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Important Difference Between RuPay, Visa and MasterCard You Should Know
- Published on: 13 Jun 2024
Understanding the difference between RuPay, Visa card and MasterCard is crucial before stepping into the world of finance. These payment networks link the merchant and the card issuer, so making a careful decision is imperative.
Moreover, any additional perks you can enjoy on your cards depend on your payment network. Understanding how these payment networks work to facilitate your debit and credit card journey can help maximise your benefits.
Here is a quick overview and details of the top payment networks in India to choose from.
In simple terms, these networks mediate between you and the merchant to ensure secure fund transfer from one account to another. All financial institutions offering credit and debit cards have an association with one or more payment networks.
When you use your credit card to make a payment, the network partner verifies that you have sufficient funds available to make the payment. Once your issuer confirms and approves the transaction, the network relays the same to the merchant and the transfer is processed.
It is crucial to note that merchants don’t have to accept all payment networks. You cannot use the card if your issuer’s payment network is not accepted at the store.
These payment networks offer different credit card experiences because of the differences in their features. Here is an overview of their distinguishing features.
The primary difference between these networks is that Visa and MasterCard are international payment networks, but RuPay is a domestic network for India. However, RuPay has now entered the global market. Nonetheless, its global acceptance isn’t as wide as MasterCard or Visa.
Another key difference between them is the cost involved in using their services. As an international payment network, Visa and MasterCard charge the bank in dollars. This fee is converted into Indian currency, which increases the cost you bear.
However, RuPay, being a domestic network, has an advantage here. The cost is in national currency only, which reduces the financial burden you have to shoulder. Because of this, it also promotes independence from the foreign payment network.
The payment network for RuPay credit cards spreads across India, but Visa and MasterCard have international grids. A larger network across the border increases the risk of data breaches and identity theft. However, both international networks employ robust security measures and provide emergency services to overcome this drawback.
By knowing the difference between RuPay, Visa card and MasterCard, you can choose a card based on their benefits. If you prefer a credit card with international network benefits, choose Visa or MasterCard. You can get a RuPay credit card for domestic transactions and lower fees and charges.
Based on all this information, you can choose the right network partner as per your requirements. However, remember that the primary benefits of your card depend on the issuer. So, it is crucial to prioritise choosing the right issuer. One of the leading options you can choose is the Fibe Axis Bank Credit Card.
This is India’s first numberless metal credit card that ensures better security of your details, reducing the risk of misuse. You can also link with UPI and enjoy many lucrative perks, like 3% cashback on local commute, entertainment and food delivery expenses.
All other transactions earn 1% cashback and help you save more on all your everyday online and offline payments. In addition, you get complimentary access to domestic airport lounges 4 times in a calendar year and a 1% fuel surcharge waiver. Download the Fibe App now to apply and access all these benefits and more.
While they provide a similar basic facility of secure fund transfer, you can enjoy different additional services. Both Visa and MasterCard offer an emergency travel assistant, emergency card replacement and cash advance facility. However, with Visa, you can also get roadside dispatch as an emergency facility.
In addition, the travel benefits vary significantly. However, note that the perks offered by these payment networks are in addition to the ones offered by the issuer. As such, you must choose the right issuer to get maximum benefits.
RuPay is an indigenous payment card network within India, while the Visa network spreads internationally. Due to this, Visa has higher costs and risks compared to RuPay.
Merchants have the option to accept payments only from select payment networks. Additionally, RuPay is primarily for the Indian domestic market and has limited international acceptance.
