Visa vs. Mastercard: What’s the Difference?
Two of the four major credit card networks that make it possible to pay with plastic are Visa and Mastercard. Both Visa and Mastercard are excellent choices for a debit or credit card, so don’t let that narrow your alternatives too much.
When deciding on Visa vs. Mastercard. If you’re set on using one network over another, you should learn more about the advantages of each.
These two provide similar security and are widely recognized. Credit card benefits, security features, and rewards are determined more by your card issuer than the network. Therefore, a Visa or Mastercard is a great choice, if the terms and perks established by the card issuer are advantageous.
You should try to get a credit card that has a low-interest rate, no annual fee, and a lot of incentives and perks.
Choosing between Visa vs. Mastercard won’t make a huge difference, as they both provide identical perks. However, there are specific differences to be mindful of if you want to see the whole picture, since some bonuses may only be available with one or the other.
This article compares and contrasts the two most widely used credit card networks, Visa and Mastercard.
Where Do Visa and Mastercard Differ?
Both Visa and Mastercard are examples of card networks (sometimes called card associations) that facilitate financial transactions. Exactly what is the distinction between Visa and Mastercard?
It’s not the same company, and it wasn’t started in the same period. For a while, Visa was known as the BankAmericard credit card program. When it first appeared as a BankAmericard rival in 1966, Mastercard was known as Master Charge: The Interbank Card.
Various credit card tiers on the two networks offer varying perks. Compared to Mastercard’s four tiers (Standard & Gold Mastercard, Titanium & Platinum Mastercard, World & Elite Mastercard), Visa only offers three (Traditional, Signature, and Infinite).
Minor differences in the banks and lenders with whom Visa and Mastercard work are the primary differentiators between the two credit card networks.
Finally, you can’t use a Visa card on a Mastercard network and visa-versa. So, if a shop only recognizes Mastercard, you can’t utilize your Visa to buy things there. Neither Visa nor Mastercard is necessarily superior to the other; terms of payment, rate of interest, and rewards can vary widely amongst banking institutions.
Visa vs. Mastercard: Benefits Comparison
Visa and Mastercard offer nearly identical standard benefits on their most basic cards. But Mastercard’s World and World Elite cards come with outstanding additional luxury offers, making them appealing to heavy spenders.
Below is a summary of the most useful perks of each card network.
Visa
While both Visa and Mastercard fall into the same broad categories, Visa gives many more unique perks. Also like MasterCard, Visa has a tiered system with Traditional, Signature, and Infinite cards.
- Visa Traditional
- Travel Incentives: Assistance in case of breakdown, new cards in case of loss, money in case of emergency, and lodging discounts at partnered properties
- Automobile rental insurance: Coverage in case of an accident with a rental car
- Additional Benefits: The elimination of all financial risks associated with fraudulent purchases and special offers from participating retailers.
- Visa Signature
- Travel Incentives: Besides the benefits of the Visa Traditional, cardholders also get access to travel and emergency aid services, reimbursement for missing luggage, and compensation for trip delays, cancellations, or interruptions.
- Automobile rental insurance: Insurance for car rentals
- Additional Benefits: Included benefits of the Visa Traditional, plus expanded coverage for product defects, price protection, and returns.
- Visa Infinite
- Travel Incentives: All the benefits of Visa Signature, plus the use of airport lounges, a statement credit for Global Entry, and accessibility to the Visa Infinite premium hotel collection as well as concierge services.
- Automobile rental insurance: Insurance for car rentals
- Additional Benefits: The whole range of Visa Signature benefits, plus a plethora of additional perks and experiences
Mastercard
Each of the four tiers of Mastercard credit cards offers all of the perks and features of the tier under it. Here they are, in order of increasing exclusivity:
- Standard and Gold Mastercard
- Travel Incentives: Mastercard Global Services
- Automobile rental insurance: Included with select cards
- Additional Benefits: No protection from liability
- Titanium and Platinum Mastercard
- Travel Incentives: Additional perks and discounts beyond those available to Standard and Gold Mastercard holders.
- Automobile rental insurance: Included with select cards
- Additional Benefits: Accessibility to Mastercard rewards and experiences, in addition to everything included in the Standard and Gold tiers
- World Mastercard
- Travel Incentives: In addition to the benefits provided to Titanium and Platinum cardholders, World Mastercard cardholders now receive complimentary airport concierge service, hotel stay, and the lowest rate assurance.
- Automobile rental insurance: Included with select cards
- Additional Benefits: In addition to the benefits of the Mastercard Titanium and Platinum cardholders, they also receive exclusive savings from select partners and mobile device insurance.
- World Elite Mastercard
- Travel Incentives: The same perks as Mastercard’s World tier, plus exclusive access to butler services across the world through their World Elite tier.
- Automobile rental insurance: Included with select cards
- Additional Benefits: Besides the benefits of the Mastercard World Tier, cardholders also receive special offers from companies like Lyft, Boxed, and Fandango.
Key Similarities Between Visa and Mastercard
In 2021, the total purchase volume on Visa and Mastercard in the United States was $2.78 trillion. Both are card networks, as we discussed earlier. Networks like these aid in the smooth functioning of business dealings between stores and card issuers including banks and credit unions.
When you buy something using a credit or debit card, your credit card network facilitates the transaction. It’s easy to see the similarities between Visa and Mastercard. These include:
Visa
- Visa works with a number of various card issuers rather than issuing its own cards.
- All around the world, and especially in the United States, people accept it without question. Visa cards can typically be used abroad if the cardholder notifies the card’s issuing bank of their travel plans in advance.
- Visa’s zero liability fraud protection shields you from financial responsibility in the event that your credit card number or card is stolen and used for a fraudulent transaction.
- Visa also provides additional benefits for its cardholders in the forms of travel and purchase protection as well as fraud protection. The benefits and safeguards described above apply to certain individuals.
- Shares of Visa can be purchased by the general public. Visa’s market valuation was $497.5 billion in May of 2021.
Mastercard
- Mastercard also works with a wide array of other companies that issue cards rather than doing so themselves.
- Cardholders also enjoy widespread acceptance in the USA and elsewhere. Just like Visa, I t is possible to utilize your Mastercard abroad on holiday, provided you notify your issuer beforehand.
- If your Mastercard number is stolen or your card is used without your permission, you won’t also be responsible for any fraudulent charges made with your stolen money.
- Mastercard also provides additional benefits in travel, purchasing security, and fraud prevention. The benefits and safeguards described above apply to certain individuals.
- Investors can buy shares of Mastercard. As of May 2021, Mastercard was valued at $359.8 billion.
Visa vs. Mastercard: Which Is Better?
Both Visa and Mastercard are strong options if you’re attempting to determine which one to get a credit card from. These credit card networks are generally accepted across the US and the rest of the world, and both offer some valuable perks. Each credit card company’s cards can be used at most stores.
In the long run, choosing a credit card issuer and card is more important than joining a certain credit card network. This is due to the fact that the perks supplied by both Mastercard and Visa are comparable. Visa and Mastercard advantages are wonderful to have, but they aren’t as significant as other factors, such as a credit card’s rewards program or interest rate.
In conclusion, both Visa and Mastercard are widely accepted around the world, so choosing between them comes down to personal preference. Overall, Visa cardholders enjoy more perks than Mastercard holders.
Do Visa and Mastercard Differences Matter?
In comparison to their differences, Visa and Mastercard have much more similarities. One key distinction between Mastercard and Visa is the availability of supplementary advantages and incentives. However, the rewards and conditions associated with your particular card will depend much more on the issuing bank than on the card brand itself.
When comparing Visa and Mastercard, it’s important to note that they use different security measures and that Mastercard specifically provides price protection.
If the price of an item you bought with your Mastercard drops within 60 days of your purchase, Mastercard will often reimburse you the difference. It’s also worth looking into whether or not your Visa card offers any sort of price protection.
Because of how similar Visa and Mastercard are, choosing one over the other shouldn’t be overthought. The best credit card is the one that fits your needs and preferences. This may be due to the attractiveness of the rates or perhaps the advantages provided.
When used in a foreign country, the exchange rate is slightly different. Both of these rates are extremely close to the so-called market rate that currency traders use, however, Mastercard has a little edge.
Final Thoughts
Debating between Visa vs Mastercard since these are two of the most widely used credit card networks, alongside American Express and Discover. Both Visa and Mastercard rely on a network of banking institutions to provide credit cards on their behalf.
Although there are certain similarities amongst rewards credit cards issued through the same network, the issuer, and not the network, has considerable say over the majority of a credit card’s most salient characteristics.
Since cards issued by either the Mastercard or Visa credit card networks will provide you with identical supplementary benefits, you shouldn’t make your credit card decision based just on the network from which it hails.
