What Are the RBI Rules on Receiving Export Payments by Card?

The RBI rules on export payments by card cover how a card receipt must reach India, which payment aggregator rules apply, and what the exporter must still declare and realise. No single RBI rule is titled for card exports. The answer comes from three sets of rules read together.

• Manner of receipt: Receipts for exports must follow the FEMA (Manner of Receipt and Payment) Regulations, 2023 under Regulation 4(1) of the 2026 export regulations. Those regulations require receipts from a person outside India to come through an Authorised Bank or Authorised Person (Regulation 3(2)).
• Currency: For trade with countries other than Asian Clearing Union members, receipts may be in Indian rupees or any foreign currency (Regulation 3(2)(I)(a)(iii)). Nepal and Bhutan have separate rules.
• Card carve-out: A card transaction where the card network handles the foreign exchange settlement and the aggregator receives local currency is not part of PA-CB activity (Note 2 to paragraph 4(i)(ii), Master Direction on Payment Aggregators).
• PA-CB route: Where a cross-border payment aggregator collects the payment for an onboarded exporter through e-commerce mode, the PA-CB rules in paragraph 11 of the Master Direction apply, including the Rs 25 lakh per transaction cap.
• Exporter duties: The payment method does not change the exporter's duties. The EDF, EDPMS closure and realisation period rules in the 2026 export regulations apply to every export.
• Chargebacks: A payment aggregator must have a dispute mechanism that covers responding to chargebacks against its merchants (paragraph 8(a)), and customers' chargeback rights stay unaffected (paragraph 18(h)).

Before 1 October 2026, paragraph A.3(ii) of the old Master Direction on Export of Goods and Services said AD banks could receive export payments by debit to the importer's credit card where the card issuer reimbursed in foreign exchange. A.P. (DIR Series) Circular No. 20 superseded that Master Direction from 1 October 2026, and the 2026 regulations contain no card-specific clause. Card receipts now follow the general rules above. For background on the change, see the FEMA export regulations update.

The RBI rules on export payments by card apply to any Indian exporter whose overseas buyer pays with a card, and to the banks and aggregators that process the payment. Which aggregator rules apply depends on how the card payment is settled, so the route matters more than the card itself.

An export payment by card moves from the buyer's card issuer, through the card network, to an acquiring bank or aggregator, and then to the exporter's bank account in India. The exporter's AD bank then updates the EDPMS entry. The steps below follow the RBI rules at each stage.

1. Raise an invoice for the full export value and check which route the card payment will take: a domestic checkout settled in rupees, a PA-CB, or your own bank.
2. If you use a non-bank aggregator, check that it is authorised or has an application pending with RBI, since a non-bank must apply for authorisation (paragraph 5(b)). See how to check RBI authorisation.
3. Complete the aggregator's merchant due diligence. Where your KYC record is not available in CKYCR and annual turnover is up to Rs 40 lakh or annual export turnover is up to Rs 5 lakh, a simpler process using PAN, contact point verification and one officially valid document may be used (paragraph 13(b)).
4. The buyer pays by card. Under the PA-CB route, proceeds go to the aggregator's Inward Collection Account with an AD Category-I bank (paragraph 16(a) and Table 1).
5. Funds are settled to your bank account, and the aggregator must have validation checks so that funds due to you are credited only to your own bank account (paragraph 13(g)).
6. For services, file the EDF with your AD bank within 30 days from the end of the invoice month (Regulation 3(2)). See EDF form.
7. Your AD bank credits the receipt after checking the transaction is genuine and closes or updates the EDPMS entry (Regulation 4(2)). See EDPMS closure.

An export payment received by card needs the same documents and deadlines as any other export receipt. These are the invoice, the EDF, the transaction record your AD bank needs to close the EDPMS entry, and realisation of the full value within the set period. The card route only changes who supplies the transaction details.

When a card payment is charged back, the money returns to the buyer and the export invoice is left under-realised or unrealised. The exporter then has to recover the amount, or ask the AD bank to record a reduction in export value. An open EDPMS entry stays with the exporter until it is resolved.

• Dispute process: Every payment aggregator must have a dispute resolution mechanism with timelines for refunds, which includes responding to chargebacks raised against its merchants (paragraph 8(a)). Your agreement must set out refunds, returns and reconciliation (paragraph 8(b)).
• Buyer rights: The chargeback rights of customers remain unaffected by the escrow rules (paragraph 18(h)). Reversed and refunded transactions are routed back through the escrow account unless the merchant handles the refund directly and the payer knows.
• Refund route: Refunds go to the original method of payment unless the payer asks for another mode in the payer's own name (paragraph 10(f)). Table 1 permits refunds to the payer as a debit from the collection account.
• Reduced value: Your AD bank may allow a reduction in export value when you give reasons. For invoices up to Rs 10 lakh, the reduction may be permitted on your declaration (Regulation 6). See reduction in export invoice value.
• Unrealised value: If proceeds stay unrealised for more than one year after the due or extended date, further exports need full advance or an irrevocable letter of credit (Regulation 13). See export proceeds not realised.

Keep proof of delivery or service completion for every card sale, so you can answer a dispute within the window in your provider agreement. If a chargeback succeeds, try to recover the amount from the buyer within the realisation period. If you cannot, ask your AD bank to record a reduction under Regulation 6, or an extension under Regulation 5 while you pursue payment.

The RBI rules on export payments by card are the FEMA export regulations of 2026, the FEMA Manner of Receipt and Payment Regulations of 2023, and the Master Direction on Payment Aggregators of 15 September 2025. The older card clause in the Master Direction on Export was superseded on 1 October 2026.

• Skipping EDF: Assuming a card receipt needs no declaration. Service exporters still file the EDF within 30 days from the end of the invoice month (Regulation 3(2)).
• Wrong category: Treating every foreign card payment as PA-CB. Card payments settled in local currency by the card network are excluded (Note 2 to paragraph 4(i)(ii)). See PA-CB vs OPGSP.
• Old rules: Quoting paragraph A.3(ii) of the old Master Direction on Export as current. It was superseded from 1 October 2026 (Circular No. 20, paragraph 4).
• Large invoices: Sending a single invoice above Rs 25 lakh to a buyer who will pay through a PA-CB. The cap is per transaction (paragraph 11(d)). See PA-CB transaction limits.
• Ignoring chargebacks: Leaving a charged-back invoice open in EDPMS. Ask your AD bank to record a reduction under Regulation 6 or extend the realisation period under Regulation 5.
• Third-party cards: Accepting a card in the name of someone other than the buyer without checking. Third-party receipts need the AD bank to be satisfied with the bona fides (Regulation 8).

Every rule, deadline and form on this page is linked to its official source, checked on the dates below.

1. Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB (amended up to 22 September 2026), Regulations 1(2), 2(1) Explanation, 3(1), 3(2), 4(1), 4(2) and proviso, 5(1), 6, 8, 13 and 18(2) (checked 8 Oct 2026)
2. Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Notification No. FEMA 14(R)/2023-RB (amended up to 12 February 2025), Regulation 3(2)(I)(a) (checked 8 Oct 2026)
3. Master Direction on Regulation of Payment Aggregator (PA), RBI/DPSS/2025-26/141, 15 September 2025, Paragraphs 4(i)(ii) Note 2, 4(i)(iii), 5(a), 5(b), 8(a), 8(b), 10(d), 10(f), 11, 13(b), 13(g), 16(a), 18(h) and Table 1 (checked 8 Oct 2026)
4. A.P. (DIR Series) Circular No. 20: Export and Import of Goods and Services, RBI/2025-26/194, 16 January 2026, Paragraphs 4 and 7 (checked 8 Oct 2026)
5. Master Direction - Export of Goods and Services (FED Master Direction No. 16/2015-16, updated as on 17 July 2026; superseded from 1 October 2026), Paragraph A.3(ii) (checked 8 Oct 2026)