Perform International Transactions Without OTP?
- What are the Different Ways to Enable International Transactions on Debit Card?
- Choose Your Bank Here
- How to Enable International Transactions on Axis Bank Debit Card?
- How to Enable International Transactions on Bandhan Bank Debit Card?
- How to Enable International Transactions on Bank of Baroda Debit Card?
- How to Enable International Transactions on Bank of Maharashtra Debit Card?
- How to Enable International Transactions on Canara Bank Debit Card?
- How to Enable International Transactions on Central Bank of India Debit Card?
- How to Enable International Transactions on Federal Bank Debit Card?
- How to Enable International Transactions on HDFC Bank Debit Card?
- How to Enable International Transactions on ICICI Bank Debit Card?
- How to Enable International Transactions on IDFC FIRST Bank Debit Card?
- How to Enable International Transactions on Indian Bank Debit Card?
- How to Enable International Transactions on IndusInd Bank Debit Card?
- How to Enable International Transactions on Karnataka Bank Debit Card?
- How to Enable International Transactions on Karur Vysya Bank Debit Card?
- How to Enable International Transactions on Kotak Mahindra Bank Debit Card?
- How to Enable International Transactions on PNB Debit Card?
- How to Enable International Transactions on RBL Bank Debit Card?
- How to Enable Transactions on Standard Chartered Bank Debit Card?
- How to Enable International Transactions on SBI Debit Card?
- My Bank’s Name is Not Mentioned Here
- Why My International Transaction Got Declined?
What is the Meaning of International Transaction?
An international transaction is a transaction that you make in a foreign country. This can be on a website or payment gateway, POS Machine, or ATM machine that is based in another country. (not in India)
In basic words, I would say you are using the debit card that is issued to you by an Indian Bank to make transactions on foreign grounds and websites.
Should My Bank Be Operative in the Country I Do Transaction?
No, there is no such mandate that your bank should be operative in the country where you are making the transaction. Because there are payment processing networks that are involved in these transactions.
When you look at the front side of your debit card. You will see the logo of VISA, MasterCard, American Express, etc. These are nothing but payment processing networks.
Banks alone can not build up the worldwide infrastructure to support international transactions. They can of course do it but it will require a huge amount of investment.
And that is the reason why the banks take help of this payment processing network. So it is not mandatory that your bank should have an office or a branch in the country where you are making the transaction or payment.
For example, let us assume that I have an RBL Bank debit card and this card supports international transactions. And I am in Mongolia.
There is no branch or office of RBL Bank in Mongolia. But still, I can use my debit card to make POS purchases, E-commerce purchases, and ATM withdrawals in Mongolia.
Here the POS machine or ATM machine that I am using should be supported by the payments processing network that is handling my card.
What is the Process Involved in International Transactions?
If we get into technical things then the process will be really complex. The banks and the payment processing networks that are involved in this business are doing a lot of things in the backend.
And we as a normal customer usually don’t know and can’t understand these things quite well. The reason is we are not aware of the technical things running in the backend.
You can refer to the infographic that is inserted below for a rough idea of how these payments work. The source of this infographic is Currency Exchange International, Corp.
But I can explain to you the process in simple non-technical words.
First, you will visit the international website or the merchant from whom you are making the purchase using your debit card.
Secondly, you will enter the details of your card into the website’s payment gateway. And in the case of a POS machine, you will either insert your card or tap it to make a contactless payment.
Thirdly, the payment gateway will communicate with the payment processing network or company your card is linked with. (VISA, MasterCard, American Express, etc.)
Fourth, the payment processing network will then communicate with your bank to check your account balance. This is done to make sure that you have sufficient balance. And you have not blocked the card.
Fifth, the payment will be processed or declined. In case if it is processed the sum of money along with the charges will be deducted from your account balance. In either case, nothing will happen.
You should also know that some banks charge you for the declined transactions. This happens when you try to make a transaction of more value than your account balance.
Do All Cards Support International Transactions?
No, not all the cards that are issued in India support international transactions. But these days most of the cards do support.
So before you try making an international transaction you should first check if your card supports it. If it does not then you can not use it.
How to Check if My Card Supports?
You can make out by looking at your debit card’s design. And if your debit card does not support international transactions. Then you will find “For Domestic Use Only”, “For Use in Only in India” or something similar mentioned on it.
And if your card does support them you will find “International Debit Card” or something similar mentioned on it. You can refer to the images inserted here for more clarity.
Even if nothing is mentioned on your debit card about international usage. There are still, pretty good chances that your card supports international transactions.
For example, the debit card image that you can see above is of IDFC FIRST Bank. And there is nothing mentioned like “International Debit Card” or “For Domestic Use Only”.
But this card supports all types of international transactions. I personally use this card for all my international purchases.
So in such cases, the best thing you can do is call the customer care of your bank. Ask the bank personnel if your card supports it or not.
Will I Be Charged Extra for this Transaction? (Forex Markup)
Yes, when you perform any international transaction with your debit card you will be charged extra. This extra charge will be based on the value of the transaction you are performing.
Normally the banks have a fixed percentage of forex markup fees. This will be calculated on the value of your transaction as I already told you.
Along with this if there are any service charges of the payment gateway you are using. Then even that will be added to your final deduction of money from the account.
And in case you are using your card to withdraw money in another country. Then even the ATM machine or the ATM network will have to have their own fees that you have to pay. (excluding currency conversion charges)
You have to be very careful when you are converting the currency. Because if you are taking the help of any third party for the conversion.
Then you will be charged extra. So you should always convert the currency with your bank. What I mean is if the payment gateway or the ATM machine you are using asks you to select the mode of currency conversion.
Then you should always select “Convert with Card Issuer”. By doing this you will save a good amount of extra charges that you will be made to pay.
Why Should I Convert Currency with My Card Issuer?
Now you might be thinking about why you are being advised to convert with your bank or the card issuer. Let me tell you why.
The machines will have bad currency conversion rates. Basically, if you don’t convert with your bank. Then you will endup paying more than what you should pay.
You can refer to the image above in which an ATM machine is asking if the customer wants to withdraw with or without conversion.
This image is sourced from TheFamilyWithoutBorders.com.
You will get a similar type of prompt while making payments using PayPal as well. Even while using PayPal I recommend you to convert with your card issuer. (bank)
By default, it will be set to “Convert Currency with PayPal”. But you can change this by click on the “Change” button. Set the settings to “Convert with Card Issuer” and click on the “Next” button.
How to Check Forex Markup of my Debit Card? (International Transaction Charges)
There are two ways by which you can check the forex markup fee of your debit card. The first way is with the help of the Schedule of Charges page.
You can find this page on the official website of your bank. To explain you let me take the example of IndusInd Bank.
First of all, I need to open the official website of IndusInd Bank and look for the Schedule of charges link. Usually, this can be found in the footer part of the website.
So I will have to open the schedule of charge page and select “Debit Cards”. After that, I will get a page in which all the debit cards that are issued by the bank are listed.
On this page, I need to look for “Forex Markup Fees” or “Cross Currency Markup Fee” of the debit card that I own.
What are the Different Channels of International Transactions?
There are 4 different channels that you can use to make international transactions. In fact, these remain the same for the domestic transactions within India as well. I have explained all of them below.
1. ATM Withdrawals
The first channel that you can use is the most basic one and that is the ATM withdrawal. With the help of this channel, you can withdraw money from your bank account.
But for this, the ATM machine which you are using should support the payment processing network of your debit card.
You can check this by looking at the logos that are mentioned in the ATM machine lobby. Usually, it is written as “Cards Accepted Here”.
If you find the logo of your payment processing network. Then you can use your card to withdraw money using the machine.
2. POS Machine (Swipe or Dip the Card)
If you want to make the payment to the merchant from whom you have purchased something. Then you can pay him or her using your card with the POS machine.
If the POS Machine of the merchant supports your card. (payment processing network) Then you can swipe the card or dip into the machine, enter your debit card PIN Number and make the payment.
3. Contactless Payment (Tap and Pay)
If you have a card that supports contactless payment then you can make the payments using this technology as well. Make the purchase and tap your card on the machine and your payment will be done.
If you using this mode of payment then you need not enter your PIN number into the machine. The payment will be automatically done.
But you have to keep track of the maximum value of the contactless transaction you can do with your card. In India, the maximum value is Rs. 5,000. But every country has its own limit on contactless payment.
4. Online or E-Commerce Transaction
This is the most used channel of international transactions that are used in India. If you want to purchase something from international websites.
The website or the app you are using will redirect you to the payment gateway. There you will have to enter your card details and proceed with the payment.
Can I Perform International Transactions Without OTP?
Yes, you can perform international transactions without receiving and entering the OTP. This is possible when you are using the payment gateway that is based out of India.
In India, the Reserve Bank of India has made it mandatory for all payment gateway to use two-factor authentication to complete the payment.
These rules and regulations of the Reserve Bank of India are applicable only for the payments gateways that are based in India. And not on those which are based out of India.
So in such cases, your payment will be processed without entering the OTP. You just have to enter your debit card number, expiry date, and CVV to complete the payment.
If you want to learn more about this then you can watch the YouTube Video inserted below. This video is uploaded by a YouTube channel by name Gadget Gyan.
What are the Different Ways to Enable International Transactions on Debit Card?
There are two different ways that you can follow to enable international transactions on your debit cards. And they are using the internet banking portal and the mobile banking app of the bank.
Using Internet Banking
Follow the instructions given below.
Open the Official Website of the Bank → Login into your Account → Click on Services → Select Debit Card Services → Select your Debit Card from the List → Toggle the button of International Transaction to “On” → Click on the “Submit” button.
Using Mobile Banking App
Follow the instructions given below.
Open the Mobile Banking App of your Bank → Login into your Account → Open Debit Card Services → Select your Debit Card → Toggle the Button of International Transactions to “On” → Click on the “Submit” button.
Choose Your Bank Here
I have covered almost all the major Indian Banks. Choose your bank below to learn how you can enable international transactions on your debit card.
Here the banks are arranged in alphabetical order.
My Bank’s Name is Not Mentioned Here
As I have already mentioned that the major banks are covered. I was not able to cover all the banks because of a lack of available information online.
But still, if you have a debit card with you that you believe supports international transactions. Then there is no need to worry.
What you have to do is login into your internet banking account or mobile banking app. And go to the debit cards section.
Select the debit card which you want to use for international transaction. And look for “International Usage” or “Manage Limits”.
You will be able to find the “On” or “Off” and in some cases “Enable” or “Disable”. Just toggle the current status of the card and authenticate yourself to apply the changes.
If you wish set your maximum limit for each channel. Here I am talking about the maximum transaction limit for POS, ATM, and Online transactions.
Why My International Transaction Got Declined?
Sometimes you will receive this error while making international transactions. It says “Payment Declined by Bank”. There are 4 major reasons for the decline of payment.
Let me explain all of them to you.
1. International Payments Might be Disabled on your Card
Your payment will be declined by the bank if you have not enabled international transactions on your debit card. So the first thing you have to do is check if you have enabled or disabled it for your card.
2. The Transaction Value Exceeds Your Card’s Set Limit
Every card has its own limit of domestic and international transactions. So you have to make sure that the value of the transaction does not exceed your card’s limit.
If it does then you can check if it is possible to increase the limit in the “Debit Card Limit Management” section. You can access this using the internet banking portal and mobile banking app of your bank.
3. You Don’t Have Sufficient Balance in your Account
If you don’t have sufficient balance in your bank account with which your debit card is linked. Then your bank will decline the transactions. So check your account balance and try again to perform the transaction.
Also, be aware of the charges that you have to pay for the declined transaction.
4. Your Card Might Have been Blocked or Hotlisted
If you have blocked your debit card then you can not make any kind of transactions with it. In fact, you can not make any domestic transactions as well.
You can check your debit card’s current status using internet banking and mobile banking app. The status should be “Active” and not “Blocked” or “Hotlisted”.
This is everything about the usage of Indian debit cards for international transactions. I recommend you disable this feature of your card when not in use. And make sure that you never share your card details or any kind of your account details with anyone. If you have lost your debit card somewhere the learn how to block it here. For more help or information call the customer care of your bank.