The investor can now set and modify their own transaction limits by using their Visa debit card for investing in mutual funds. Also, all the SIPs linked to the debit card can be visible to investors alongside other recurring payments, by logging into their bank’s subscription management portals, a press release said.
In addition to an evolved dispute resolution mechanism offered by banks on Visa cards, the benefits program offered by banks for their card consumers makes it a rewarding alternative to current payment methods.
“Starting with Federal Bank and ICICI Bank debit cards, this service will soon be available to more Visa cardholders in India. In a country with over 69 million mutual fund SIP accounts, we believe debit card payments with its inherent benefits offer a strong alternative to current payment methods, helping build investor trust and ensuring they can invest with ease and confidence,” said Ramakrishnan Gopalan, Head of Products and Solutions, India and South Asia, Visa.
Arif Khan, Chief Innovation Office, Razorpay, said, “With Debit Cards, customers can conveniently initiate investments, significantly improving success rates for TPV-driven payment flows by 60-80%. We’re proud to launch this innovation with Federal Bank and ICICI Bank, democratizing investment accessibility and setting new benchmarks, aligning with Visa’s trusted industry leadership.”
An investor can select a mutual fund on the website or application of the fund house, and then choose debit cards as the payment option and proceed to checkout along the customer journey. The process of mutual fund payments with a debit card remains the same, but with additional checks and balances. This initiative is live with leading fund houses and distributors and investors can invest in lumpsum or start SIPs using their Visa debit cards.If the investment is being set up for recurring payments like SIPs, an investor simply needs to enable recurring payments. In line with regulatory guidelines, the card details are validated by the aggregator and issuer against the account that is funding the investment, and that it indeed belongs to the investor. Cardholders will receive a pre-debit notification before the next payment is auto-debited from their accounts.
