RuPay vs Visa: Key Difference and Which One to Choose
Digital payment methods are opening alternative ways for cashless payments across the country. The government is taking initiatives to make the payment process cashless as much as possible. Cashless payments are hassle-free and time-saving, not to mention, that they also reduce the use of paper. Cashless payment can be made by a card or online payment options or UPI such as Google Pay, Paytm, and PhonePe. In this article, you will learn about RuPay vs Visa, the two prominent cashless payment modes, and understand which one to choose. Read on!
What is a RuPay Card?
India has witnessed a phenomenal rise in cashless payments in the last few decades. Today, people have options like debit cards, credit cards, mobile wallets, recharge vouchers, UPI, NFC payments, etc. When the Government of India thought it necessary to have an indigenous payment solution, it launched Rupay.
One major advantage of the RuPay card is that when people use it for transactions within India, the record of its transaction history will not go out of the country. In addition, banks have to pay minimal charges quarterly or monthly to those companies who wish to enter the network.
What is a Visa Card?
A visa card, similar to RuPay in nature, is a cashless mode of payment and uses the Visa network to process its payments. Visa initially started with credit cards and gradually expanded its limit to debit cards, prepaid cards and gift cards. Visa cards are easily identifiable by the logo on the card and are issued by not Visa itself but the partner financial institutions.
The card comes with a 16 digit number which is unique to every customer, a microchip and a magnetic strip.
Also Read: 8 Best Credit Card with Airport Lounge Access For Frequent Travellers
RuPay vs Visa Card: Which One to Choose?
If you own more than one payment card, the choice to use which and when depends on the type of payment you make. Following are some of the differences between RuPay and Visa, which will help you make your choice more wisely.
| Parameters | Rupay | VISA |
| Launched in | 2014 | 1958 |
| Card type | Debit | Credit/ Debit/ Prepaid/ Gift |
| Fee structure | RuPay carries lower transaction charges compared to Visa in India | VISA cards carry higher transaction charges than RuPay |
| Processing fee | Low | High |
| Acceptance | RuPay card is accepted only in India and cannot be used for international transactions | VISA credit and debit cards can be used all over the world |
| Transaction speed | Fast | Comparably slow |
| Safety & Security | RuPay cards are more safe and secure | Visa cards are comparatively less secure |
| Withdrawal limitation | Anywhere in India | Within and outside of India |
| Insurance | Provided | Provided |
Considering the differences, both cards are essentially useful modes of payment. But Indians might benefit from using RuPay a little bit more than Visa.
Also Read: What Is The Difference Between Credit Card And Debit Card?
Transaction Limits of the RuPay Card
Just like any other card, RuPay cards have transaction and ATM withdrawal limits. The following table provides the details for RuPay card limits for different banks:
| Bank | Limits (ATM Transactions) |
| Bank of India | Rs. 25,000 each |
| Central Bank of India | Rs. 40,000 and Rs. 1,00,000 |
| Vijaya Bank | Rs. 30,000 and Rs. 25,000 |
| Bank of Baroda | Rs. 25,000 and Rs. 50,000 |
| Oriental Bank of Commerce | Rs. 25,000 each |
| Punjab National Bank | Rs. 25,000 and Rs. 60,000 |
| UCO Bank | Rs. 25,000 |
| Dena Bank | Rs. 20,000 and Rs. 25,000 |
Important Points to Know About RuPay Card
Given below are some important points that you need to keep in mind if you wish to apply for a RuPay card:
- First and foremost, people should check if their respective banks have the provision of providing a RuPay card or not.
- An important thing to note is that people will receive a RuPay card if they have a Jan Dhan Yojana bank account, i.e. such bank account holders do not have to apply for it separately.
Final Word
This article provides you with an insight into an indigenous and a foreign method of payment – RuPay vs Visa. Both are equally useful while making payments anywhere in India. RuPay, being the aboriginal product of India, has some added benefits to it. It is provided by small sector and rural financial institutions as well, which is not available for the foreign payment gateways.
FAQs
Ans: Data gets transferred to the payment network for verification during an online transaction. RuPay is a domestic payment network, i.e. transactions made by RuPay card take place within India only. On the contrary, transactions made by Visa are processed and verified abroad. As a result, transactions made by RuPay cards are quicker than those payments made using Visa.
Ans: Financial institutions do not have to pay any charge for services of the RuPay card. However, banks have to pay a fee for the services of a foreign payment network.
Ans: When you open a bank account, you can choose RuPay from the available options of payment methods. Almost all banks in India offer a RuPay card but let their customers take the final call.
Ans: People with old PMJDY (Pradhan Mantri Jan Dhan Yojana) cards can avail a sum insured of Rs.1 lakh. However, people who have the new PMJDY cards can avail a sum insured amount of Rs. 2 lakh under the PMJDY scheme.
Ans: Visa payWave is an internationally-accepted contactless payment solution for Visa cardholders. All that people need to do to complete their transactions is to wave the card in front of a contactless terminal. There is no need to enter any PIN or sign anywhere to complete the transaction.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
