VISA CREDIT CARDS VS MASTERCARD – DOES IT MAKE A DIFFERENCE?

by ANISHA

If you’ve ever turned on a television or opened a magazine, you’ve probably seen advertisements for MasterCard (Priceless) and Visa (Life Takes Visa). But what do these companies actually do and what’s the difference, anyway?

MasterCard and Visa don’t issue credit cards

First, it’s important to understand that MasterCard and Visa do not issue credit cards.  Instead, they make money by processing transactions between your point of purchase and your bank. They have nothing to do with your rewards programs, interest rates, late feesor customer service issues. Simply put, they are payment networks that connect merchant payment terminals with your bank’s credit card department. Because millions of merchants accept huge amounts of credit card purchases every day, banks prefer to use one of these third party networks to process credit transactions.

Are Visa Credit Cards Better Than Master Cards?

The point itself is not that important - are VISA cards better than MASTER credit cards for both of them are just payment gateways. That means when you pay through a VISA card, it is VISA which is paying money on your behalf and when you pay through MASTER card, it is MASTER which is paying on your behalf. And when you repay the credit amount to the bank on the end of each month, the repaid amount goes back to the subsequent debt payer.

Whether VISA is good or MASTER depends entirely upon the country where the card is being used. In a country like India, VISA is more acclaimed than the MASTER card which means it is more widely accepted than a MASTER Card. So, when Indian Credit card companies launch a credit card, they prefer to launch a VISA card for Indian Markets.

Visa Vs MasterCard - Which is the Best?

The two leading credit card companies in the world today are the competitors Visa and MasterCard. They both operate along very similar lines. While Visa can claim to have almost a billion cards issued, MasterCard has over twenty five thousand banks issuing its cards and it is difficult to find any difference in the number of locations worldwide that accept the cards, which is now estimated at over twenty million.

In fact, as far as most consumers are concerned, there is no real difference between the two. They are both very widely accepted in over one hundred and fifty countries and it is very rare to find a location that will accept one but not the other.

However, neither Visa nor MasterCard actually issue any credit cards themselves. They are both simply methods of payment. They rely on banks in various countries to issue credit cards that utilise these payment methods. Therefore, the interest rates, rewards, annual fees, and all other charges are issued by your bank and when you pay your bill you are paying it to the bank or institution that issued your card and not Visa or MasterCard.

How Visa and MasterCard make their money is by charging the retailer for using their payment method. So the truth of the matter is that a Visa issued by say the Bank of Scotland will have very little to do with a Visa issued by other banks and may in fact by more similar to the Bank of Scotland's MasterCard.

The Big Three - Visa Vs MasterCard Vs American American Express

How many times have you looked at a magazine or commercial offering you a Visa, MasterCard, or American Express (AMEX) credit card? At that time, did you stop to think about which one was the best choice? If so, here are some things to remember when deciding on a Visa, MasterCard, or American Express charge card.

1. What Visa, MasterCard, and American Express All Have in Common

All three major credit card companies offer unique credit cards. Some of their cards offer rewards or special discounts on purchases. Also, some of them will let you customize your charge card's appearance.

Depending on how much your credit limit is with the companies, you can use them for cash advances. You can also transfer the balance of one card to another with these companies when trying to save money and quickly pay off a balance. However, you may be charged a balance transfer fee.

2. Where Visa and MasterCard are Better Than American Express

Visa and MasterCard are more widely accepted than American Express. With them being widely accepted, they are more widely offered. Though there are banks that offer American Express cards, more banks will give you a Visa or MasterCard charge card.

3. Where American Express is Better

Though American Express credit cards (in comparison to Visa and MasterCard) seek to attract middle class citizens, they offer more business oriented benefits. AMEX, in most cases, does not have a bank as its middle man. As American Express can issue its cards directly to customers, the company can more easily address its customers' questions and problems. This lack of needing a bank's aid also enables AMEX to directly communicate its offers and service updates to its users.

AMEX is a better card for businesses as it offer great reward perks for business traveling purchases. The company has its own customer service line available 24 hours for scheduling trips. The company also offers double reward points for setting up your trip through its website as a member of the company's reward program.