Types of bank cards that are compatible with the Indian payment system

Payment systems in India support a wide range of bank card types to cater to different users and scenarios. Below are the major bank card types adapted by the mainstream payment platforms in India (e.g. Paytm, PhonePe, Google Pay, BHIM, etc.) and related considerations:

1. Debit Cards

• Widest range of applications, almost all debit cards issued by Indian banks can be used.
• common network::
  • RuPay(India's homegrown payment network, promoted by the government, with low processing fees)
  • Visa/Mastercard(international network, widely accepted)
  • Maestro(A sub-brand of Mastercard, some older cards may still be in use).
• Applicable Scenarios::
  • UPI Binding (needs to be linked indirectly through bank account).
  • Online shopping, POS card swiping, ATM cash withdrawal.

2. Credit Cards

• Main international networks: Visa, Mastercard, American Express (less common), RuPay Credit Cards.
• Applicable Scenarios::
  • UPI Tying: RBI to allow credit cards to be linked to UPI from 2023 (supported by some banks only).
  • Online payment/subscription services: commonly accepted by e-commerce platforms like Flipkart, Amazon India, etc.
• take note of: Some small local merchants may decline credit cards to avoid processing fees.

3. Prepaid Cards (prepaid card)

- Examples:
✓ Digital wallets like Paytm Wallet Card, MobiKwik ZipCash.
✓ Travel cards (e.g., Axis Bank Forex Card).
- Use Case:: Budget control, online payments without linking a bank account.

Key Considerations for Indian Payment Systems

1. UPI Dominance
   - Most transactions occur via UPI (linked to bank accounts, not cards).
   - To pay via card on UPI: Link RuPay credit cards (new feature as of Sep'23).

2. NPCI's RuPushbackion
   - Government promotes RuPay for lower transaction fees; mandatory on all POS terminals.

3. RBI Security Rules
   - All online card payments require OTP authentication (no "guest checkout").
   - Tokenisation mandated for saving card details post-Sep'2022.

4. Foreign Card Acceptance
   × International debit/credit cards often rejected on domestic platforms like IRCTC or BBPS bill payments unless issued by an Indian bank branch.

Top Payment Methods Breakdown (%)

Data Source: RBI Annual Report '22-'23

For optimal acceptance in India.
✔️ Get a RuPay debit card + enable UPI through your bank app.
✔️ For e-commerce, Visa/MasterCard credit cards work best.
✔️ Foreigners need INR-linked NRE/NRO account cards for full functionality.

Would you like specifics about a particular banking partner or transaction type?

Okay, let's continue to dive into the details and practical advice on adapting bank cards in the Indian payment system. Here is a more specific breakdown, tips on how to use them, and solutions to common problems:

4. Scenario-specific card adaptation guidelines

a. Government and public service payments

• Supported card types::
  • RuPay Debit Card (Mandatory Priority) | Visa/Mastercard Debit/Credit Card (Partially Restricted).
• typical scenario::
  • Payment of utility bills (BBPS platform), railway bookings (IRCTC), motorway tolls (FASTag needs to be tied to RuPay or a dedicated prepaid wallet).
• take note of: International credit/debit cards may be declined, cards issued by local Indian banks are required.

b. Cross-border payments and international platforms

• Recommended Cards::
  • Visa/Mastercard credit card (with 3D Secure authentication) | Amex for high-end merchants only.
• sore pointThe RBI has additional restrictions on international transactions, which need to be activated in advance for "International Transaction Privileges".

5. Rules for linking UPI to bank cards

6. Foreign Users' Checklist (Required for foreign users)

1️⃣ Required for NRE/NRO accounts → Otherwise it is not possible to bind UPI or use localised services.
2️⃣ Avoiding dynamic currency conversions → Select INR settlement when swiping your POS card to prevent exchange rate loss.
3️⃣ Alternative programme → Carry a Paytm Payments Bank virtual VISA card as an emergency.

Troubleshooting

❌ "Card not supported" error?
→ rationale :: NPCI mandates that some American Express/JCB cards be invalidated at non-cooperative terminals.
✅ settle (a dispute) : Switch to Rupay/Visa network retry.

❌ UPI failed to tie the card?
→ probe : (1) Whether KYC is completed (2) Whether the Card issuer is in thePCI-DSS Certification List.

❌ "International transaction blocked"?
→ SMS UNLOCK to your bank's designated number (e.g., SBI:567676).

Pro Tips for Merchants Merchant Information

▸ RuPay fee is lower than Visa ~0.3%, promotion can reduce cost and increase efficiency.
▸ PCI compliance is a must - HSM encrypted end devices are essential.
▸ For recurring payments: Use e-Mandate via NetBanking instead of direct deposit of card information.

Need to know the differences in the card-binding process for a specific bank (e.g. ICICI/Yes Bank)? Or are you experiencing a specific payment failure?