ATM CARDS
 Earlier people used to go to the bank to withdraw money, bear long-range lines and also face many
problems. Keeping all this in mind, the bank implemented a credit or debit card to withdraw money from
ATM machines and to get the ATM Card the applicant needs to apply it.
 After applying whether for debit or credit card, the bank offers 3 types of ATM card i.e. RuPay Card, Visa
Card or MasterCard.
 Now people have started withdrawing money from ATM machines without going to the bank. So, we can
say that these cards are a type of Payment Gateway Card.
PLASTIC MONEY
 When we use any type of ATM card for the transaction at the place of hard cash, this card is known as
plastic money and the transaction resulting from it is called cashless payment.
 It can be done via any ATM, Visa Card, MasterCard or RuPay Card.
RUPAY CARD
 Rupay Card is an Indian domestic card conceived and launched by NPCI in 2012. It was introduced in the
Indian payment system to reduce the monopoly of foreign gateways like Visa and MasterCard because these
are foreign companies or American companies and their commission is high i.e. the cost of transaction is
high.
 Therefore, we can say that RuPay Card is an Indian payment gateway. It also works like Visa or Master Card
and its commission is low. RuPay facilitates electronic payment at all Indian banks and financial institutions.
WHAT IS VISA AND MASTERCARD?
 Visa Card and MasterCard are a foreign payment gateway that provides payment facility to most of the
banks in the world. There is no special difference in MasterCard and Visa Card. Both of these are ATM
cards and their work is similar. They are international cards; payment can easily be done everywhere.
 However, neither Visa nor MasterCard actually provides any credit card to anyone. These are both
payment methods. They rely on banks of different countries to issue credit cards using the payment
methods. Therefore, interest rates, rewards, annual fees and all other charges are issued by the bank
and so, when you pay your bill, you are paying it to the bank or institution issuing your card, Visa or
MasterCard.
DIFFERENCE BETWEEN RUPAY CARD, VISA CARD OR MASTERCARD?
1. RuPay Card is an Indian Domestic Debit Card whereas Visa or MasterCard is
an International System debit card.
2. The main difference between RuPay, MasterCard or Visa Debit Card is the
operating costs. Since every transaction through RuPay will take place within
India, the banks will have to pay less service charges to the payment gateway as
compared to Visa, MasterCard.
3. Visa or MasterCard is an American company and when we use its card, then
for data processing and verification, the server goes to the company's server,
which reduces processing. Whereas RuPay card is used for data processing and
verification in India only so, its processing is fast.
4. Banks are required to pay a quarterly fee for joining a foreign payment network such
as Visa Debit Card or MasterCard but do not have to do so in RuPay Card. Any bank can
join the RuPay network at no charge.
5. There are some limitations of using the RuPay card because it provides only debit
card for online transactions, whereas Visa or MasterCard provides both the debit and
credit card.
6. As, compared to international card, RuPay cards are more secure because its
operations are limited within India only. Therefore, data is shared between national
gateways only. But using Visa Debit Card or MasterCard, the customer's data are
processed internationally and hence the risk of data theft is high.
7. In case of international cards, banks have to pay entry fee to be a part of their network which is not the
case with RuPay card i.e. no joining fee for the banks.
8. RuPay card is offered by the public sector, select private banks, rural and cooperative banks whereas
others don’t include such small banks in their network.
CONCLUSION:
Originally it can be said that
the rupay card is an indian
domestic debit card
whereas visa or mastercard
are international system of
debit card. The transaction
cost of rupay card is low but
the transaction cost of visa
or mastercard is more due
to the processing in foreign
countries.
SAVINGS ACCOUNT AND CURRENT ACCOUNTS
 Savings account and current accounts are designed for different purposes and have different features.
Savings accounts cater to individuals who want to save whereas current accounts are made for regular
transactions of firms and companies.
SAVINGS ACCOUNTS
•
A savings account is designed with the primary purpose to help you save.
•
This type of account allows the holder to deposit money as is convenient, on which the holder can earn
interest.
•
A Savings account may be opened by an individual or jointly and requires the holder to usually maintain a
pre-specified amount as minimum balance.
•
Interest rates earned on Savings Accounts range anywhere between 4% to 6%. These accounts do
usually carry the facility of issuing cheques.
CURRENT ACCOUNTS
•
Current Accounts derive their name from the purpose they are suited for, regular transactions.
•
This type of account is more suited for users like firms, companies, public enterprises, businessmen, etc.
•
Currents accounts do not earn any interest due to the fluidity they offer.
•
Current accounts usually do not carry a limit on the number of transactions which can be made.
SAVINGS ACCOUNT V/S CURRENT ACCOUNT
 A Savings account differs from a Current account in many ways and aspects. Both these accounts
address different financial needs of the user, helping in better money management.
 Here are some of the major points based on which one can distinguish between a Savings and a Current
Account.
 Purpose
 Savings Account: A Savings Account has been designed to encourage and promote savings
 Current Account: Is designed to facilitate regular or frequent transactions.
 Ideal For
 Savings account : ideal choice for any individual who earns a steady or regular income like salaried
employees. This type of account is also ideal for those who have any short term financial goals to meet
like a future vacation, financing a wedding, buying a car etc.
 current account : Is more suited individuals who are required to carry out frequent money transfers like
businessmen, firms, companies, organizations, public enterprises, etc.
 Monthly Transactions
 Savings Account: Banks offering the facility of a Savings account do usually put a limit on the maximum
number of transactions which a holder can carry out in a month. The permissible limit without attracting any
charge is usually anywhere between 3 to 5 transactions per month (financial and non-financial).
 Current accounts: Do not have any limit on the maximum number of transactions which one can carry out. This
is primarily because Current accounts serve the purpose of carrying out frequent transactions.
 Interest
 Savings Account: Will usually earn you an interest between 4% to 6% on a pre-specified basis. Since these
accounts do not allow unlimited transactions, it is easier to accumulate more funds over a period of time.
 Current Account: In the case of current accounts, banks usually do not provide any interest. This is due to the
fluid nature of the account which allows frequent transactions.
 Minimum Balance
 Minimum balance is the minimum amount of money which must always be in your account in order to
prevent it from de-activating or lapsing.
 For Savings accounts, the minimum balance required is usually low. However, for Current accounts, one
may need to maintain a relatively higher amount as minimum balance.