In the world of digital transactions and card-based currency, one question emerges as a beacon of curiosity What sets apart the trio of RuPay, Mastercard, and VISA cards?
India is dominated by RuPay, Mastercard, and VISA cards but out of these all Rupay card is one of the most used cards.
While Mastercard and VISA, hail from the United States, Rupay is a home brand that is also a leading card option for Indians.
In this article, we will discuss what is the difference between Rupay, Mastercard, and VISA card. But first, let’s find out What is Payment Network Card and much more.
Table of Contents
What is a Payment Network Card?
A Payment Network Card is a financial instrument that facilitates electronic transactions between consumers, merchants, and financial institutions.
It acts as a bridge between the exchange of funds, allowing individuals to make purchases, withdraw cash, or perform other financial transactions without the need for physical currency.
These cards are linked to banks, which serve as the underlying infrastructure that enables the seamless transfer of funds.
When a payment network card is used, the network verifies the transaction, authorizes the payment, and facilitates the transfer of funds from the cardholder’s account to the merchant’s account.
The card itself may come in various forms, such as credit cards, debit cards, prepaid cards, or specialized cards like travel cards.
How Does Payment Network Work?
A Payment Network Card operates through a complex yet seamless process that involves multiple entities and steps to facilitate electronic transactions.
Here’s a breakdown of how a payment network card works:
Card Issuance
A financial institution, such as a bank or NBFCs, issues a payment network card to an individual. The cardholder’s information, including their name, card number, expiration date, and security code, is encoded onto the card’s magnetic stripe or chip.
Cardholder’s Account
The card is linked to the cardholder’s bank account, either as a debit card connected to a savings account or as a credit card with a credit limit.
Merchant Transaction
When the cardholder purchases from a merchant, they present their card. The merchant’s point-of-sale (POS) terminal reads the card’s information.
Authorization Request
The merchant’s POS terminal sends an authorization request to the payment processor, which then forwards the request to the cardholder’s bank through the payment network.
Bank Verification
The cardholder’s bank verifies whether the transaction can be approved based on the available funds (in the case of debit cards) or credit limit (in the case of credit cards).
Authorization Response
The cardholder’s bank sends an authorization response back through the payment network, indicating whether the transaction is approved or declined.
Transaction Completion
If the transaction is approved, the merchant’s POS terminal generates a receipt for the cardholder’s PIN entry.
Settlement Process
At the end of the business day, the merchant batches the approved transactions and sends them to their acquiring bank, which, in turn, sends them to the payment processor.
Funds Transfer
The payment processor processes the transactions and transfers the funds from the cardholder’s bank to the merchant’s bank.
Comparison Between VISA/Mastercard & Rupay
The following is a detailed comparison between VISA/Mastercard & Rupay-
| Criteria | VISA/Mastercard | RuPay |
| Origin and Background | International payment networks | Indigenous card payment network in India |
| Acceptance Network | Globally accepted | Widely accepted within India |
| Coverage | Extensive network of merchants worldwide | Focus on acceptance within India |
| International Acceptance | Accepted in numerous countries globally | Limited international acceptance |
| Cost-effectiveness | Generally higher fees | Cost-effective and affordable |
| Card Variants | Various card types and offerings | Variants available for different needs |
| Additional Features and Benefits | Rewards programs, perks, and benefits | Special features and tie-ups |
| Rural and Semi-Urban Penetration | Relatively lower | Increased focus and penetration |
| Availability | Widely available | Availability in specific regions |
| Accessibility | Easy access for international travel | Mainly suited for domestic use |
FAQ
Yes, both VISA and Mastercard are widely accepted in India. These international card networks have a strong presence and are recognized by a vast number of merchants, making them convenient options for domestic transactions as well as international.
Yes, RuPay cards have gained acceptance for international transactions as well. Many countries and international payment aggregators accept the RuPay debit and Credit card for transactions.
RuPay cards often offer cost-effective options due to their association with domestic banks and financial institutions. They have lower transaction fees compared to international counterparts like VISA and Mastercard.
Yes, RuPay cards can be used for online shopping. Many e-commerce platforms and websites accept RuPay cards as a mode of payment, enabling cardholders to make secure online purchases.
VISA and Mastercard, being global card networks, have established extensive networks and partnerships worldwide.credit
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
Our main goal is to empower individuals through financial education. We believe that everyone should have the opportunity to build a strong financial foundation. Whether you’re a seasoned investor or just getting started, we provide articles, guides, and resources to help you navigate the financial landscape.
I invite you to join our community of financially savvy individuals. Feel free to ask questions, engage with our content, and explore the topics that matter to you. Together, let’s take control of our financial futures.
