Using Indian debit cards to pay online internationally (prepaid & virtual credit cards)

View 12 Comments »
Share |

A problem that has long bedeviled me is that I’ve been unable to use my Standard Chartered India debit card to pay for things online. The bank reps will happily tell me that the card should work; the charging service will happily inform me that it got declined. And it’s not like in the States where if you’re having some sort of issue with your debit card you could just walk into a store and pick up prepaid Visa cards for cash; they don’t have them here.

The other day I gave it another shot after activating my Standard Chartered Platinum Debit Card. I tried buying Facebook credits and tried using PayPal to pay for something: both were declined. The bank’s customer service told me that the charges went through: Facebook had charged a dollar and PayPal a rupee. I realized that the charging processes had essentially tried some sort of verification charge after which the card failed after when they tried the whole sum.

I’ll be honest, it was more than a little bothersome; I’m just sick of the issue, sick of not being able to make these little monthly payments on things I need, that I use for work, that I can’t quickly migrate or shut down—domains and servers that I’ve managed to maintain for 7 years, just cause of some random incompatibility somewhere. Certain services (like GoDaddy via their Good As Gold program) will take wire transfers but those take a while and you certainly have to wire more than the $20-sized payments in question here.

So I got to searching for answers online, and eventually found out that the Reserve Bank of India’s 3D-Secure mandate is the problem! They require that payments made online go through an intermediary step such Verified by Visa or MasterCard SecureCode, which many international services haven’t yet implemented.

In the past I’ve come up with stopgap solutions (using a friend’s card or some online service with a card tied to it—Payoneer, for example) but they’re bumpy and quite transient. For example, in January Indian banking authorities asked Payoneer to block its cards.

Left in the lurch (again!) about how to pay for my online services I investigated the possibility of opening an account with a bank that offered virtual credit cards (e.g. HDFC NetSafe) or regular credit cards quickly (Axis Bank for example will offer a credit card against a fixed deposit) but these would require initial deposits, plus days or weeks of turnaround time—and I wasn’t even sure that they’d skip the intermediary step if I tried them online.

One last bout of googling finally delivered a stroke of luck—I found out on a forum that you can use EntroPay (EntroPay) as a virtual credit card provider. I signed up, added funds from my debit card, went through the intermediary Verified by Visa screen to load them and what do you know, it worked! EntroPay provided a virtual Visa card that was processed instantly by mediatemple.

I have to say it’s remarkable how much information is locked up in social networks and online instances of them like forums. Collective experience of people who’re familiar with a context (or have been through a mess!) beats customer service reps, articles, documentation and so forth in figuring out what the hell to do.


  • harah

    I am also having similar problem while trying to verify my Paypal account using Standard Chartered Debit Card. The process deducts Rs. 1 from my bank account but doesn’t let me verify my card. Paypal says there is a problem from bank and StanC says they are using 2 layer transaction security system i.e. CVV number and Verified by Visa and as per them Paypal doesn’t use 2nd method thats why I am unable to get it verified.

    StanC says the 2 tier security system is because RBI has told every Indian banks to implement but I don’t understand one thing here, one of my friend having Axis Bank Debit Card and he got verified with Paypal at first attempt. If Axis is following the RBI guidelines and still let Paypal to deduct $1.99 then why not StanC. Obviously StanC doesn’t have any answer for this.

    After reading your article, I am now thinking to get Entropay virtual credit card. I hope to use my StanC debit card to create this.

    Thank you,

  • http://firasd.org Firas

    harah, it’s a headache isn’t it? For what it’s worth I wouldn’t recommend using a virtual credit card to verify your paypal account because paypal often clamps down on VCC-verified accounts. If you could figure out a way to get a credit card and verify against that, that’d be best.

    I think Paypal just isn’t a good option for Indians anyway—the RBI comes up with new restrictions every year or so that squeeze Paypal and its Indian users harder. It’s tough; Indians don’t have many options for dealing with money online anyway, and then the RBI sweeps through with random restrictions every so often..

  • Swati

    Hi,

    I am facing exactly the same problem and while googling found ur blg. Makes lot of sense. Is ENtro pay perfectly 100% safe to use? Can it be used on amazon?

    Thanks for ur such a helpful blg

    swati

  • http://firasd.org Firas

    Hi Swati,

    To be honest I didn’t worry too much about the safety angle when signing up but it’s been secure and unproblematic so far. Let me know how it works out for you.

  • Ashish

    Yo! you made a nice breakthrough(Goo G ling ofcourse),i hope the Entropay would work with GoDaddy as well .Cheers

  • http://www.myindianvisa.co.uk/ Oci

    Maybe not the ideal solution, but Paypal have top up cards, so they are like pay as you go debit cards. Maybe try that?

  • surfer

    I tried my pre-paid forex card from HDFC at amazon but it did not work(it should but…) Entropay seems to have high fees: 4.95%. Thanks for the Axis Bank fixed deposit tip.

  • Sujay

    Can EntroPay Prepaid Virtual Visa Card be used in godaddy for buying domains?

  • http://firasd.org Firas

    Sujay, I’m almost certain it’d work fine

  • http://google.com abcd

    here is same problem , entropay block my account , my bad luck … my all site’s down that i managed last 4 year .

  • arpan

    Superb!!! It works!!!

  • http://www.facebook.com/people/Stacy-Jones/100001649236205 Stacy Jones

    Thanks a lot. Very very very helpful for me.