5 Credit Card Networks in India: RuPay, Visa, Mastercard, Amex, Diners Club

Ever noticed Visa or Mastercard written on your debit and credit cards? These are credit card networks that process your payments, meaning they connect the money from your bank to the store or wherever you’re paying. There are five approved networks in India right now – RuPay, Visa, Mastercard, Diners Club, and American Express – but which one is the best?

Let’s understand what these credit card networks are and which one to choose when applying for a credit card in India.

Basics of Credit Card Networks

A credit card network acts as a communication system for card transactions. It connects your bank (the card issuer) and the merchant’s bank (the one receiving your payment) to process and authorize payments.

Let’s understand this with an example:

Imagine you have a Visa credit card from HDFC Bank. When you use this card to pay at a coffee shop, HDFC Bank shares your card details with the Visa network. Visa then checks with your bank to ensure you have enough credit limit and that the transaction is valid. Once your bank approves it, Visa passes this information on to the coffee shop’s bank, which then adds the payment to the shop’s account. Visa receives a small fee for handling the transaction. This entire process happens within seconds.

In short, a card network enables payments between cardholders and merchants, verifies if the transaction is valid and the cardholder has sufficient funds, and offers fraud protection and dispute resolution services. For this, they charge merchants an interchange fee, usually ranging from 1% to 3%.

Card Issuer vs. Card Network

A card issuer is essentially the bank or financial institution that has issued you the credit card. Their job is to give you credit, handle billing and payments, and manage customer service. A card network, on the other hand, offers the infrastructure for processing transactions. They verify cards, authorize payments, and set rules and regulations for card usage and security.

Issuers and networks work together to provide a seamless credit card experience. When you use your credit card, the network processes the transaction, verifies with the issuer that the card is valid and has sufficient funds, and then transfers the funds to the merchant. The issuer then bills you for the purchase, and you repay the issuer.

In India, and generally in most countries, you can choose both: which bank to get a credit card from and which credit card network to use.

Credit Card Networks in India

As mentioned, there are five card networks to choose from in India: Visa, Mastercard, RuPay, Diners Club, and American Express.

1. Visa

Visa is the world’s largest credit card network, accepted in over 200 countries and territories. This means that if you have a Visa card, you’re likely able to make payments almost anywhere, including at millions of merchants and ATMs.

It offers a variety of cards, ranging from basic to premium, making it ideal for frequent travellers or shoppers. Visa has its own contactless payment technology, Visa payWave, for fast and secure transactions. Visa cards also prioritize security with features like stolen or lost card reporting, card replacement, zero liability, and more.

2. Mastercard

Mastercard is another popular global card network, accepted in over 210 countries and territories. It’s also widely popular in India. While Visa and Mastercard are often considered interchangeable, Mastercard is known for offering premium rewards and benefits on its World and World Elite level cards.

Just for your information, the RBI banned Mastercard from issuing new credit cards in India in July 2021 due to its failure to comply with local data storage rules announced by the central bank. The ban was lifted a year later.

3. RuPay

RuPay is India’s own domestic payment network, developed by the National Payments Corporation of India (NPCI), which also created UPI. It is primarily accepted in India, with global acceptance growing through partnerships with international card networks like Discover and JCB.

RuPay credit cards generally have lower processing fees for merchants, making them a comparatively affordable payment method for Indian customers. Additionally, discounts and offers are often tailored specifically to Indian users.

RuPay also supports UPI, allowing users to make UPI payments at shops and merchants directly through their credit card accounts linked with payment apps like PhonePe, Google Pay, Paytm, and others. Here are some of the best RuPay credit cards for UPI payments.

4. Diners Club International

Diners Club, founded in 1950, is one of the oldest charge card networks and is currently owned by Discover Financial Services. Diners Club cards are widely accepted globally, often wherever Mastercard is accepted due to a network partnership.

Initially designed for entertainment and travel expenses, Diners Club primarily focuses on affluent individuals and frequent travellers who value premium rewards, personalized service, and exclusive benefits such as airport lounge access, concierge services, and curated travel perks.

In India, Diners Club cards are exclusively issued by HDFC Bank. They offer three variants: Diners Club Privilege, Diners Club Black, and Diners ClubMiles.

5. American Express

American Express (Amex), founded in 1850, targets a global audience with a focus on premium and travel rewards cards. It is accepted in over 160 countries and territories worldwide, with near-universal acceptance in the US, though acceptance may vary in other regions.

In India, American Express directly issues its own credit cards. They also partner with various banks for co-branded cards, but the primary issuer remains American Express itself.

It’s worth noting that in 2021, the Reserve Bank of India temporarily restricted American Express from onboarding new customers due to non-compliance with data localization rules. However, this ban was lifted in 2022, and American Express is now fully operational in India again.

What is the Best Card Network in India

In India, the two most popular card networks are Visa and Mastercard. Most credit cards you’d apply for are likely to be issued by these giants. Both offer various benefits like reward points, cashback, and exclusive discounts. Honestly, it all boils down to the specific card you choose.

However, if you want to make UPI payments using your credit card, you’ll need a RuPay credit card. You can either apply for a new card or ask your bank to issue a RuPay variant of your existing card. Also, check if you have any pre-approved offers, as many banks offer a RuPay card as a complimentary benefit if you already have a card with them.

Diners Club is exclusively issued by HDFC Bank, leaving you with no other options. The same applies to American Express, although some banks like ICICI Bank and HDFC Bank also issue Amex cards. While not all places in India accept Amex due to their higher merchant fees, they’re often the preferred choice for premium lifestyle and travel credit cards.

If I were you, I would aim to have one Visa card, one Mastercard, and one RuPay credit card. The RuPay card would enable QR code payments, while the Visa and Mastercard would ensure acceptance almost everywhere globally, including all of India.