Your Money: Benefit from card network switch

financialexpress.com:

The Indian card landscape is set for a big change. Starting October 1, 2023, credit and debit card holders will be able to port their card network, a landmark decision that was announced by the Reserve Bank of India (RBI) recently via a draft circular. From a customers’ standpoint, this development is significant as it gives customers the freedom to choose a card network they prefer.

Visa, MasterCard, and RuPay are among the leading players in the payment card networks. A card issued by any of these networks could, earlier, not be switched to another network. Thus, this announcement may be especially welcome by Indian card holders who often travel overseas and want to port their cards’ network to align with their requirements.

Foster innovation

The current arrangement between card networks and issuers, that leaves customers with limited choice regarding card payment, is what prompted the RBI’s decision to allow card network portability. With this facility, the central bank aims to expand and enhance the card payment options available to consumers. This transformative step can help foster competition and innovation within the Indian card payment ecosystem.

The flexibility to migrate to a different payment network while preserving their existing card accounts, balances, and credit history is among the most significant benefits card network portability offers. But that isn’t all.

Here are some other benefits which customers can expect with the new rule.

Freedom to choose: Customers will be free to select the card network that suits their best.

More competition: The increased competition between card networks could lead to lower fees for consumers. They may even be offered more cost-effective options for making payments.

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