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Visa and Mastercard are widely accepted in India — especially in the country’s major metropolitan areas, like New Delhi and Mumbai. Large establishments, hotels, restaurants, shops and most online retailers allow you to pay by credit card, and some even accept American Express and Discover.
However, most smaller vendors accept only cash, so it’s ideal that you keep local currency handy at all times.
If you’re taking along a variety of cards, debit cards and cash, read our full guide on spending money while traveling in India.
You’ll find that most vendors accept Visa and Mastercard, while some large establishments may accept American Express and Discover cards as well.
| Merchant acceptance | ATM acceptance | |
|---|---|---|
| Visa |  High | High |
| Mastercard | High | High |
| American Express |  Medium | High |
| Discover | High | Medium |
When you use your credit card in India, there’s a good chance you’ll pay foreign transaction and currency conversion fees.
Credit cards that come with foreign transaction fees tend to charge 2% to 3% per transaction. Before you use your card outside of the US, find out how much your card will charge you. Most travel credit cards eliminate foreign transaction fees altogether.
The Indian Finance Act allows merchants to levy a service tax on the purchase and sale of foreign currencies, which includes transactions. Banks can fix currency conversion charges depending on their internal cost structures. As a result, if a merchant offers to convert your bill into US dollars, you may want to pass and make your payment in rupees instead.
When picking a credit card for your trip to India, make sure that you’re looking at travel credit cards. A common feature of travel cards is their lack of foreign transaction fees. These fees are often small, but they’ll add up every time you use your card while overseas. Another perk of travel credit cards are their rewards. In fact, you may even be able to get to India with credit card miles.
If you exercise caution, you can use your credit card in India without worry. Besides, most American credit cards protect your transaction of $50 more against fraud. Keep your credit card safe with these tips.
Pickpocketing and handbags being stolen are not uncommon in India. Keep your belongings close to you at all times, especially when you’re in crowded places. Keep your guard up, even when you think you’re in a desolate place.
Don’t let your credit card out of your sight when paying bills to avoid your credit card being skimmed, even at restaurants and bars.
Consider using a money belt or a neck pouch to keep your cards and important documents with you at all times.
You’ll find a number of establishments in smaller towns and even popular tourist destinations that don’t accept credit or debit cards. This also applies to most restaurants (or dhabas) that dot India’s highways. If you’re traveling by train, you’ll need cash to pay for food and other supplies when on board. And rural India remains largely bereft of ATMs and credit card machines. To the point: Keep cash with you, especially when you’re moving out of big cities.
In November 2016, India’s prime minister announced the demonetization of all 500 and 1,000 rupee notes. This essentially rendered some 86% of the paper currency in India useless unless exchanged through banks within a given time frame. One positive result is a considerable increase in credit card machines at retailers. As a result, you can expect most retailers in such big cities as Delhi, Mumbai, Chennai, Kolkata and Bangalore to have credit card machines.
Some merchants discourage credit and debit card payments because they have to pay a transaction fees to their banks for the convenience. Others tend to charge their customers 1% or 2% extra to cover for the fee. However, this practice is considered illegal by the Reserve Bank of India.
Several American banks have moved toward chip-enabled credit cards, but magstripes are still quite common. The situation is similar in India. But with credit card cloning and skimming on the rise, chip cards are safer to use than magstripe counterparts. Using a chip card with a PIN provides another layer of security.
The Reserve Bank of India is phasing out cards with magnetic stripes by December 31, 2018. From January 2016, all new banking customers in India are receiving chip-enabled cards.
If you dip your chip-and-signature card at a point-of-sale terminal in India, you’ll need to enter a PIN. To avoid using your PIN, simply get the merchant to swipe your card instead, because terminals that support chip cards also allow swiping. In this case, you’ll need to sign for your purchase.
Before packing your bags for India, ask yourself:
Stick by our guide to avoid trouble when using your credit card in India.
See more guides on using a credit card in other countries.
No, not unless it’s an emergency. While you may be tempted to use your credit card to withdraw cash from an ATM, remember that you’ll typically pay a cash advance fee. Interest often begins accruing from the day of the transaction, and APRs for cash advances is typically higher than that for purchases.
This table gives you an indication of much your cash advance in India could cost you.
A cash advance fee is assessed when you withdraw cash from your credit card. It’s usually the greater of a flat fee or a percentage of the transaction. For example, the cash advance fee for the Chase Sapphire Preferred is either $10 or 5% of the amount of each transaction, whichever is greater.
Visa and Mastercard are widely accepted in India, but some large hotels and merchants may accept American Express and Discover as well. If you need to make cash withdrawals, you’ll find ATMs in the large cities. Make sure you get some cash if you’re visiting the rural areas where paying with a credit card is not so common.
To fully enjoy your trip to India, consider carrying multiple travel money options.
Images: Shutterstock
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Are Citibank credit cards widely accepted in India?
Hi Bruce,
Yes, Citibank credit cards are widely accepted in India, wherever you find payment terminals with Visa and MasterCard logos.
Most large establishments, hotels, restaurants and shops in India accept payments by credit card so it should not be a problem if you use your Citibank credit card while you’re in India. Just be aware of the fees you may incur like foreign transaction and currency conversion fees.
I hope this helps.
Cheers,
Charisse
Hi.
I’m Japanese.
I can speak English a little bit.
So I could only understand the contents written on this link a little
I’m waiting for your reply.
Hi Yoshihiro,
Thanks for leaving a question on finder.
There is an option to translate a page if you are using Google Chrome. Simply right click in the middle of the page and click on Translate> Options> Translate to Japanese.
Please send me a message if you need anything else. :)
Cheers,
Joel