The credit card portability will be effective from October 1, 2023. Now the ball is in the customer court they have now the freedom to choose the card network, and each network will strive to deliver superior services and perks to retain and attract cardholders. This competition, in turn, leads to enhanced customer benefits, lower accounts, and enhanced overall customer experience.
By CROX Times Desk: RBI (Reserve Bank of India) in its one of recent circulars has made a proposal to allow customers to change their credit card. One of the main elements of this proposal is the ability that it is providing customers to switch or port their credit card networks. This would be effective from 1st October 2023.
This is not only limited to credit cards but also to debit cards and prepared cards. Portability would allow the customer to enjoy the flexibility that card networks often limit.
Within India, major card networks include VISA, Master Card, American Express, and Diners club International which is administered by the National Payments Corporation of India.
Credit Network Probability
The Credit Network is going to be introduced in India to the proposal of RBI. Especially, it suggests card issuers avoid restrictive agreements with card networks that limit their access to the services. This could well see card issuers broadening their horizons reaching out across a more diverse range of card networks.
Impact of card network probability
As of now, networks have collaborated with banks and non-banks to distribute, credit and prepaid cards. The card issuer is the main authority that decides the affiliate partner whether it would be RUPAY, Master Card, RUPAY, or any other. This arrangement limits their choice in the matter as they have to accept the card network which is chosen by the bank, irrespective of their choices.
Advantages of Credit Card Portability to the Customers
The new Change would be very helpful for the customers. This would allow them to transfer their cards from one network to another. As card issuers now widen their network, now customers have the freedom to select not only their card but also their preferred network. This choice can be enjoyed at the time of issuance or even after that.
What do you guys think of this?