Digital payments: 5 reasons why you should opt for a Rupay credit card

While there is a lot of buzz around using Rupay credit cards with UPI interface to make easy payments, one must remember the more they spend through credit cards, the more they get into a debt trap. Thus, one must use it wisely to reap its benefits. 

In contrast, if you use your Rupay credit card smartly, you will get several benefits. RuPay credit cards were introduced by the National Payments Corporation of India (NPCI). Like Visa or MasterCard, banks, in partnership with NPCI, can issue RuPay debit and credit cards.  

Adhil Shetty, CEO of BankBazaar.com, says, “In a competitive credit card market, RuPay cards have continuously evolved to offer the most sought-after features, such as personalised card designs, customised rewards programs, and partnerships with various merchants, to cater to card holders’ requirements.” 

Benefits 

• Indian banks settle the transaction fees in dollars to foreign credit card companies. With RuPay being an indigenous card, its transaction fees are lower than its foreign competitors, such as Visa and MasterCard. 
• RuPay’s servers are based in India, which helps make the card’s transactions faster than its counterparts. 
• Developed by NPCI, RuPay cards offer robust protection against fraud and threats, making them a secure payment option. 
• RuPay offers a wide range of cards tailored to meet varied customer needs. For instance, RuPay has a co-brand card specially designed for customers commuting via the Indian Railways. 
• With a widespread network of brand tie-ups, Rupay cards offer users a gamut of rewards and discounts. 
• These cards have a low annual maintenance charge. Also, their joining fees is as low as Rs 500. 
• One can link Rupay cards to many leading UPI apps, helping customers make payments easily.   
• RuPay credit cards are widely accepted at restaurants, merchants, hotels, etc.   
• "Rupay is a domestic network, and the transaction processing is usually faster than other cards. In the case of International cards, the data verification and processing happens through servers abroad, which may lead to more time to confirm transactions. RuPay promotes anti-phishing technology and uses high-end EMV chipset which assures secure and efficient payment," said Rajsri Rengan, Head of Banking and Payments, India and Philippines, FIS.
• Better data privacy. The transactions are processed domestically, thus enabling better privacy of data.

Limitations 

Currently, the Rupay credit card has limited acceptance at POS abroad. However, the Reserve Bank is taking measures to increase the scope of acceptance of this credit card outside India. The launch of RuPay Prepaid Forex cards is a step in this direction. 

Shetty said, “RuPay cards usually offer a lower credit limit than its competitors like Visa or MasterCard. This can be challenging for customers looking to make big-ticket purchases with their Rupay cards.” 

The credit limit of RuPay cards also varies for different banks, making it difficult for customers to find the best card with the highest credit limit. 

Why you should opt for a Rupay credit card

RuPay cards are as versatile as Visa or MasterCard and have huge acceptance domestically. “Developed indigenously by NCPI, the card network has been promoted extensively by the Union Government as an alternative to foreign networks. Consequently, they have some of the lowest MDR and some excellent rewards and benefits to offer customers. Rupay credit cards are also the only credit cards that one can link to UPI to facilitate UPI transactions. This makes Rupay a good card network alternative for domestic use,” added Shetty.