What are Visa and MasterCard
Both Visa and MasterCard are the two leading credit companies in the world that handle transactions when you spend on your debit, credit or prepaid card issued by banks or financial providers. They do not issue cards, they just facilitate the payments.
They simply check with the card provider if the transaction should be accepted or declined, confirm with the retailer that the payment can be made, then they process the payment.
Is there a difference
Both are accepted worldwide at most retailers and would be very rate to find somewhere that accepted credit card but did not accept either MasterCard or Visa.
This is not the same for American Express which is another payment network. American Express has higher charges for the retailers on transaction fees to process your payment. Some retailers will therefore not accept them because it costs them more.
They both provide additional security for online payments in the form of MasterCard SecureCode and Verified by Visa. They also work out foreign exchange when you use your card abroad.
Do they offer benefits
There both companies diverge is in terms of their promotion and benefits. The benefits features will depend entirely on the specific card and issuer.
MasterCard has its World Elite Mastercard which comes with premium travel benefits like access to airport lounges, concierge service and other special promotions. Also, discounts on sporting and travel tickets.
Visa has their Visa Premium card that offers travel, dining and leisure offers and access to the Visa Luxury Hotel Collection.
Often, both payment providers will be a sponsor for specific events such as the UEFA Champions League, Rugby World Cup and many others. As part of the sponsorship deal, the payment provider may offer exclusive competitions for tickets or experiences.
Which card should you choose
When comparing credit cards, whether or not a card is a MasterCard or Visa shouldn’t be a factor. Instead, your focus should be on what the provider is offering in terms of interest-free introductory offers, APRs, fees and rewards. It may be worthwhile comparing the different benefits on offer from each payment provider.
