Breaking Barriers: Credit And Debit Card Portability Made Possible
Starting from 1 October, a significant change is coming to the Indian card payment landscape as customers will be able to exercise card network portability. This means that credit card, debit card, and prepaid card users will have the freedom to switch between different card networks such as Visa, MasterCard, and RuPay. The Reserve Bank of India (RBI) has issued a new circular that empowers cardholders to select their preferred card network, challenging the current practice where network options are predetermined by agreements between issuers and networks.
Card network portability allows consumers to transfer their card accounts from one network to another, similar to how mobile phone users can switch service providers while keeping the same phone number. With this new policy, cardholders will have the flexibility to migrate to a different payment network while retaining their existing card accounts, balances, and credit history.
Currently, when individuals apply for a debit or credit card, they have no say in choosing the network provider as it is decided by the card issuer. Commonly seen network providers in India include Visa, MasterCard, Diners Club, and RuPay. However, the RBI's move will give customers the ability to decide which network they prefer to use for their card transactions.
The decision by the RBI was prompted by the recognition that the existing arrangement between card networks and issuers does not offer sufficient choice for customers. By introducing card network portability, the RBI aims to provide consumers with more options and enhance convenience in their card payment experience. This move is expected to bring greater competition and innovation to the Indian card payment ecosystem, benefiting customers across the country.
