Online shopping from international websites has become increasingly popular, offering access to a vast range of products and attractive prices. However, many Indian shoppers have encountered issues with their debit or credit card transactions on these platforms. Understanding the common reasons behind these failures can help resolve payment issues and ensure a smoother shopping experience.
1. Card Compatibility: One of the primary reasons for failed transactions is that not all Indian debit or credit cards support international transactions. To determine whether your card is eligible for international payments, it is essential to check with your bank or card issuer. They can provide information about the international transaction status of your card.
2. Activation of International Transactions: Even if your card is capable of international payments, it may require activation. Cardholders can enable international transactions by contacting their bank or using mobile banking apps. Some banks allow customers to set transaction limits for added security. If the purchase amount exceeds this limit, the transaction may fail.
3. RBI Regulations: The Reserve Bank of India (RBI) introduced specific guidelines in October 2021 concerning international payment websites and auto-debit rules for Indian debit or credit cards. If an international website does not comply with these RBI rules, it cannot accept recurring or standalone payments from Indian cards. This regulatory alignment can sometimes lead to transaction failures.
4. Geographic Restrictions: Certain international websites impose geographic restrictions or limitations on the countries from which they accept payments. Indian cards may be blocked from making payments on such websites due to currency and business restrictions. This can lead to payment failures.
5. Prohibited Categories: Indian credit and debit cards cannot be used for specific payment categories prohibited by the Foreign Exchange Management Act and RBI regulations. These prohibited categories include payments for lottery tickets, online gambling, banned publications or websites, and the purchase of banned substances. Attempting transactions in these categories can result in payment failure.
6. OTP and Authentication Issues: Issues with one-time passwords (OTP), network problems, or other authentication challenges can also contribute to transaction failures. It’s crucial to ensure a stable internet connection and provide accurate authentication information during the payment process.
7. Suspicious Transactions: In some cases, the payee bank may flag a transaction as suspicious, leading to payment rejection. This can occur if the security protocol of the website being used for the transaction raises concerns.
8. Reversed Transactions: There are instances where payments on international websites initially go through but get reversed after a certain period. This reversal leads to the ultimate failure of the transaction.
Understanding these common reasons behind failed international card transactions can help shoppers navigate online purchases more effectively. By addressing these issues, individuals can make informed choices when shopping on global platforms, ensuring successful transactions and a seamless shopping experience.
