When you apply for a new credit or debit card, there's always a choice you must make between Visa, Mastercard or RuPay. Many simply tick one box on the card application form without giving it much thought, or let the bank simply make the choice by not choosing any one specifically. Many aren't sure what Visa, Mastercard or RuPay on the debit or credit card means, or how they are similar or different to each other. And if you are wondering which is a better option for you, DNA Money helps you find out.
What they are
The first thing to know is Visa, Mastercard or RuPay do not issue you a credit or debit card. Cards are issued by banks. Visa, Mastercard and RuPay are payment networks. Ranjit Punja CEO and Co-Founder of CreditMantri says, "All three are payment networks. Mastercard and Visa are global networks, whereas RuPay was launched by National Payments Corporation of India (NPCI) in 2012. All debit and credit cards issued are associated with one of these payment networks. When a cardholder uses a debit or credit card, the transaction goes to the respective network and then is routed to the respective issuing bank for verification and approval. After this, the payment is made."
In short, these facilitate processing of payments between banks and merchants for purchases made with the cards.
What they do
The bank decides on the terms. These include the rate of interest on the card, fees, charges, grace period in case of credit cards and rewards like cashback, points or miles.
Aditya Kumar, Founder & CEO Qbera.com says, "These financial firms provide banks and consumers with a platform to carry out payments and transactions. They primarily act as payment gateways, allowing transactions to take place through secure network channels, while also enabling banks to keep track of transactions made by consumers. Banks that tie up with these card associations are usually necessitated to make quarterly or half-yearly payments to them, for services that are correspondingly offered."
Benefits
All three different types of network providers offer different types of benefits. Broadly speaking, there are more similarities amongst them than differences.
Kumar says, "Benefits to consumers are specific to individual benefits offered by these card associations / payment networks. Offers and benefits can be different from one another, and it isn't usually the case that one is better than the other, although Visa and MasterCard are known to offer impressive benefits to consumers from time to time. These card associations tie up with banks to offer benefits to their customers."
Types of Visa cards
According to a spokesperson from Visa India there are five different types of Visa cards: Classic, Gold, Platinum, Signature and Infinite. Classic and Gold offer base value benefits, Platinum offers base value plus enhanced benefits. While Signature offers enhanced privileges and benefits and Infinite offers exclusive and experiential benefits.
Higher the level of card you choose, better will be the benefits you get. For instance, most Visa cards come with base value benefits such as 24/7 by Visa's global customer assistance services, emergency cash and card replacement.
Platinum visa cards come with base value benefits plus, travel assistance, special offers for shopping, dining, travel and entertainment establishments and Platinum concierge to name a few.
Signature Visa card comes with Platinum level, plus medical and legal referral and assistance, special deals, discounts and privileges and airport lounge access and concierge - a 24/7 service.
Visa Infinite provides the same benefits as Signature but also includes a suite of super-premium benefits designed to appeal to high-net-worth individuals.
This means if you are carrying any bank's Visa debit or credit card, you can avail the benefits mentioned above as per your Visa card level. So, if you have a Signature Visa card, go enjoy the free airport lounge access the next time you are at the airport.
Types of RuPay Cards
RuPay debit has Classic and Platinum tier. RuPay credit has Classic, Platinum and Select tier.
Classic card comes with benefits like a comprehensive accidental insurance cover up to Rs 1 lakh and exclusive merchant offers.
Platinum comes with exclusive gift vouchers from various brands, cashbacks across restaurants and eateries, utility bill payments, comprehensive insurance cover upto Rs 2 lakh, exclusive merchant offers and 24/7 concierge services.
Select cards come with Platinum card benefits plus comprehensive insurance cover upto Rs 10 lakh.
Types of Mastercard
Mastercard too offers different tiers like base, World and World Elite. Base perks are pretty similar to Visa, give or take a few. Mastercard's World level includes additional perks such as a dedicated personal travel advisor (similar to Visa Premium cards) while World Elite, the top level, comes with all the benefits of the lower levels.
Acceptance
Another parameter to consider while choosing a network provider is acceptance of the card. Punja says, "The only difference users may see is the acceptance of the card. Visa and Mastercard can be used in multiple countries and overall there is much wider acceptance for them at present. But RuPay is growing its network. RuPay is an indigenous Indian payment network, whereas Visa and Mastercard are international payment networks."
RuPay has been increasingly popular within India, especially in semi-urban and rural India, as RuPay is cheaper for merchants and hence they benefit when users use it.
There are other payment networks as well - American Express and Discover are equally popular internationally. American Express also issues its own credit and charge cards, as well are network providers for various bank tie-up cards in India. RuPay has a Global card with Discover, Diners and Pulse Network and accepted in many countries/territories worldwide.
Data storage
All three types of cards offer various types of benefits based on the tier of the card. However, one difference between Visa, Mastercard and RuPay is regarding data. RuPay is a domestic payments network, and data of consumers is stored within the country. Indian regulators and government have been pushing for foreign companies to store Indian data within the country. Following this both Mastercard and Visa have started storing data on new transactions within India.
Security
If you take security into account, all three network providers have various types of technologies in place. Visa spokesperson says, "Verified by Visa is an authentication system designed to confirm the identity of the cardholder when a Visa card is used online. By requesting a password known only to the cardholder, the bank can verify that the genuine cardholder is entering their card details into an eCommerce website. RuPay has an One-Time-Password based two factor authentication system, while Mastercard has something called Mastercard Securecode. Punja says, "Also, evaluations claim that RuPay is more secure than Visa and Mastercard, which could be a deciding factor too."
What should you do
The truth is no one network provider is better than the other, they are just offer different benefits. There's easily a place for all three type of network providers in our wallets. Irrespective of which logo you have on your debit or credit card, it won't make a difference unless you actually use those benefits. So, go ahead and make your dinner reservation using your free credit card concierge service.
Choose based on features
- Some common features across the networks include emergency cash, card replacement, offers on shopping, dining and entertainment, free airport lounge access, insurance, personal travel advisor, etc
- Since RuPay is newer, the acceptance may not be as wide as Visa and Mastercard for now. This could be a problem while travelling abroad
- While all networks are equally secure, the security features may vary across networks
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