International online transaction is unsuccessful but money has been deducted: When, how will you get a refund?
Why does your international online transaction fail?
The Reserve Bank of India (RBI) in October 2021 came out with a specific directive about international payment websites and auto-debit rules using Indian debit or credit cards. If an international website is non-compliant with the rules specified by RBI, then it cannot accept recurring or standalone payment from Indian debit or credit cards. Further, the reason for payment failure may sometimes not even be the fault of the international website.
Explaining it further, Pranay Jhaveri, MD- India and South Asia, Euronet, a payment service provider, says, «There are several factors that could be responsible for this. Certain international websites may have geographic restrictions or limitations on the countries where they accept payments. It is possible that Indian cards may be blocked from making payments on such websites due to currency as well as business restrictions.»
There could be other reasons too. «According to Schedule 1 of Foreign Exchange Management Act, 1999 read with RBI's Master Circular on Miscellaneous Remittances from India — Facilities for Residents, Indian credit cards and debit cards cannot be used to make payments where foreign remittance would be otherwise prohibited. These prohibited categories are payments for lottery tickets, online gambling, banned or proscribed magazines or websites, purchase of banned substances etc,» says Pallav Pradyumn Narang, Partner, CNK, a Delhi based chartered accountancy firm.
Further, it is also possible that despite the international website not being on RBI's exclusion list, it is obliging every Indian payment law and regulation, may still fail to accept payments from Indian debit and credit cards. «This can
