diff --git a/crates/router/src/core/payment_methods/cards.rs b/crates/router/src/core/payment_methods/cards.rs
index fad3e6d918..046393b2f6 100644
--- a/crates/router/src/core/payment_methods/cards.rs
+++ b/crates/router/src/core/payment_methods/cards.rs
@@ -4058,21 +4058,17 @@ pub async fn set_default_payment_method(
 }
 
 pub async fn update_last_used_at(
-    pm_id: &str,
+    payment_method: &diesel_models::PaymentMethod,
     state: &routes::SessionState,
     storage_scheme: MerchantStorageScheme,
 ) -> errors::RouterResult<()> {
     let update_last_used = storage::PaymentMethodUpdate::LastUsedUpdate {
         last_used_at: common_utils::date_time::now(),
     };
-    let payment_method = state
-        .store
-        .find_payment_method(pm_id, storage_scheme)
-        .await
-        .to_not_found_response(errors::ApiErrorResponse::PaymentMethodNotFound)?;
+
     state
         .store
-        .update_payment_method(payment_method, update_last_used, storage_scheme)
+        .update_payment_method(payment_method.clone(), update_last_used, storage_scheme)
         .await
         .change_context(errors::ApiErrorResponse::InternalServerError)
         .attach_printable("Failed to update the last_used_at in db")?;
diff --git a/crates/router/src/core/payments/helpers.rs b/crates/router/src/core/payments/helpers.rs
index 93876cdd54..9802860ef9 100644
--- a/crates/router/src/core/payments/helpers.rs
+++ b/crates/router/src/core/payments/helpers.rs
@@ -1769,11 +1769,11 @@ pub async fn retrieve_payment_method_with_temporary_token(
 pub async fn retrieve_card_with_permanent_token(
     state: &SessionState,
     locker_id: &str,
-    payment_method_id: &str,
+    _payment_method_id: &str,
     payment_intent: &PaymentIntent,
     card_token_data: Option<&CardToken>,
     _merchant_key_store: &domain::MerchantKeyStore,
-    storage_scheme: enums::MerchantStorageScheme,
+    _storage_scheme: enums::MerchantStorageScheme,
 ) -> RouterResult<api::PaymentMethodData> {
     let customer_id = payment_intent
         .customer_id
@@ -1827,7 +1827,7 @@ pub async fn retrieve_card_with_permanent_token(
         card_issuing_country: None,
         bank_code: None,
     };
-    cards::update_last_used_at(payment_method_id, state, storage_scheme).await?;
+
     Ok(api::PaymentMethodData::Card(api_card))
 }
 
diff --git a/crates/router/src/core/payments/operations/payment_response.rs b/crates/router/src/core/payments/operations/payment_response.rs
index 4b529d2b39..b7a1ffb7c5 100644
--- a/crates/router/src/core/payments/operations/payment_response.rs
+++ b/crates/router/src/core/payments/operations/payment_response.rs
@@ -115,6 +115,21 @@ impl<F: Send + Clone> PostUpdateTracker<F, PaymentData<F>, types::PaymentsAuthor
             .and_then(|billing_details| billing_details.address.as_ref())
             .and_then(|address| address.get_optional_full_name());
 
+        if let Some(payment_method_info) = &payment_data.payment_method_info {
+            if payment_data.payment_intent.off_session.is_none() && resp.response.is_ok() {
+                payment_methods::cards::update_last_used_at(
+                    payment_method_info,
+                    state,
+                    merchant_account.storage_scheme,
+                )
+                .await
+                .map_err(|e| {
+                    logger::error!("Failed to update last used at: {:?}", e);
+                })
+                .ok();
+            }
+        };
+
         let save_payment_call_future = Box::pin(tokenization::save_payment_method(
             state,
             connector_name.clone(),