Credit Card Portability

Similar to the network portability among various service providers, such as Vodafone, Airtel, or Jio, credit card users will also be able to switch between the card network, such as RuPay, MasterCard, Visa, etc.

This facility has been announced by the Reserve Bank of India and the users can avail themselves of this service from 1 October 2023. This facility will eliminate the limitation the credit users had earlier and would offer the card users enhanced benefits, low annual cost, and improved customer service for retention of the customer.

Here are more details regarding credit card portability.

What is a Card Network? 

Card network involves financial transactions and communication between cardholders, issuers, and merchants. This financial infrastructure facilitates settlement of card transactions, authorisation, and clearing financial transactions. Some of the card network available in India that are developed by the National Payments Corporation of India (NPCI) are Diners Club International, RuPay, American Express, MasterCard, and Visa. 

What Is Card Network Portability? 

The portability of credit card network is an ability of the cardholders that allows them to choose their desired card network as facilitated by the issuer. The existing regulation as prescribed by the Reserve Bank of India (RBI), cardholders do not have enough choice between card network and issuers. From 5 July 2023, cardholders will have multiple network options as per the guidelines by the Central Bank. This initiative enhances competition and innovation among various payment networks, improves flexibility, reduces card prices, and offers incentive and rewards to maximize the banking experience. 

Why is Credit Card Portability Important? 

Here are the two main reasons as to why credit card portability is important: 

  1. Card network affiliated with is determined by the card issuers 
  2. Customers cannot select the card network themselves as the bank forms partnerships 

Why is Credit Card Portability Beneficial? 

The following are the reasons why credit card portability is beneficial: 

  1. Allows customers to transfer their cards from one network to another 
  1. Customers can select not only cards but also preferred card networks 
  2. The desired card can be selected during card issuance or any time later 

Can I Switch from One Bank to Another? 

No, you cannot switch from one bank to another, but you can switch to another card network. This is not possible because credit card issuers issues card based on prior history or premium debit card based depending on the relationship with issuing bank. In the case of porting to another card of a bank where you are a new customer, it may not be possible as the eligibility criteria and associative privileges may be different. 

What are the Positive Changes of Credit Card Portability for Consumers? 

The following are some of the positive changes of credit card portability for consumers: 

  1. Enables users to select their desired card network 
  2. This initiative facilitates easier credit management and enhanced flexibility 
  3. This also helps in resolving issues faced during international travel 
  4. This initiative will create a health competition among the card issuers, thereby providing consumers with multiple benefits 
  1. Linkage of UPI (Unified Payment Interface) and credit card is another positive change of credit card portability.

FAQs on Credit Card Portability

  • When can I port my card network?

    You can port your card network at the time of renewal, issuance of the card, or if the fresh agreement is executed after the circular date (4 August 2023). 

  • What is the timeline for card portability for the banks?

    The timeline provided to the bank is less than 90 days to implement these changes and the proposed implementation date is 1 October 2023.

  • What is the provision of prohibition of restrictive agreements by the RBI?

    As per one of the key provisions of RBI, the cardholders are restricted from utilising the other card networks’ services to ensure enhanced flexibility and access to the customers. 

  • Can card issuers issue more than one card network?

    Yes, more than one card network can be issued by the card issuers.

  • What are the restrictions as per the RBI draft circular?

    According to the draft circular of the Reserve Bank of India (RBI), card issuers are restrained from entering into the agreements that limit the restrict the ability of the issuer to form partnership with other card networks.

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