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banking digital payments fintech Uncategorized

Everything you ever wanted to know about Rupay card

Rupay continues its winning run in the economy

Have you ever made an online payment? Have you ever felt the pinch of high transaction charges? If so, you are not alone. For example, international payment gateways like Visa and MasterCard charge high transaction fees. Further, in the case of Visa and MasterCard, banks pay a certain charge on joining the foreign payment gateway network. On the other hand, Rupay Card brings about a simplified payment transaction system in India.

 Launched in the year 2012 by the National Payments Corporation of India Ltd(NPCI), Rupay has revolutionized the payment ecosystem in the country with low transaction costs, nil joining fees, etc.

Rupay Card Basics
Everything you wanted to know about Rupay

In this blog, you will get answers to all your questions on the Rupay Card.

1. What is Rupay Card?

Rupay Card is an Indian variant of the card payment scheme as compared to international players like Visa and Mastercard. Introduced by the National Payments Corporation of India (NPCI) in the year 2012, Rupay is used for primarily domestic payments.

2. Features of Rupay

  • Inbuilt insurance coverage
  • Direct link with government schemes like Pradhan Mantri Jan Dhan Yojana
  • Regular cashback and merchant service benefits like fuel discounts
  • Free access to airport lounges

3. How to apply for a Rupay Card?

To avail a Rupay card, one needs to submit one’s id proof cum address proof along with two passport size photographs. All the public, private, regional cum cooperative banks issue Rupay cards in India. A form fill up at one’s branch along with the KYC requirements is the prerequisite for a Rupay card.

4. What are the transaction costs in Rupay?

As compared to international counterparts, Rupay comes with low transaction charges. For example, for a bank transaction of Rs. 2000, if Rupay charges Rs. 2.50, international payment systems charge Rs. 3.50.

5. Difference between Rupay Cards and international cards?

  • Transaction cost: As compared to international cards, Rupay comes with low operational costs.
  • Joining fees: There is a quarterly fee to be paid for joining the international card network as compared to nil in the case of  Rupay.
  • Security: Rupay is comparatively safer due to the limitation of its operation to India
  • Bank Network: Unlike Rupay, the international card network does not include small banks like rural and cooperative banks within its network.
  • International acceptance: Rupay is only acceptable within India as compared to Visa and Mastercard which is accepted internationally.

6. What are the Security features of Rupay?

While using  Rupay for a transaction, authentication happens with the entry of an OTP sent to the registered mobile number. Further, there is 256-bit encryption rendering Rupay difficult to hack.

7. Benefits of Rupay

  • Accidental insurance coverage
  • Low cost, easily accessible by people
  • Direct link with government schemes to avail added benefits
  • Faster bank transactions
  • Increases the popularity of digital payments in the Indian economy.

8. What are the variants of Rupay Cards?

On a higher level, Rupay can be classified as Credit, Debit and Pre-paid cards.

Based on the transaction limits, Rupay Credit card can be further classified as:

(a)Rupay Classic Credit Card: With an accidental insurance coverage up to Rs. 1 lakh

(b)Rupay Platinum Credit Card: With an accidental insurance coverage up to Rs. 2 lakh

(c)Rupay Select Credit Card: With an accidental insurance coverage up to Rs. 5 lakh

On the whole, Rupay continues its winning run in the Indian economy. Interestingly, post-2016 demonetization, the demand for digital payments and Rupay is increasing on a commensurate basis.

 

 

If you have liked the article, feel free to drop in your valuable feedback in the comments below. 

For more information refer:

https://www.bankbazaar.com/saving-schemes/all-that-you-need-to-know-about-rupay-debit-card.html

https://www.npci.org.in › product-overview › rupay-product-overview

https://www.rupay.co.in

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

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banking digital payments Financial intermediary payment gateway Uncategorized

Banking in India explained

Service your needs through the banking institutions

Confused with the choice of a banking institution for your business? Right kind of funding is important for the health of any business. In other words, funding at the appropriate time gives more freedom for creativity and innovation. A well-funded business has more leverage for expansion and growth.

In India, we have a number of banks catering to different customers. Also, we have a mix of public and private sector banks servicing a variety of needs.

Banking institutions
Banking institutions in India to service your needs

In the course of this blog, I will walk you through the different types of banking institutions in India.

BROAD CLASSIFICATION OF BANKS

1. SCHEDULED BANKS

Scheduled banks are included in the second schedule of RBI Act,1934. By being a scheduled bank, one acquires membership of the clearinghouse. Also, the banks can get loans from RBI at the bank rate. Any bank with a capital of more than 5 lakh qualifies as a scheduled bank. Further, scheduled banks keep a cash reserve ratio with the RBI.

2. NON-SCHEDULED BANKS

Non-scheduled banks are not part of the second schedule of RBI Act,1934. The capital requirement of a non-scheduled bank is less than 5 lakhs. Non-scheduled banks are not members of the clearinghouse. Also, they do not have access to loans from RBI at the bank rate. Unlike scheduled banks, non-scheduled banks do not keep a cash reserve ratio with the RBI.

Non-scheduled banks are also called as local area banks in India. Coastal Local Area Bank Ltd, Capital Local Area Bank Ltd, Krishna Bhima Samruddhi Local Area Bank Ltd, Subhadra Local Area Bank Ltd are some of the examples.

TYPES OF SCHEDULED BANKS

1. COMMERCIAL BANKS

A commercial bank provides banking services with a profit motive. They ensure adequate credit creation and stability in a nation’s economy.

  • PUBLIC SECTOR BANKS: Public sector banks have the government as the major shareholder(more than 50%). Over 75% of the banking sector business comes under the purview of the Public sector banks. There are 12 major PSBs in India such as SBI, Bank of India, Bank of Baroda, Central Bank of India, etc. On the whole, there are 27 PSBs in India.
  • PRIVATE SECTOR BANKS: In private sector banks, non-government entities form the major shareholders. There are 22 private sector banks in India. Private sector banks provide a slightly less interest rate as compared to PSBs. Similarly, Private sector banks constitute over 15% market share in the country. Some major private sector banks in India are ICICI, HDFC, Axis, IDFC, etc.
  • FOREIGN BANKS: Foreign banks cater to the jurisdictional laws of both the parent and destination country. 1% of branch network in India constitutes foreign banks. Also, foreign banks have a Priority Sector Lending of 40% and a minimum capital requirement of 5 billion.
  • REGIONAL RURAL BANKS: Regional Rural Banks caters to the funding needs of the rural communities in India. It draws its operating and functional powers from the Regional Rural Banks Act, 1976. In addition, RRBs also cater to payments in government schemes like MGNNEGA and government pension programs. RRB has a joint shareholding of Central government(50%), State government(15%) and Sponsor Bank(35%).
  • PAYMENT BANKS: It is a new category of banks with limited functionality of a bank. For example, payments banks do not issue loans. The deposit limit is 1 lakh per customer maximum. Further, payments banks have a minimum capital of 100 crores.
  • SMALL FINANCE BANKS: Small finance banks service the needs of the small and marginal entities like small farmers, traders, businesses, etc. Small finance bank has 100 crores paid-up capital and a priority sector lending of 75%. Further, they do not lend to big corporates or groups.

2. COOPERATIVE BANKS

Cooperative banks function on the basis of cooperative principles. The ownership of cooperative banks lies with the customers. In India, cooperative bank categorization takes place on the basis of Short term and Long term lending options. Short term lending takes the form of Primary Agricultural Cooperative Societies (PACCS) at the village level, District Central Cooperative Banks at the District level and State Cooperative Bank at the State level. The long term lending is a two-tier structure with Primary Agriculture and Rural Development Banks (PARDBs) at the village level and State Agriculture and Rural Development Banks.

  • URBAN COOPERATIVE BANKS: Urban cooperative banks finances the needs of urban areas, registered under the cooperative societies act. They largely cater to small businesses in urban areas like small traders, low and middle-income groups, etc. UCB regulation happens via both the State Government and the Central bank. State government laws cater to the UCB’s administration while the central bank laws apply in case of regulation.
  • RURAL COOPERATIVE BANKS: Rural cooperative banks finances the needs of rural areas. It caters to agriculture, livestock, rural employment sector, etc.

For more blogs, visit http://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

Categories
banking digital payments Financial intermediary fintech payment gateway startup Uncategorized

Frauds in online payments explained

Simple tips to avoid frauds

A study conducted by the Center for Strategy and International Studies (CSIS) & McAfee show that online fraud is equivalent to 0.8% of the world’s GDP. Most importantly, payment frauds form a major part of this figure.

Online payment frauds connote the illegal transaction by fraudulently acquiring the customer’s credentials. For example, it takes the form of credit/debit card fraud, data theft, friendly fraud, phishing, etc. Incidentally, the advance of technology has advanced the fraud involved as well. Also, fraudsters have devised complex techniques to come out with sophisticated frauds which are very difficult to detect.

Online payment frauds
Some time tested techniques to handle online frauds
Learn the simple tips for combating online payment frauds

In this blog, I will take you through some simple yet time-tested methods to tackle online payment frauds. As they say, prevention is always better than cure.

1. Data Theft frauds

This most common mode of online payment fraud involves stealing digital information of customers like banking account details, credit/debit card information, PIN, etc. For example, in 2017, 1 in 15 people had their identities stolen. Subsequently, the hacking of the credential holder’s account takes place with the stolen data. Further, data theft is also a result of employee negligence in handling an organization’s data. 

Data theft prevention techniques:

  • Regular malware check on the computer system.
  • Use of debit/credit card with pin-chip technology.
  • Frequent change of password every 1-2 months.
  • Regular installation of updated software on systems.
  • Ensuring a secure and protected wifi connection.
  • Do not respond to unauthorized and spam emails.

2. Phishing frauds

In Phishing, hackers camouflage as financial institutions and contact the target victims. In doing so, the various adopted modes are email, telephone, text, etc. For example, the potential target luring happens with fake offers, false email links, attachments and emails from unknown senders. Further, studies show that phishing accounts for 90% of all the data breaches.

Phishing frauds prevention techniques:

  • Use of email filters.
  • Change in browser settings. Do not autosave passwords for payment sites.
  • Timely fraud report to banks to ensure speedy action cum monitoring.
  • Keep a track of URL of links in an email. It is a potent outlet to fraudulent sites that steal user data.

3. Friendly fraud

Friendly fraud is one of the toughest fraud to detect. Herein, a customer makes an online payment and then disputes the purchase by contacting the credit card issuer. Going ahead, the fraudster is refunded while the fraud continues on different payment platforms. Studies show that friendly fraud increases at a rate of 41% every two years. It is on the rise due to the increasing presence of e-commerce companies. Moreover, it is very challenging to detect friendly fraud due to the favoring of customers by credit card companies.

Nevertheless, an estimate of friendly fraud is made by observing a larger than usual average transaction. Also, a high frequency of order coupled with a high amount of stolen orders suggests the presence of friendly fraud.

Friendly fraud prevention techniques:

  • Call recording to verify the veracity of the order.
  • Saving the product delivery information by confirming the signature verification.
  • Blacklisting of suspicious, fraudulent customers.
  • Building cordial relations with customers to maintain a positive brand image.
  • Interconnectivity with online payment peers to obtain updated information about fraudulent customers.

4. Triangulation fraud

This fraud primarily involves three parties involved in a transaction. Firstly, a customer places an order with an e-commerce site. Secondly, the e-commerce site is a fraudulent seller which takes the order and reorders on another website using stolen payment credentials. Lastly, the legitimate e-commerce website unsuspectingly processes the fraudulent order. For example, triangulation fraud is common in the trade of electronics appliances, pet supplies, tools, etc.

Triangulation fraud prevention techniques:

  • Keep a track of repeated product selling behavior of the retailer.
  • Connect with triangulation fraud victims to ascertain the fraud strategy
  • Be in touch with auctions/marketplaces that are known to host fraudulent sellers.

5. Refund fraud

Refund fraud occurs in a situation wherein a customer engages in the frequent return of ineligible items without any concrete reasons. For example, stolen or damaged goods are frequently returned. It often results in e-commerce sites hiking prices to recover the loss due to fraudulent returns.

Refund fraud prevention techniques:

  • Flagging customers resorting to frequent returns.
  • Stricter return policies like discouraging returns without a valid receipt.
  • Serial numbers on goods for verification.

On the whole, payment frauds are an inevitable part of transactions in a digital era. However, the tips and tricks mentioned above can be used to reduce it considerably, if not eliminate it. In addition, be well prepared for any unforeseen scenarios during online payments. Always, keep in touch with the concerned banking and regulatory authorities to safeguard your business and buyings.

For more blog posts, visit http://blog.sabpaisa.in