What is the Difference Between Visa and Mastercard?

When we think about the credit card networks we find everywhere these days, the two that come to mind are Visa and Mastercard. But what are Visa and Mastercard, exactly? These are two of the biggest payment processors in the world, used by various card issuers. For many people, the only difference when it comes to Mastercard vs. Visa is the logo. This is not surprising, considering how many features they share.

Here, you will discover the similarities and even more than one difference between Visa and Mastercard so you can decide which one is better suited for your money.

Visa vs. Mastercard: Similarities

Do you wonder which one of the payment networks is better? To start this review of Mastercard vs. Visa card, let’s begin with talking about the similarities between them, as there are quite a few.

Both are accepted internationally

When we take a look at these types of credit cards, it becomes apparent that they are accepted worldwide almost to the same degree. For example, Visa cards are currently accepted for checkout in 200 territories and countries and territories while Master credit card allows you to make payments in 210 areas. Thanks to this advantage, traveling with either one of these cards is a great idea.

If we compare these cards to Capital One Card or Discover, they are obviously more universal.

Digital payment opportunities

Contactless and mobile payments are all the rage now. When you opt for MasterCard, you will get access to “Tap and Go Payments,” while Visa provides users with Contactless Indicator cards.

It is also possible to add both Mastercard and Visa cards to digital wallets, such as Samsung Pay, Google Pay, and Apple Pay.

Zero liability for fraud

Both Visa and Mastercard can boast a wide range of security features. The first one to mention is zero liability for fraud. It means that if someone steals your card or uses your card details to make purchases, your financial liability is $0.

Several card tiers with their benefits

Mastercard and Visa are also similar in that they provide several card tiers depending on what benefits you want to get. Visa currently has three: Standard, Signature, and Infinite. Mastercard also has three categories: Standard, World, and World Elite.

You should keep in mind that an issuer bank will determine the exact features in each category, but they are usually very similar.

Numerous benefits

The exact benefits you will get with the Mastercard or Visa card will depend on the banks or card issuers, as they can choose which features to add. Whether you select Mastercard or Visa, you will come across at least some benefits, such as travel-related perks, emergency and accident insurance, cellphone insurance, and more.

If you are after specific advantages, you need to check out which features have been chosen by different financial institutions from those that can be provided by Visa or Mastercard.

Visa vs. Mastercard: Differences

What is the difference between Visa and Mastercard? Answering that question leads to discovering an answer to another one: which is better—Visa or Mastercard? Here are the main differences you should be aware of.

Different payment networks

The main difference between Visa vs. Mastercard is that they are not interchangeable and operate on separate payment networks. For example, you may see at the store that only Mastercard is accepted, which means that you cannot use your Visa card there for purchases. There are plenty of stores nowadays where only one card type is accepted due to established partnerships between a retailer and a payment processor.

Method of charging fees

Mastercard and Visa coincide in that both rely on payment processing fees, which generate the largest portion of their revenues. However, there is a significant difference in their approaches. Visa has a simple system of charging fees from a card issuer per single transaction. Mastercard, on the other hand, makes charges based on the percentage of the total volume of transactions during a specific time frame. The differences in these approaches don’t affect cardholders.

Benefits and rewards

As it was mentioned in the similarities, Visa and Mastercard both have three reward tiers. At the same time, while the structure is similar, it is obvious that Visa has more perks for credit cards of lower tiers. Mastercard took a different approach and reserved most of its benefits for World Elite cards.

For example, if we compare Visa Signature and Mastercard World, which are both second-tier cards, the former provides more benefits. Both have travel benefits and emergency insurance, but Visa Signature also provides extended warranties, roadside dispatch, and more.

Security technologies

Both networks have security technologies, but they use different ones. Visa relies on Verified, which is designed to ensure that you perform online transactions. For example, if you are making a large purchase, or you log in using a new device, you need to enter a password or other additional information. Mastercard uses the SecureCode technology, so you get a private code to verify your transaction

Final Thought

If you wonder which card is best, Visa or Mastercard, this is a difficult question to answer, considering the similarities between these payment processors. Where is Mastercard accepted? And what about Visa? What are their peculiarities? If we take a look at the exact perks of Visa and Mastercard, there is a slight difference in the tiers. It seems that Visa Signature is more beneficial than Mastercard World.

Still, it is best to examine major credit cards or debit cards and their exact benefits instead of worrying about what multinational payment card services corporation to choose.