Globally four major payment systems dominate the electronic payments industry. These four companies are VISA, MasterCard, Discover and American Express. But VISA vs MasterCard has always been a topic of discussion with pros and cons on both sides. In India too, VISA and MasterCard are widely used for various kinds of online and offline purchases.
If you are a frequent credit card user, you must know the key differences between VISA and MasterCard before you decide to choose one of them. Keep reading to get all the information about the difference between VISA and MasterCard.
A VISA card is a cashless facility that one can use to make payments for goods and services. Moreover, it uses the VISA network to process the payments. It offers a wide range of cards like credit, debit, prepaid and gift cards.
Furthermore, the VISA cards come with a 16-digit account number, magnetic stripe and a microchip. You will find various financial institutions partnering with VISA so that they use their payment network and gateway. Moreover, each issuing bank has its terms and conditions one must abide by if one wants to apply for a VISA card.
MasterCard is the second largest payment network processor, just behind VISA. It generates revenue primarily from gross dollar volume fees. Gross dollar volume refers to the processing fee they charge to businesses that accept payments made through their cards. This also includes payments made from Cirrus and Maestro. Moreover, MasterCard only collaborates with financial institutions that issue MasterCard payment cards that work exclusively on the MasterCard network. It operates in more than 210 countries and territories and works with more than 150 currencies.
The major difference between VISA and MasterCard is that an individual’s card will only work on the payment network in which the particular company operates. That is, a VISA card will not work on MasterCard’s network and vice-versa.
Further, the difference between MasterCard and VISA include:
|The service fee for MasterCard is based on the percentage of global dollar volume
|Here the service fee is based on the card volume to the issuer
|MasterCard uses PayPass for contactless payments
|On the other hand, VISA uses payWave for contactless payments
|The transaction, circulation of cards and purchase volume is less compared to VISA
|Transactions, purchase volume, and card circulation is higher compared to MasterCard
Other than these, the benefits will differ based on the card issuer. This is because both VISA and MasterCard are payment networks, and the financial institutions are the ones who issue the cards to their clients. So, these banks design the benefits in a way that matches the income as well as expenditure of the client.
The VISA card has three tiers of benefits:
Credits will read “VISA Signature” or “VISA Infinite” if they are a part of those tiers. However, it might not show much for the traditional tier cards.
Some of the common benefits for all the tiers include:
As a cardholder, you can call the number given behind the card. A representative will guide you further through the benefits you will receive based on your card’s tier and the additional benefits that you will receive from the card issuer.
Similar to VISA cards, MasterCard also has three tiers of benefits. These tiers are:
The numerous benefits of MasterCard include:
A popular question among cardholders is, “VISA vs MasterCard – Which is better?”However, you must understand that both are payment gateways that partner with various banks and merchants. Moreover, the card’s features and benefits depend on the card issuer or the bank. Moreover, banks determine a card’s features based on fees, interest rates, sign-up bonuses, etc. If you are contemplating whether to choose VISA or MasterCard, keep a few things in mind like your credit and income. Otherwise, most of the features and benefits are roughly similar.
Ans: MasterCard is accepted in 210+ countries and territories compared to VISA, which is accepted in 200+ countries and territories. However, 7 million merchants accept VISA worldwide, and it also has the most amount of card circulation worldwide.
Ans: Since 2006, MasterCard has been a publicly traded company. However, before its initial public offering, a cooperative of more than 25,000 financial institutions owned MasterCard worldwide. These financial institutions were the ones that issued cards with MasterCard branding.
Ans: The joining and annual fees of some of the famous VISA cards available in India are:
SimplySave SBI Card
Joining Fee: Rs 499
Annual Fee: Rs 499
ICICI Coral Credit Card
Joining Fee: Rs 500
Annual Fee: Rs 500
Axis My Zone Credit Card
Joining Fee: Rs 500
Annual Fee: Rs 500
Ans: Joining and Annual fees of MasterCard in India are:
ICICI Bank Rubyx MasterCard Credit Card
Joining Fee: Rs 3000 + GST
Annual Fee: Rs 2000 + GST
Club Vistara SBI Credit Card
Joining Fee: Rs 2999
Annual Fee: Rs 2999
HSBC Premier Mastercard Credit Card
Joining Fee: Nil
Annual Fee: Nil
RBL Platinum Choice SuperCard
Joining Fee: Rs 499
Annual Fee: Rs 499
Ans: The documents required to apply for credit cards in India are:
Credit card application form
Identity proof: Adhaar card, Voter ID card, PAN card, Driving license, Ration Card
Income proof: Bank statement (last 3 months), salary slip (last 3 months), ITR
Address proof: Utility bill, lease agreement
Before you go…
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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