Why My ATM Card Is Not Working For Online Payment?

ATM card has many functionalities. You can use it for cashing out money at ATM, pay grocery bills and e-merchant payment. Amongst the issues and problems that we have come across. One of the frequently ask question regarding non-functional feature of an ATM card is- Why my ATM card is not working for online payment?

Over the decade, the uses of an online ATM payment features has been greatly increased. The reason behind is because its user friendly mode of payment. The payment process happens instantly giving a good user experience. The seller gets the funds immediately and your order gets shipped without taking time.

As we have experienced the multi-functional features of these card, its enjoyable as long as it goes well. When certain errors come up, or when system is not accepting our card, it’s quite frustrating.

Sometime addressing these issues and finding out the main reason behind it might be tricky. Specially when you have less knowledge about banking products and services.

You find someone reliable and that would be the bank official, of course. But, what if you have no access to bank. That’s the moment when things get tougher and if you know how to troubleshoot. That would just relieve you from any worries even if you are far away from home.

Lets find out some of the possibilities why your ATM card is not working for online payment.

Check If Card Is Not Expired.

ATM cards are normally issued for a period of 5 years. A few of them may have longer period. When the card is expired, you will not be able to do any transaction. Be it an offline transaction or an online.

Both will ceased to work from the last day of the expiring month. Usually, you should get a message alert informing you about the expiry details and letting you know the new card is on the way.

Such thing happens if you are a regular user of bank account. When the account setup is up to date, that is, when your address, identification and financial status is okay, bank normally sends out the new card when the existing expired.

Checking out your card expiry date will let you know if the card is still active and running. It can be easily seen on the front side of the card. Just below the card number which is 14 to 18 numerical digits.

Is It A Brand New Card?

Bank sends inactive ATM cards. You have to activate them over IVR over SMS, physical card activation at ATM Or through internet banking.

Not only activation of cards is sufficient. Transaction rights on international transactions, e-com need to address separately sometime. It depends on bank to bank.

Some banks activate all the services when changing the PIN other banks such as State Bank of India, has a completely different way of doing it.

As SBI account holder, you have to activate e-com transaction separately which is mention on the leaflet that delivered you along with the card. Send the message to provided number and your online card payment will be activated.

Else, contact the bank and let them do it for you.

Contact Your Bank If It happens Used Card.

Sometime when your bank account has insufficient funds due to freezing of account. Though you might be thinking you have balance in account but the payment will be declined.

There are various reasons your bank freezes your account. It could be minor issue such as regular update of account where your KYC documents are required. Or it could be serious issue such as court order of any sort of debts against you.

One thing for sure is, when you have loan overdues, bank usually put a hold on your account. This temporary hold on your account will be released only when you clear the dues.

The other reason could be the inbuilt structure of your ATM card may be damage beyond reparable. Such issue is resolved when you go for a new card.

If it’s a minor technical issue, bank may fix it for you. Setting up the payment channel would resolve it but it has to do by your bank only.

Make sure you don’t have these issues, if you have then it’s better you clear things out with the bank and continue using the card seamlessly.

The Type Of Card You’re Using.

It is seen in some card the problem of online payment is quite persistent. These cards are those card with low variant card. You can identify these card easily. It may include card with limited features such as low transaction limit, domestic cards etc.

They have the online payment options but somehow people using these variant usually face the problems. However, such problems are hardly seen in high variant cards such as Gold, Platinum and Wealth Cards of any banks. It is advisable using high variant card if you are eligible for it.

Banks set the eligibility criteria as per your income group. If you are earning around ₹30000 a month, you might be eligible for Gold Card in most of the bank. Using high variant card has its own additional benefits such as it may cover you free Personal Accidental Insurance and card protection facility.

Why Your ATM Card Is Not Working?

Other than the problems of online payment, there are numerous problems and issues you may find when using an ATM card. Some of the common issue we can think of are:

  • Expired Card: Issue solve after applying for a new card.
  • Inoperative Card: Most probably your linked account is inoperative. Activate the account.
  • Defective Card: Card need to replace with a new card.
  • Card reading issue: Sometime its technical and sometime it could be card is corrupted due to excessive used. Try applying for new card.
  • Unauthorized Card: Inherent problem, solves after getting a new one.
  • Card Activation Problem: You need to talk to your bank.
  • Ineligible Account: Select the proper account type when using in ATM.


The online card problems are quite common in most of the time. If you could find out the root cause of how it happens, you could easily fix the issue. Other time when the card is beyond reparable, its best if you go for a new card or replace it.

The above mentioned points are few of the common areas where you should explore if you face the issue. Hopefully, you don’t have to apply for a new one. As you have to wait for a while to get it delivered to you.

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