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Difference Between RuPay, Visa and Mastercard
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Choosing a debit or credit card can be confusing, especially when there are different payment networks to consider.
In India, you’ll mainly find three options: RuPay, Visa, and Mastercard. Each network has its own pros and cons, and they might be better suited for different situations. For example, if you travel internationally a lot, you might want to consider a different network than someone who mostly uses their card within India and wants to keep fees low.
This blog post will explain the key differences between RuPay, Visa, and Mastercard to help you pick the network that’s right for you. Let’s take a closer look at each one.
Visa vs Mastercard vs RuPay
The difference between Visa, Mastercard & RuPay lies in their focus and reach. Visa and Mastercard are global giants with widespread acceptance, ideal for international travel and online shopping, offering a variety of card options and robust security features like EMV chips and tokenization. RuPay, on the other hand, is an Indian payment system focused on domestic transactions, with lower processing fees and government backing for financial inclusion initiatives. While Visa and Mastercard cater to a global audience, RuPay is tailored for the Indian market, offering competitive local benefits.
| Feature | RuPay | Visa | MasterCard | Comparison and Differences |
| Origin | India | United States | United States | RuPay is India’s domestic payment system, while Visa and MasterCard are international payment systems. |
| Launched | 2012 | 1958 | 1966 | RuPay is relatively new compared to Visa and MasterCard, which have decades of global presence. |
| Ownership | National Payments Corporation of India (NPCI) | Visa Inc. | MasterCard Incorporated | RuPay is owned by NPCI, a not-for-profit organisation, whereas Visa and MasterCard are publicly traded companies. |
| Market Coverage | Primarily India | Global | Global | RuPay has a strong presence in India, whereas Visa and MasterCard have extensive global coverage. |
| Acceptance | Over 600,000 merchants in India | Over 46 million merchants worldwide | Over 30 million merchants worldwide | Visa and MasterCard have wider acceptance globally compared to RuPay. |
| Card Types | Debit, Credit, Prepaid | Debit, Credit, Prepaid, Business, Corporate | Debit, Credit, Prepaid, Business, Corporate | All three offer a range of card types, but Visa and MasterCard offer more specialised business and corporate cards. |
| Transaction Charges | Lower for domestic transactions | Higher compared to RuPay for everyday transactions | Higher compared to RuPay for everyday transactions | RuPay has lower transaction charges in India, benefiting local consumers and merchants. |
| International Transactions | Limited but expanding | Widely accepted internationally | Widely accepted internationally | Visa and MasterCard have a significant advantage in international acceptance over RuPay. |
| Security Features | EMV chip, OTP for online transactions | EMV chip, Tokenisation, Zero Liability Policy | EMV chip, Tokenisation, Zero Liability Policy | Visa and MasterCard have advanced security features like tokenisation and zero liability policies. |
| Customer Support | Primarily through Indian banks and NPCI | 24/7 global support, extensive helpline services | 24/7 global support, extensive helpline services | Visa and MasterCard offer extensive global support, while RuPay’s support is strong domestically with growing international services. |
| Innovation and Technology | Focus on digital India initiatives | Leading in contactless payments, mobile wallets | Advanced in fintech, AI-driven fraud detection | Visa and MasterCard lead in global payment innovations, while RuPay focuses on India-specific innovations and services. |
| Rewards and Offers | Focus on local offers and discounts | Extensive global rewards and loyalty programs | Extensive global rewards and loyalty programs | Visa and MasterCard offer more comprehensive global rewards and loyalty programs |
| Partnerships | Indian banks, local merchants, government schemes | Global banks, airlines, retail chains, hotels | Global banks, airlines, retail chains, hotels | Visa and MasterCard have a broader range of international partnerships. |
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What is a RuPay Card?
RuPay cards are a domestic payment network introduced in India by the National Payments Corporation of India (NPCI) in 2012. Unlike Visa and Mastercard, which are international payment processors, RuPay cards are tailored for transactions within India. They operate similarly to debit and credit cards from major banks, enabling users to make purchases at stores, withdraw cash from ATMs, and shop online at participating websites. A significant advantage of RuPay cards is their emphasis on lower transaction fees compared to international networks, which can benefit both consumers and merchants.
What is a Visa Card?
Visa cards are a widely accepted payment method around the world. They work by connecting to the Visa network, a large electronic system for transferring money electronically. Visa itself doesn’t give out the cards directly. Instead, they partner with banks and credit unions who create and offer Visa-branded cards. These cards can be credit cards, debit cards, prepaid cards, or even gift cards.
A typical Visa card is a rectangular plastic card with the Visa logo clearly shown. It has a unique 16-digit number, an expiration date, the cardholder’s name, and often a security chip for extra protection. You use the card by swiping it or tapping it on a special reader for contactless payments. In the background, the Visa network securely sends the transaction information between the store and your bank for approval and completion.
Using a Visa card has several advantages:
- A
Wide Acceptance
Visa has a huge network around the world, so you can use your card at millions of stores. This makes it very convenient, especially when traveling or shopping online.
- B
Security Features
Visa prioritises security by using features like chip technology and monitoring for fraud to keep your financial information safe during transactions.
- C
Rewards Programs
Many Visa cards offer programs that let you earn points, miles, or cash back on your purchases.
- D
Convenience
Contactless payment options with Visa cards let you make quick and easy transactions by just tapping your card.
What is a Mastercard?
Similar to RuPay and Visa, Mastercard isn’t the physical card you hold, but rather a network that powers transactions behind the scenes. Think of it as a large system that works in the background to make secure and convenient electronic payments possible. Many businesses around the world accept Mastercard, indicated by their display of the Mastercard logo.
Here’s a breakdown of how Mastercard works:
-
Partnerships
Mastercard collaborates with various banks and credit unions. These financial institutions issue Mastercard-branded credit, debit, and prepaid cards to their customers.
-
Transaction Processing
When you use your Mastercard at a store that accepts Mastercard, the transaction details are sent through Mastercard’s secure network.
-
Authorisation and Settlement
Mastercard acts as the intermediary, verifying your card information with your issuing bank and ensuring there are enough funds available. Once approved, the transaction is settled, meaning funds are transferred from your bank to the merchant’s bank.
Mastercard’s extensive network allows for smooth global transactions, making it a major player in the world of finance.
How to Choose the Right Card
Consider Your Spending Location
- Staying Local? If you mostly use your card for purchases within India, a RuPay card might be a budget-friendly option due to lower fees.
- Going Global? For frequent international travellers, Visa and Mastercard offer wider acceptance at merchants abroad.
Rewards and Perks
- Explore the different rewards programs offered by Visa and Mastercard. These can include cashback options, travel benefits, and special privileges.
- Choose the card that best suits your lifestyle and spending habits by considering which features are most valuable to you.
Fees
It’s important to compare different credit cards and the fees they come with. This includes annual fees, interest rates, and any extra charges specific to the network the card uses. Make sure the fees associated with the card fit your budget and don’t conflict with your financial goals.
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Frequently Asked Questions (FAQs)
Can I switch my RuPay card to a Visa card?
Maybe. It depends on your bank. Contact your bank to see if they offer Visa debit cards and what the process is for switching.
Can RuPay replace MasterCard and Visa?
Unlikely in the near future. Visa and MasterCard have a much larger global presence. However, RuPay is growing in popularity within India.
Can we use both RuPay and Visa cards?
Absolutely! You can have both a RuPay card for domestic transactions and a Visa card for international spending or online purchases from international websites.
Authors
Priyanka Rao
Priyanka Rao is a content strategist for Jupiter.Money, and specializes in writing on topics related to finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms. In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.
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