Currently, plastic money is in fashion and convenient for transactions these days. Its usage is growing at a fast pace. So, RBI aspires to provide more card network options to people holding credit, debit or prepaid cards. Therefore, from 1st October 2023 onwards, they can switch, as per their choice.
What is Card Network?
It is a service-providing company. It facilitates the centralised communication system. The bank and non-bank (card issuer) use this for payment card transactions. Examples of card networks include Visa, RuPay, Master Card, American Express and Diners Club. Except, RuPay card other all are foreign companies
How does Card network portability work?
Now, RBI has given options for portability to credit, debit or prepaid card users. This means that people can switch their card network from one company like Visa to another company like Master Card or Ru Pay. It can be vice versa as per their choice. Likewise, we port mobile networks between Vodafone, Jio and Airtel.
Earlier, Banks and non-banks (card issuers) make prior agreements with card network companies. So, the customers have to forcefully accept it. Banks (card issuers) will provide different card network options to them from October onwards, when people issue new a card, renew or update their existing cards.
Why to switch Card Network?
There can be many reasons to switch it. For instance, the RuPay card provides the facility for UPI Payment. While other card networks don’t do so. Diners Club card hands out some free services at the airport lounge, but it doesn’t work at every POS (point of sale). Similarly, the RuPay card is not accepted in every country because of this, a person can choose Visa or Master card.
When you can switch Card Network?
As soon as you renew or make a new contract for your card, you will have the option to switch the card network. The new contract will be formed when your card validity expires or your card has to be upgraded
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