October 16, 2024 · 11 mins read
Santosh Kumar
In the current digital era, credit and debit cards have become essential, and their importance cannot be understated. With convenience, enhanced security, and the opportunity to earn rewards, credit cards and debit cards have intertwined in our lives. We prefer cashless payment to fulfil our daily needs and enjoy life's luxuries.
Credit cards and debit cards are the primary way consumers pay for purchases today, and the number of credit card users is increasing daily. The current scenario is that nearly everybody owns a credit or debit card, and if you have one, you have paved the way for simplifying your financial needs and notching up your lifestyle. But have noticed logos like Visa or RuPay Card in your credit or debit card? Any idea what these logos specify? Does it affect you in any way?
These logos represent the payment network, where the financial network processes your transactions. Whether you have not noticed such a logo or even if you haven't thought much about its significance, this is for you.
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While opting for cashless payment, have you ever thought about the behind-the-scene process of money transactions? Do you know that large networks of people and companies are working round the clock to enable seamless online payments? Yes, these networks that enable electronic fund transfer between individuals and organisations are called payment networks. These networks interconnect banks, credit card companies and financial institutions to ensure secured cash flow from one party to the other.
Rupay, Visa, MasterCard, and American Express are some of the common payment networks that are available in India, and they ensure secured, quick, cashless transactions. There are many payment networks, and each operates differently and has merits and demerits.
Launched in 2012 and owned by the National Payments Corporation of India (NPCI), RuPay is a secured payment network from India. RuPay stands for Rupees and Payment and is accepted at shops, ATMs and online platforms. RuPay is a great choice for electronic payment inside and outside India. NPCI partnered with Discover Financial Services of the US, Pulse and Union Pay of China, and JCB of Japan to enable international payments. RuPay is internationally accepted in many countries, including Singapore, Bhutan, Maldives, UAE, Bahrain, Saudi Arabia, Myanmar, South Korea, Nepal, the UK and Russia.
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RuPay offers credit and debit cards under three categories- Classic, Platinum and Select.
1. RuPay Classic is the basic type with acceptance among almost all the merchants in India along with few offers.
2. RuPay Platinum offers airport lounge access and comprehensive insurance coverage of up to ₹2,00,000 apart from the basic features available in the classic type.
3. RuPay Select is a top-tier scheme that is independent of bank partnerships. The card is independent of its issuing bank and lets you enjoy the benefits of multiple cards under one package. This is a great option if you want to use the benefits of multiple card schemes but don’t want to apply for multiple cards.
While RuPay debit cards are issued by most banks across India, RuPay credit cards are issued by more than 18 banks in India. RuPay cards have several mind-blowing features.
It is a contactless payment feature that uses RFID technology to help users pay without physically swiping or inserting the card into a point-of-sale device. The users can wave the card in front of contactless payment terminals to make the payment and this feature holds good for transactions up to 2000 rupees.
This is a great feature if you use smart devices like smartwatches. You can pay using your smart devices and need not carry physical cards wherever you go. A smartwatch incorporating the RuPay chip enables you to enjoy this tap-and-pay transaction. This special feature is a boon for the modern generation to make transactions up to ₹5,000 without any PIN verification. Above ₹5,000, you will need a PIN to perform the transaction.
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One great drawback of using cards is sharing card details. But with this NPCI Tokenisation System, you can keep RuPay card details in RuPay Network Secure Vault, and you can share the reference ID and not the actual card details with the merchant. Cool right.
With the launch of BharatQR in September 2016, you can make transactions without physical cards via the QR code-based payment system. It is supported on Android and iOS devices and has become a super easy option for most smart device users.
RuPay has included advanced features like EMV chip technology, two-factor authentication, SMS alerts and notifications to make transactions safer.
Visa is a US-based multinational payment gateway with international acceptance in more than 200 countries and over 14,500 financial institutions. Launched in 1958 as BankAmericard and named as Visa in 1976, Visa payment network is headquartered in San Francisco, California. It offers credit, debit, prepaid, and gift cards. Visa cards benefit you in many ways and have 50 layers of security, which is processed in just 2 seconds. So fast!
Visa is a US-based multinational payment gateway with international acceptance in more than 200 countries and over 14,500 financial institutions. Launched in 1958 as BankAmericard and named as Visa in 1976, Visa payment network is headquartered in San Francisco, California. It offers credit, debit, prepaid, and gift cards. Visa cards benefit you in many ways and have 50 layers of security, which is processed in just 2 seconds. So fast!
There are five types of Visa Cards available and each has some unique set of features.
1. Visa Classic Card is the basic card for transactions.
2. Visa Gold Card features special offers at retail, travel and entertainment.
3. Visa Platinum Card offers global customer assistance, emergency card and cash service and bigger rewards.
4. Visa Signature Card provides global assistance to block your account in case of theft of your card, avail replacement card and emergency cash. You can also enjoy exclusive deals, discount offers, and guidance for travel, bookings, and shopping.
5. Visa Infinite Card offers higher credit limits and personalised rewards.
While each card has its perks, here are a few of the common attractive features of Visa cards.
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Can you make transactions by just tapping your card on the payment machine? Yes, the contactless payment feature of the Visa cards offers you such a convenient facility to make payments up to 5000 INR. More than that, you need a PIN. It is simple, easy and quick.
Verified by Visa is another feature that gives peace of mind to card users who question the security level of card usage. It is a password-protected authentication system in which a password known only to the cardholder will be used to confirm the cardholder's identity. It can be a password that you set for your card or an OTP that the bank sends you via SMS at the time of payment.
With the Zero Liability Policy, you are safer if your credit or debit card is lost, stolen or fraudulently used. Under this policy, you won't be held responsible for unauthorised transactions made with your account. If you experience unauthorised transactions, notify your financial institution as quickly as possible, and the issue will be verified, and replacement funds will be provided at the earliest possible. However, you are responsible for checking and reporting fraudulent transactions. However, this feature only applies to some of the Visa cards and all the transactions. Commercial cards lack this feature, and transactions not processed by Visa may not fall under this policy.
While both RuPay and Visa cards are great options for online and offline secured cashless transactions, a few key differences between Rupay and Visa Card make us choose one over the other based on our needs.
Attribute: Launch RuPay: Launched in 2012 Visa: Launched in 1958
Attribute: Country RuPay: India-based Visa: US-based
Attribute: Acceptance RuPay: Primarily accepted within India and now expanding their acceptance in various countries. Visa: Have global acceptance
Attribute: Suitable RuPay: A budget-friendly option for domestic transactions in India. Visa: Perfect for international travellers.
Attribute: Fees and charges RuPay: Lower transaction processing fees. RuPay offers services free of cost, but banks may charge you a small fee. Visa: Higher fees and charges compared to RuPay
Attribute: Processing time RuPay: Faster within India. Visa: Usually a little slower than RuPay as it has to send data to and fro from servers outside India.
Attribute: Data Security RuPay: Data is only shared with national networks. Visa: Data is shared across international borders.
Attribute: Rewards RuPay: Fewer rewards Visa: Wide range of rewards, including cashback and discounts.
Attribute: Types RuPay: 3 main varieties, namely RuPay Classic, RuPay Platinum and RuPay Select Visa: 5 main types, namely Visa Classic, Visa Gold, Visa Platinum, Visa Signature, and Visa Infinite
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Both payment networks have benefits and pitfalls, so choosing the right one that aligns with your needs is important. While opting for the payment network, analyse various aspects like lifestyle choices and transaction possibilities to decide which one to choose.
1. Usage: Dive deep into your financial needs. If you are a frequent traveller who flies to various countries, then a Visa card would be a great choice, even though with higher charges, as it is accepted in almost all countries. If you are not a traveller, then RuPay is a great option as it is budget-friendly.
2. Fees: Analyse the fees of both payment options and choose the best one. Look out for annual fees and interest rates and enquire about hidden charges before deciding.
3. Rewards: Reward is yet another option to look for. If the card offers more rewards like air miles or hotel stays, that would be a great choice for travel lovers. On the other hand, cards that give discounts on fuel charges and grocery purchases would be a great choice otherwise. So understand the reward options in both cards and choose the one with more rewards you can use.
4. Customer Service: Both Visa and RuPay cards provide customer service through the card-issuing bank. So consider the quality of the customer service provided by your bank to make the wise choice. Because, at times of conflicts or fraudulence, the bank with good customer service will resolve the issue as early as possible.
5. Acceptance: While Visa card is globally accepted, RuPay is only accepted in some countries. Even if you have to visit a particular country or countries frequently and RuPay is accepted in those countries, then RuPay would be a great choice as it is cost-effective compared to a Visa card.
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Knowing about different payment networks will help you make informed decisions using credit or debit cards. Each payment network has merits and demerits, and how it affects your financial decisions depends on your payment needs. So choose the right one and enjoy financial freedom and cashless transactions.
Which one is better, RuPay or Visa Card?
Both RuPay and Visa cards are secured payment options. But choosing the one that best suits your needs helps you enjoy its maximum benefits. Understand both systems' rewards, charges and customer service facilities and decide the one that aligns with your lifestyle, budget and financial needs.
Can I change my payment option from Visa to RuPay or vice-versa?
Yes, you can. Nowadays, most banks allow for change of network. You can contact the customer service to do so. If not you can deactivate the existing card and opt for a new card with the required payment service. You will have to pay a small charge for the new card.
What is special about the contactless payment?
With contactless payment, you need not hand over your card to someone or insert or swipe your card in the machine. And hence, there is no chance of the card missing or someone misusing it.
Does contactless payment have any demerit?
The only thing is that you cannot opt for contactless payment for higher amount transactions. Only transactions below 2000 or 5000 INR will be allowed, and the range depends on your card.
Is contactless payment secured?
Yes, it is. Even though contactless, there are security features that enable safe transactions.
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