What is a payment network?
When you use your debit card, you may notice that it has a logo of either RuPay, Visa, or Mastercard. These are payment networks that enable providers to process transactions. Visa and Mastercard are international payment networks, whereas RuPay is India’s first domestic payment network. Let's explore the differences between these networks in this article.
What is RuPay Card?
The RuPay Card is an Indian domestic card introduced by NPCI in 2012. As an Indian payment network, RuPay cards are accepted exclusively within India. Its launch aimed to decrease the dominance of international payment networks such as Visa and Mastercard. Despite similarities to Visa and Mastercard, RuPay operates faster due to its domestic acceptance only.
What is Visa & Mastercard?
Similar to RuPay, Visa and Mastercard are also payment networks. However, Visa and Mastercard are international payment networks that offer payment services to many card issuers worldwide. The main distinction is that both Visa and Mastercard are American payment networks, and their debit cards are accepted globally in over 200 countries.
RuPay Vs Visa Vs Mastercard
RuPay, Visa, and Mastercard are payment networks that partner with banks to issue debit cards. To obtain a RuPay Debit Card, you can apply through the bank where you have a savings account, and they will issue you a card based on your eligibility. However, RuPay cards function differently compared to Visa and Mastercard. They are accepted only within India and offer faster processing times. Here are the key differences between RuPay, Visa, and Mastercard:
- Acceptance: As mentioned earlier, RuPay is an Indian payment network accepted exclusively within India. In contrast, Visa and Mastercard are international payment networks accepted worldwide. RuPay cards are specifically designed for domestic use and cannot be used for transactions outside of India.
- Fees & Charges: RuPay offers its services to banks without any charges, whereas banks have to pay a quarterly or joining fee to access services from foreign payment networks. Consequently, with RuPay, there are no processing or transaction charges imposed. However, the bank may charge an annual fee for using a RuPay debit or credit card. Nonetheless, the overall fees and charges associated with RuPay cards are generally lower than those for Visa or Mastercard.
- Security: When it comes to security, RuPay cards are often considered more secure than Visa and Mastercard. One major reason is that RuPay cards are used exclusively within India, and the data is shared only with national networks. In contrast, for Visa and Mastercard transactions, the data is shared internationally, increasing the risk of data theft or phishing.
- Processing Time: As a domestic payment network, RuPay cards operate faster compared to Visa and Mastercard. This is because when you make a transaction, the data is processed by the payment network for verification. With RuPay, the data is processed within the country, leading to shorter processing times. However, with Visa and Mastercard, the data is sent to servers located outside the country, which increases processing time. Therefore, for domestic transactions, RuPay cards are often a preferable option over Visa or Mastercard.
Benefits Of Rupay Cards:
RuPay is an Indian payment card introduced by the National Payments Corporation of India (NPCI). It offers benefits to cardholders and the Indian financial system. RuPay cards are accepted at many ATMs, stores, and online sites across India, making them handy for daily purchases. Compared to global cards like Visa and Mastercard, RuPay cards have lower transaction fees. This means they're more affordable for merchants and banks, which in turn offers cheaper services for cardholders.
Benefits of Visa Card:
Visa cardholders enjoy various benefits, such as discounts at select retailers, exclusive access to special events, and the convenience of not needing to carry cash. Visa cards are widely accepted by numerous businesses, making them a convenient payment method for various purchases, from groceries to travel expenses. Additionally, they offer high levels of safety and security, incorporating state-of-the-art features to safeguard against fraud and theft.
Benefits of Mastercard:
There are many reasons to use a Mastercard, especially if you travel often. Mastercard is widely accepted worldwide, making it easy to use wherever you go. It also offers various benefits like travel insurance, extended warranty protection, and concierge services. You can use your Mastercard to make purchases both online and in person, anywhere that accepts Mastercard. Additionally, Mastercard provides rewards and perks such as cashback on certain purchases and discounts at select retailers. If you're part of a Mastercard Rewards program, you can earn points on every purchase, which can be redeemed for free travel, merchandise, or cash back. Overall, whether you're seeking convenience, security, or rewards, a Mastercard is a great choice.
FAQs
Q. Can RuPay replace MasterCard and Visa?
Ans. All transactions made with domestic bank debit and credit cards are routed through network switches managed by Mastercard and Visa, both international financial services corporations headquartered in other countries. However, the introduction of RuPay would eliminate the necessity for this connection.
Q. Is the RuPay card accepted at all ATMs?
Ans. The RuPay Debit card is accepted at all point-of-sale (POS) terminals, ATMs, and online retailers within India. Additionally, it can be used for transactions overseas at any POS terminal, ATM, or online store that supports Discover Financial Services (DFS).
Q. Where can I use my RuPay card?
Ans. The United Arab Emirates, Bhutan, and Singapore currently accept RuPay-based cards and UPI in their countries. Nepal, on the other hand, only allows the use of RuPay cards. In response to a question about plans to make RuPay and UPI available worldwide, the minister confirmed that there is indeed such a plan in consideration.
Q. Who can get a RuPay card?
Ans. Indian NRIs (Non-Resident Indians) are also eligible to apply for the RuPay card, along with locals. To apply for a RuPay card, individuals must have one of the following types of accounts: Current Account, Savings Account.