The five accused are from Mumbai and were in Vadodara for the last couple of days, police said.
Police seized 546 blank ATM cards, 167 debit cards, a car and other materials including swiping writer, electronic card system printer and a laptop worth around Rs six lakh from these persons last evening, city police commissioner Satish Sharma told PTI.
Acting on a tip-off, the special operation group (SOG) kept a watch on the movements of these persons for the last two days, as they were trying to make purchases from the shops with the help of these cards, he said.
The seized ATM and debit cards contained some data which was fed on it by this gang after hacking websites containing the information of accounts and transactions of unsuspecting customers, SOG sub-inspector R R Chaudhary said.
"These arrested persons might have stolen data of the victims (those who owned and used it for making purchases from the stores and shops abroad) by hacking the websites which was then fed into the blank cards through sophisticated machines," he added.
Most of the websites were hacked from the US, Italy, Spain and other countries, he said.
Police is now investigating the matter and is also trying to find out as to from where these people got the cards in such a large number.
Those arrested have been identified as - Nitin Igle, Mazharali Saiyed, Satish Manga, Mohmmed Mohsin Sulemani and Suraj Dantani.