NEW CREDIT CARD RULES FROM TODAY: MASTERCARD, RUPAY, OR VISA — FIND OUT WHICH NETWORK SUITS YOU BEST

Starting today, September 6, 2024, credit cardholders in India can choose their card network—Mastercard, RuPay, or Visa—when applying for a new card or renewing an existing one.

This new flexibility comes as part of the Reserve Bank of India's (RBI) initiative to enhance customer choice and foster competition in the digital payments space.

Adhil Shetty, CEO of BankBazaar.com, noted, "Choosing the right card network depends on one's personal needs and lifestyle. Visa and Mastercard are ideal for international transactions and premium perks. RuPay, on the other hand, is great for domestic spending and offers cost-effective solutions."

Why the RBI made this change

The RBI's March 6 circular aims to increase competition among card networks and provide consumers with more options.

By ending exclusive arrangements between banks and card issuers, the RBI ensures that customers have the freedom to select the network that best suits their needs. '

This move is intended to improve service quality and offer more tailored financial products.

Flexibility for new and existing cardholders

The RBI's guidelines apply to both new applicants and existing cardholders.

This means:

New card applicants: When applying for a new credit card, customers can now select their preferred network—Mastercard, RuPay, or Visa.

Existing Cardholders: They can choose a different network during the card's renewal process, giving them the option to switch networks if desired.

Several banks, including YES Bank and Bank of Baroda (BOBCARD), have already adopted these changes.

Customers applying for credit cards with these banks can select their network preference online or offline.

Exemptions

While the new rules are broadly applicable, there are some exemptions:

Card issuers with fewer than 10 lakh active cards are not required to comply with these guidelines.

Issuers that operate their own authorised networks are also exempt.

Choosing the right card network

Visa and Mastercard: May benefit frequent travellers

Global presence: Visa and Mastercard offer extensive international acceptance, covering over 200 countries.

Travel benefits: Both networks provide premium perks such as lounge access, travel insurance, and global merchant discounts.

Higher transaction fees: However, expect to pay higher fees, especially for foreign currency transactions.

RuPay: May be ideal for domestic use

Cost-effective: RuPay cards have lower transaction fees, making them budget-friendly.

Integration with UPI: Seamless digital payments in India, thanks to UPI integration.

Expanding reach: RuPay is growing internationally through partnerships with Discover and JCB.

2024-09-06T08:21:03Z dg43tfdfdgfd