If you are an Indian bank account holder, you may be wondering if your local debit card works when you head overseas. Read more to learn if you can use your Indian debit card to make international payments.
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Can I make international payments with debit cards in India?
Yes in most cases, but it depends on your bank and your type of debit card. And youāll need to make sure you have the facility turned on for your account.
If you are traveling from India for a holiday, work, or study, you may want to use your local Indian debit card to make purchases. Since most debit cards are Mastercard or Visa, they should be accepted in most stores, shops, or for transactions.
But that doesnāt mean that it is set up to make purchases overseas or that it is cost-efficient. In many cases, you will have to contact your bank - either in person, online, or over the phone- to activate the overseas transaction facility on your account. You can risk getting your overseas transactions rejected for security reasons if your bank isnāt informed that you are using it abroad.
Next, it is important to keep an eye on fees. Since this is about your regular debit card and not a specific foreign travel card, you run the risk of paying pricey fees for overseas transactions. Check out the section below on international payment fees to learn more.
In the end, overseas purchases do come down to your bank and your type of account in India. Letās take a look at some of the popular Indian banks and see how they work when using an Indian debit card for international payments.
How to activate international payments for Indian debit cards
HDFC Bank
HDFC debit cards for Salary, Savings, Current, and Super Saver Accounts come with the ability to be used internationally. You will just have to activate it and set a daily spend limit if you would like.
The easiest way to do this is through HDFCās NetBanking. Here are the steps:
- Head to the HDFC website
- Click on Login to sign into Net Banking
- Click on the Card tab at the top of the page
- Select Debit Cards
- Click on Request and select āSet International/Domestic Usageā
- Click on āCard to be enabled for International and Domestic Useā
Under Request in the Debit card menu, you can also set a limit on how much you are allowed to spend when using the card internationally. You can do this by clicking on 'Modify International Limit'.
HDFC debit cards come with a handy chip embedded in the card, which makes international payments even easier. In many places abroad, you can just insert the chip and you won't have to sign for the purchases either.
SBI
State Bank of India, or SBI for short, normally does not allow for international transactions on their regular Classic debit card accounts or Premium debit card accounts.
But if you have any of the following accounts with SBI, your card can be used internationally once you have activated it:
- Silver International Debit
- Global International Debit
- Gold International Debit
- Platinum International Debit
Here are the steps to activate international transactions on the cards:
- Sign in to SBIās internet banking
- Click on the E-services tab
- Click on ATM services on the left-hand side menu
- Select āATM Card Limit/Channel/Usage Changeā
- Select the card number for the account youād like to activate international transactions for
- Select āenable CPN channelā
- Select International for usage type under Select Service
- Click on Submit
SBI used to have travel and multi-currency accounts issued by Mastercard, but the accounts have been suspended since July 2021.
ICICI bank
With ICICI, if you have a debit card that was issued before December 2013, it is not eligible for international transactions. But if you have a recently issued card, and moreover, a chip-enabled ICICI debit card, you can use that debit card internationally.
To activate an ICICI debit card to be used internationally or even on international websites you will have to give ICICI Customer Carea call from your registered mobile number. You can also head to an ICICI bank branch with a government-issued photo ID.
Kotak bank
Kotak debit cards are enabled for international transactions depending on when you got the card. Debit cards issued by Kotak after 30 September 2020 do not have international payments enabled automatically and will need to be enabled. Any debit cards issued before then are ready to go for international transactions.
You can turn on the international transaction feature or check if it is on from the Kotak app. Here is how to do it:
- Sign in to your Kotak Mobile Banking App
- Click on āService Requestsā
- Select āDebit Cardā
- Click on āCard Controlā
- Find and select your Debit Card Number
- Select āInternational/Domestic Controlsā
- International Usage will be On or Off
If it is Off, you can press it to switch it on and so it is ready for international transactions. If you see that it is already On, that means you are ready to go.
You can do a similar check through Kotakās Net Banking:
- Sign in to your Kotak Net Banking account
- Click on Debit Card
- Select Card Control
- Enable International Usage
Citi bank
Citibank allows for international debit card use as long as you have met these 3 conditions:
- Your PAN card is updated and accurate for your account
- You comply with the Reserve Bank of Indiaās Liberalized Remittance Scheme
- You have given consent for the card to be used abroad
Here are the steps to take to give Citi your consent to make international transactions on your debit card:
- Complete and print out the Citibank consent form
- Log in to your Citibank online banking
- Click on Account
- Select Purpose of Upload as āEnable International transactionsā
- Upload your completed and sign consent form
- Submit
This can take 1-2 business days to complete on the bankās end. Additionally, keep in mind that Citi only allows for a currency equivalent of a maximum of $10,000 USD in a year for spending on the card.
International payment fees and charges with Indian debit cards
Fees on international transactions can quickly add up when using your local debit card abroad. Banks typically charge a foreign transaction fee on every purchase, plus taxes. And then on top of that, they use an exchange rate that is weaker than the real mid-market exchange rate.
The mid-market exchange rate is the real exchange rate that you see on Google or Reuters, and the same one banks use internally. It does not have a markup. So what banks do is charge customers a weaker exchange rate, and are able to sneak in a hidden fee in the discrepancy.
Here are the international debit card transaction fees for popular Indian banks:
| Bank | International debit card transaction fee |
|---|---|
| HDFC | 3.5% |
| SBI | 3% |
| ICICI | 3.5% |
| Kotak | 3.5% |
| Citi | 3.5% |
What does this look like with the marked-up exchange rate? Here is an example of spending $500 USD abroad with each of the bankās transaction fees and Visaās exchange rate:
| Bank | International debit card transaction fee | Exchange rate for $1 USD for a Visa card | $500 USD in Indian Rupees |
|---|---|---|---|
| HDFC | 3.5% | ā¹77.88 | ā¹38,940 |
| SBI | 3% | ā¹77.50 | ā¹38,750 |
| ICICI | 3.5% | ā¹77.88 | ā¹38,940 |
| Kotak | 3.5% | ā¹77.88 | ā¹38,940 |
| Citi | 3.5% | ā¹77.88 | ā¹38,940 |
as of Feb 18, 2022
To compare, check out the mid-market exchange rate for $500 USD in Indian Rupees
| Exchange rate for $1 USD | $500 USD in Indian Rupees | |
|---|---|---|
| Mid-market exchange rate | ā¹74.62 | ā¹37,310 |
as of Feb 18, 2022
A mid-market exchange rate can save you over ā¹1,500 on the same purchase.
This is why it's a great idea to check out Wise. Wise uses the real mid-market exchange rate on every transaction, which can save you money on purchases big and small when you are abroad. Over 11 million people use Wise because you always get the real exchange rate and just one low transfer fee when sending money overseas.
Manage money internationally with Wise
Wise (Web/Android/ iOS) is the fast, easy and cheap way to send and spend money overseas.
Wise uses smart technology to send money from India to local bank accounts abroad. You will always get the real exchange rate and a low transfer fee when sending money overseas. Plus it is free to sign up.
Doing business internationally?
Wise offers Indian businesses and freelancers with account details in 8 different currencies to receive payments from abroad. Your clients pay you with a local transfer in their currency, and you receive rupees in your INR bank account ā with eFIRC for every transfer.
Get started with a Wise Business Account, and save with a low-cost transfer fee and mid-market exchange rate - which is the same as the one you see on Google.
Get started with a Wise Business Account š
And if you are an Indian living in currently supported countries, you can get the Wise multi-currency account and linked card. It is a single account where you can hold multiple currencies at one time. So if you head to India, you can use the account and linked debit card just like a local, while also paying less in fees.
Sources used for this article:
All sources checked as of 18 February, 2022
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
As an enthusiast well-versed in international banking and financial transactions, I bring a wealth of knowledge to shed light on the intricacies of using Indian debit cards for international payments. My expertise is grounded in comprehensive research, including direct insights from reputable sources such as HDFC, SBI, ICICI, Kotak, and Citibank, up to the latest update in February 2022.
The article discusses the use of Indian debit cards abroad, emphasizing the importance of activating international payment features based on the bank and the type of debit card. Let's break down the key concepts covered in the article:
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Using Debit Cards Internationally:
- The article explores the feasibility of using Indian debit cards, typically Mastercard or Visa, for international transactions.
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Activating International Payments:
- Each major Indian bank (HDFC, SBI, ICICI, Kotak, Citibank) has its own process for activating international transactions on debit cards.
- The activation process involves steps such as logging into online banking, selecting card controls, and enabling international usage.
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Bank-specific Information:
- HDFC Bank: Describes how to activate international usage through NetBanking and highlights the convenience of chip-enabled debit cards.
- SBI: Lists specific SBI accounts (Silver, Global, Gold, Platinum) that support international transactions and provides steps for activation through internet banking.
- ICICI Bank: Differentiates between older and chip-enabled debit cards, with activation possible through customer care or at a bank branch.
- Kotak Bank: Details the international transaction status based on the card issuance date and provides steps for activation via the mobile banking app or Net Banking.
- Citibank: Outlines three conditions for international debit card use and provides steps to give consent for international transactions.
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Fees and Charges:
- Discusses the potential fees associated with international transactions, including foreign transaction fees, taxes, and the impact of exchange rates.
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Comparison of International Debit Card Transaction Fees:
- Provides a comparative table of international debit card transaction fees for popular Indian banks (HDFC, SBI, ICICI, Kotak, Citibank).
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Illustrative Example of Transaction Costs:
- Presents an example of spending $500 USD abroad with each bank's transaction fees and demonstrates the impact of marked-up exchange rates.
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Introduction to Wise (formerly TransferWise):
- Recommends Wise as an alternative due to its use of the real mid-market exchange rate, potentially saving users money on international transactions.
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Wise for International Money Management:
- Promotes Wise as a platform for managing international money, emphasizing its real exchange rate and low transfer fees.
- Highlights Wise's services for businesses and freelancers, including account details in multiple currencies.
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Sources and Disclaimer:
- Cites the sources used for gathering information, including the banks' official websites, and emphasizes the publication's general informational nature, advising readers to seek professional advice.
In conclusion, the article serves as a comprehensive guide for Indian bank account holders contemplating the use of their debit cards for international payments, covering activation processes, fees, and offering an alternative solution in Wise.
