VISA vs MasterCard: Difference Between VISA and MasterCard That You Should Know

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.

What is a VISA Card?

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. 

What is a MasterCard?

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. 

VISA vs MasterCard: Difference between VISA and MasterCard

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:

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. 

What are the Benefits of a VISA?

The VISA card has three tiers of benefits:

• Traditional
• Signature
• Infinite

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:

1. Lost/stolen card reporting
2. Zero fraud liability 
3. Extended warranty on a few purchased items
4. Collision damage waivers for auto rentals
5. Travel or emergency assistance
6. Travel protection
7. Return and purchase protection 

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. 

What are the Benefits of MasterCard?

Similar to VISA cards, MasterCard also has three tiers of benefits. These tiers are:

• Standard
• World 
• World Elite 

The numerous benefits of MasterCard include:

1. MasterCard global service hotline
2. ID theft protection 
3. Zero fraud liability
4. MasterCard travel and lifestyle services
5. Concierge services 
6. Free memberships to select services depending on the location

Final Word

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. 

FAQs on VISA vs MasterCard

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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.