Accepting international card payments is a major milestone for any Indian business that wants to tap into global clients. Whether you run a SaaS product, a creative agency, an e-commerce brand or you work as a freelancer, being able to collect money from customers outside India without friction becomes essential.

However, getting approved for international card payments in India is not as simple as switching a toggle in your payment gateway dashboard. There are RBI rules, compliance checks, export documentation requirements and settlement conditions that every business must follow. A proper merchant account or a compliant payment solution protects both you and your clients while making sure the funds reach your Indian bank account cleanly.

This guide explains the complete process in detail so you understand what to expect and how to choose the right setup for your business.

What a merchant account actually is

A merchant account is a special type of account that sits between your customer’s card network and your own bank. It is not a normal bank account. It holds the money temporarily while risk checks, foreign exchange conversion and settlement procedures take place.

For international payments, the merchant account must be specifically enabled for foreign cards. Visa, Mastercard, Discover, Amex and many international networks require additional approvals because the chargeback rules, fraud risk and settlement pathways differ from domestic transactions.

In India, a merchant account can be issued by a bank or a payment gateway that already has an acquiring partnership with a bank. Most small businesses avoid direct bank merchant accounts because the approval process is slow. Payment gateways make the process easier because they handle underwriting and compliance for you.

Documents required before you start

Gateways and banks collect documents to confirm that your business is legal, capable of handling refunds or disputes and compliant with export rules.

You will usually need the following.

• Business PAN card
  
• Proof of business registration such as GST or MSME
  
• Bank account details
  
• A functioning website that clearly explains your product or service
  
• KYC documents for the owner or directors
  
• A cancelled cheque for settlement
  
• Business model explanation including who your customers are and what value you deliver
  

If you are a freelancer, you may onboard as a sole proprietor, but some gateways still prefer a formal company such as an OPC or private limited for international cards.

Step by step process to get international card acceptance

Step 1: Select the right payment provider

Your options usually fall into two categories.
Bank merchant accounts, which are powerful but require patience and strong documentation.
Payment gateways, which offer quicker onboarding, smoother integration and better developer tools.

Common gateways in India include Razorpay, Cashfree, PayU and Stripe. Not all of them activate international cards by default.

Step 2: Request international payment activation

This is a separate approval stage. Gateways review your website, your refund policy, your terms of service and whether your industry falls in a low or high risk category. International card acceptance can be restricted for industries such as crypto, trading, adult content and digital goods with high dispute rates.

Step 3: Complete KYC and compliance checks

The provider verifies your identity and your company details. They check if your site is secure, if your pricing is transparent and if your customer onboarding is legitimate.

Step 4: Integration and testing

You can now place the gateway’s checkout on your website or generate international payment links. API integration is needed if you run a SaaS product, subscription billing or custom e-commerce system.

Before going live, test with sample foreign cards so you know how the pricing appears to customers and how the settlement flows back to your bank account.

Step 5: Foreign exchange and settlement

When a customer pays you in dollars or euros, the payment gateway receives the money first. After this the following steps take place.

• The gateway or acquiring bank converts the foreign currency into INR
  
• Your export of services or goods is recorded for compliance purposes
  
• Settlement is made into your Indian bank account after the required cooling period
  

How settlement timelines work

Many new business owners assume that once a customer pays by card, the money appears instantly in their bank account. This is not true for international transactions.

The settlement timeline usually involves these stages.

• Gateway receives the funds
  
• Card network processes the transaction
  
• FX conversion takes place at the rate chosen by the gateway
  
• Compliance checks ensure the payment matches export activity
  
• Money is released into your bank account
  

Depending on your provider, this may take anywhere from two days to five days. Some providers hold money for longer if they consider your business category risky or if they expect chargebacks.

This delay is normal. It reflects the additional checks required for foreign payments under Indian rules.

What the fees usually look like

International card payments carry multiple layers of fees. Understanding them helps you calculate your actual revenue.

The common fees are:

• A percentage fee on every international transaction. For many providers this is between 3 and 5 percent depending on the card network.
  
• A fixed fee added on top of the percentage.
  
• A currency conversion markup. This can significantly reduce your final income. Even a two percent markup on a large invoice is a big loss.
  
• Chargeback fee. If a customer disputes the payment, you pay for the investigation.
  

The percentage fee is visible, but the FX loss is often hidden and harder to track. For high value invoices, this becomes the largest cost factor.

Issues that many Indian businesses face

Many users face challenges with international card acceptance in India. These include:

• Approval delays because banks treat cross border activity carefully
  
• Very high FX markup that eats into profit
  
• Restrictions on industries considered high caution
  
• Longer settlement times compared to domestic transactions
  
• Chargebacks that become difficult to contest because they involve foreign card networks
  
• Export documentation requirements such as FIRA or settlement advice
  

These difficulties lead many freelancers and service exporters to look for alternatives that simplify the entire inward remittance process.

A simpler method for receiving international client payments

Instead of relying only on card based merchant accounts, many Indian businesses now use platforms built specifically for export payments. These solutions offer virtual accounts in multiple currencies, flat fees instead of percentage based pricing and smoother compliance.

BRISKPE is one such option designed for Indian freelancers, small agencies and exporters. It provides:

• Multi currency collection accounts
  
• Zero FX markup
  
• A simple flat fee model
  
• Fast settlement in T plus one or T plus two days
  
• Automatic export documentation
  

Because the cost is not tied to the size of the invoice, large payments become significantly more profitable compared to card based gateways.

Final thoughts

Setting up a merchant account for international cards in India requires documentation, careful onboarding and patience during approvals. While PayPal, Stripe and local gateways remain useful, they also come with high fees, slower settlement and heavier documentation requirements.

If you want a faster, cleaner and more cost efficient way to receive money from global clients, you can explore BRISKPE. It is built for Indian service exporters and helps you retain more of your earnings while staying fully compliant.