Knowing the Difference Between Visa, MasterCard, RuPay and American Express Debit and Credit Card

November 07, 2019

Everyone uses a debit or a credit card, but have you ever noticed that each card is different and carries a different name like a RuPay, Master Card, Visa or American Express? What are these? Read on to know the difference between these cards.

A lot of people in India use a credit or a debit card issued by the banks that carry the logo of Visa, MasterCard or American Express. Do you know the significance and difference of these cards? Do you know how a visa debit card is different for a RuPay debit card? Before we get into the difference, let us first understand what these cards are.

The Visa and the MasterCard are the most popular forms of cards in India. Both Visa and MasterCard are a payment gateway that supports the payment facility to almost all the major banks from around the world. There is no major difference between a Visa and a MasterCard; they both have similar functioning and work as an ATM card. However, you must know that neither the Visa credit card nor the American Express credit card provides any credit to the users; they simply support payments.

In an attempt to reduce the dependence on the foreign payment gateway and promote the Indian payment network, the government of India introduced the RuPay cards. Today, a lot of Indian banks issue RuPay credit card, and it has been immensely popular among the Indian credit card users. Let us look at the differences between these cards:

  • One of the major difference between a RuPay card, An American Express debit card, a MasterCard and a Visa debit card is the operating cost of these cards. Since RuPay supports transactions, only within India, the merchants and the banks pay less service charge to the payment gateway as compared to other cards, which are all international payment systems.
  • The MasterCard, Visa and the American Express, which is also commonly known as Amex are American companies. So, every time you use the cards of these companies, the data is sent to the company’s server, which is located overseas for processing and verification. This sometimes can increase the processing time. However, if you use a RuPay card, the data is processed and verified in India, which reduces the processing time.
  • The banks that issue a MasterCard or a Visa card are obliged to pay a fee every quarter for joining these foreign payment networks. But with RuPay cards, the bank need not pay any fees to join the network, hence there are no processing or transaction fees involved for using these cards.
  • In terms of security, the RuPay cards are much more secured than the Amex, Visa and Master Card because its operation is limited only within India and therefore the data is shared between only national gateways. In the case of the international cards, the data is processed internationally and therefore the risk of phishing or data theft is higher.

 

DISCLAIMER

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.

Comments()