Since the onset of the COVID-19 pandemic, digital payments have become widely adopted in India, with a large percentage of the population using digital payments, including Unified Payments Interface (UPI), digital wallets, debit cards, credit cards and more. In recent years, a new type of credit card known as the RuPay credit card has gained popularity among credit card users.
What is a RuPay credit card?
A RuPay credit card is a type of credit card that is issued by Indian banks and other financial institutions, which operate under the RuPay network developed by NPCI. Initially launched in 2012, the RuPay payments network allowed for debit card transactions. In 2019, NPCI expanded the RuPay network to enable credit card transactions, specifically through RuPay credit cards. RuPay credit cards now serve as an effective alternative to international payment networks such as MasterCard and Visa.
RuPay credit cards work similarly to how any other credit card works, allowing users to make purchases through their cards or withdraw cash on credit. The major difference between the two lies in the payment processing. With RuPay credit cards, the payments get processed through the home grown RuPay network, resulting in lower processing fees for banks and, in some cases, better rewards for users as compared to other credit cards.
One of the most appealing features of the RuPay credit cards is the fact that they can be used to make UPI payments to merchants. As UPI payments are widely used by a sizeable portion of the population, and most shops, merchants, and online stores accept UPI payments, it makes RuPay cards a preferred payment option for a large number of users.
Also, RuPay credit cards have been designed to cater to the needs of a variety of consumers, as users can get basic RuPay cards with small credit limits to high-end premium RuPay credit cards that offer exclusive benefits.
RuPay credit cards can be used at millions of point-of-sale terminals, ATMs, and e-commerce websites across the country. Many RuPay cards can also be used internationally, at locations that accept the RuPay payments network.
How does a RuPay credit card work?
When a RuPay credit card user makes a purchase, the RuPay network acts as an intermediary between the merchant’s bank and the card-issuing bank. Here is a step-by-step breakdown of the process:
RuPay is a payments network launched by the National Payments Corporation of India (NPCI), and RuPay credit cards utilise the RuPay payments network to carry out transactions. In this article, we will understand what RuPay credit cards are, as well as their key benefits and features.
- The RuPay credit card holder presents their credit card at the RuPay card at the merchant’s terminal
- The merchant’s payment terminal sends the transaction details to the merchant’s bank
- Once the transaction details are confirmed on the merchant’s bank, the details are forwarded to the RuPay network
- The RuPay network then seeks authorisation from the cardholder’s bank for payment
- If the RuPay credit card holder has a sufficient credit limit, the bank’s systems approve the payment
- The approval is communicated through the RuPay network to the merchant’s portal, confirming the successful payment
The entire process happens in just a few seconds, and the amount is added to the merchant’s account upon successful payment.
Key features of the RuPay credit card
Here are some features of the RuPay credit cards you should know:
- The RuPay network has been designed to handle a high volume of transactions efficiently, ensuring a high rate of secure and successful RuPay credit card payments. RuPay credit cards can be widely used at almost every offline or online merchant in the country. Also, RuPay cards are also accepted internationally by certain merchants.
- RuPay credit cards also support tap-to-pay functionality for smaller transactions, offering greater convenience.
- RuPay credit cards feature robust security measures, such as incorporating the EMV chip technology and tokenisation for online transactions, to protect against fraud.
- Many RuPay credit cards offer attractive rewards, including cashback, reward points, discounts, etc., making them a popular choice among card users.
- One of the key appealing features of RuPay cards is the fact that they can be used to make UPI payments, which are accepted by almost every merchant, whether offline or online.
- Lastly, RuPay credit cards can be easily managed through their respective mobile apps. Users can carry out bill payments, update settings, track spends, etc., through the dedicated mobile app.
Benefits of the RuPay Credit Card
Some of the major RuPay credit card benefits include:
- Lower processing fees: Since RuPay credit cards use the home grown RuPay payments network, it results in lower processing fees to merchants and better benefits for cardholders, such as higher cashback, card-specific discounts and offers, etc.
- Wide acceptance: RuPay cards are widely accepted at all major merchants and e-commerce platforms in the country and the UPI payment option they offer makes them a preferred choice.
- Range of card benefits: You can choose from a wide selection of RuPay credit cards offering a wide range of benefits. Choose a card with benefits that suit your needs. As RuPay Credit Cards continue gaining popularity, their offers and benefits will also expand.
For many users, RuPay credit cards are an effective way to promote and support the Indian economy by using the RuPay payments network.
If you want to apply for a RuPay card, the IndusInd Bank Platinum RuPay Credit Card is worth your attention. With this card, you can earn two reward points for every ₹100 spent on UPI transactions and one reward point for every ₹100 spent on non-UPI transactions.
Some of its other benefits include:
- Non-expiring reward points on spends
- Wide range of exclusive offers and discounts linked to the card
- Flexible repayment options with Equated Monthly Instalments (EMIs) and no-cost EMIs
- Enhanced security for protection against fraud and misuse of the card
The best part is that you can apply for the IndusInd Bank Platinum RuPay Credit Card through a 100% digital process and start enjoying the benefits right away!
Key takeaways
RuPay credit cards are a major step in India’s evolution towards financial self-reliance and digitisation of finance. They serve as an excellent domestic alternative compared to international payment network-based cards such as Visa and MasterCard.
Also, the cashback, discounts, UPI payments, and other benefits make RuPay an attractive choice for credit card users. If you are looking to get a RuPay credit card, make sure you explore all available options and read the terms and conditions before signing up for any card. More importantly, make sure you use your credit card wisely and make the payments on time to build and maintain a healthy credit score.
