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Visa vs. MasterCard: Which one is good to provide?

When you are planning to get an international bank card among the types of Visa or MasterCard credit cards, perhaps the first question that comes to your mind is what is the difference between a Visa card and a MasterCard and which one should I choose? Which one is better depends on your needs rather than an international bank card, and there are some important and interesting points about this, which we will try to mention in the following.

Visa vs. MasterCard: Which one is good to provide?
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Comparing Visa card and Mastercard in terms of acceptance

Visa and MasterCard companies process payments between banks and acceptors (such as shopkeepers) through bank cards.
Both payment networks offer cardholders special benefits such as car insurance, fraud protection and other guarantees, but it is usually important to look at the benefits that the card issuing bank offers to its customers rather than the benefits of the visa or MasterCard  itself offers. 
Comparing Visa Card to MasterCard, both companies have many similarities to each other, and while Visa claims to have more than 2.4 billion users in more than 200 countries, MasterCard refuses to provide the same statistics and only says that it makes more than 18 billion payments a year.

Usually, acceptors (shopkeepers and…) accept both Visa and MasterCard, and this rule exists not only in the United States but also internationally, and of course in countries other than the United States, American Express and Discover, which have two payment networks, are less accepted.

But the fact that an acceptor accepts one of these two, depends on the fact that the acceptor probably has a special contract or deal with one of these networks. For example, the Costco wholesale store only accepts Visa cards (before mid-2016 it only accepted American Express). Similarly, Sam’s Club only accepted MasterCards, which of course now accept both MasterCard and Visa cards.

Type of Card

Visa Card

MasterCard

Number of transactions worldwide (in billion)

37

24

Global admission

Both are accepted by approximately 35 million acceptors



 

Accepted Places

In more than 210 countries

 

Market Share

%48.50

31.70

Types of user levels

Standard VISA


VISA Signature

Standard Mastercard

World Mastercard

World Elite Mastercard

Market Share

$ 195 Billion

$ 111 Billion

Number of Issued Cards

2.1 Billion

1.2 Billion

Value of transactions per year

$ 6.5 trillion

$ 3.6 trillion

Number of ATMs

More than 2 million

More than 1 million

 

Both of these cards are accepted by more than 20 million acceptors in more than 150 countries, and there are few places that accept one and not the other.

pros of visa and mastercard

Advantages of using Visa and MasterCard networks

As mentioned, Visa and MasterCard networks offer benefits to customers in addition to the benefits of the card issuing bank. The difference between Visa Card and MasterCard in terms of benefits provided to the customer is summarized in the table below.

Type of Card

Visa Card

MasterCard

Travel benefits

Discounts and benefits for accommodation in more than 900 accommodation centers



Provide recreational and welfare offers

Discounts and benefits for staying in luxury hotels for World and World Elite customers


Discounts for participating in events and luxury goods


Only for World Elite customers discounted travel by ship and plane


Discounts on some tours and entertainment programs

Purchase Protection

For VISA Signature holders up to 10,000 requests and $ 50,000 per cardholder

Price protection up to 60 days for World Mastercard customers and up to 120 days for World Elite

 

Visa and MasterCard both offer a wide range of features and services that banks can choose from them to offer to customers.

Advantages of using Visa and MasterCard network include:

Non-contact payments - Credit cards with payWave in Visa and PayPass in MasterCard allow their holders to make payments by bringing your card closer to a compatible device. If the transaction is less than $ 100, you do not even need to enter your password, which can speed up the purchase. You can still use this feature for purchases over $ 100, but you must enter the password to confirm the transaction. You can also have this feature in your phone to buy even without a card and only with your mobile phone.

Premium Cards - Both Visa and MasterCard offer a large number of premium and standard cards. Premium cards have more advantages than standard cards. For example, Visa Platinum, Signature and Infinite or World Mastercard credit cards are among these cards.

Special offers - Visa Entertainment and Mastercard Priceless are the names of the applications that Visa and MasterCard companies have for customers, during which you can enjoy entertainment, lunch, travel and shopping with special offers. Even with some premium cards, you can benefit from discounts in these applications.

Global Security Services - Visa and Master support team can help you if you have lost your card, stolen it or even had a question. This support is at your service 24 hours a day, anywhere in the world.

Online Shopping Protection - Both Visa and MasterCard have programs that double the security of customers in online payments. Verified by Visa and Mastercard SecureCode services are an example of this protection that you may be offered. With the activation of this service, at the time of online shopping, you must enter the SMS code to your phone to complete the transaction.

Criteria for comparing a Visa card to a MasterCard

In comparing Visa card to MasterCard, you need to consider criteria so that you can easily differentiate between the two providers, which are difficult to distinguish. Here are some criteria to consider when comparing a Visa card to a MasterCard.

Annual Fees - Most credit cards charge you an annual fee, which for regular cards can be as low as $ 25 and as high as $ 700. The card issuer determines the annual costs in relation to the available capabilities. Visa Platinum, Signature and Infinite cards as well as World Mastercards usually have the highest annual cost due to their benefits.

Interest rate - Depending on the type of card you choose, the interest rate also varies, so you should pay attention to this when choosing a particular issuer.

Rewards - Some Visa and MasterCard have a rewards program that gives you one point for every $ 1 you spend, and ultimately gives you benefits and rewards for the points you collect.

Non-interest days - If you clear your debt on time, most credit cards will offer you a non-profit period, which can be, for example, a 44-day period. Such a feature allows you to make your purchases without paying interest.

Special Benefits - Credit cards have their own special benefits, which can include supplemental insurance, special offers, and access to flights. These benefits are valuable.

Offers for Newcomers - Credit card providers usually make short-term offers to their newcomers, such as a 0% transfer interest rate or a 0% purchase interest rate, which is an advantage.

Security Services - In addition to the security services provided by Visa and MasterCard itself, card issuers also offer 24-hour fraud monitoring services, restrictions on daily transactions, or even the ability to temporarily lock the card.

visa vs mastercard

Fees and Costs in comparing Visa and MasterCard

Although there is no charge for you if you use credit cards wisely, service providers usually try to monetize you in several ways, and in this way, commissions and expenses are created for you. Some of the most important reasons you can pay for your credit card are:

  • Receive interest if you borrow money
  • Monthly or annual fees with some cards
  • Fees for violating certain rules, such as late payment or departure from card restrictions
  • Costs associated with using more features such as cash withdrawals, money transfers and…

Monthly and Annual costs

Many cards have no annual fee and some do not receive anything for the first year. Some credit cards, however, charge you a monthly or annual fee of between $ 17 and $ 213 per year.

Cost of crossing restrictions

Credit card providers set a limit for the card, which is the maximum balance you can have on your card.

For example, your credit card limit is 2,000 pound and you spent more than 1,000 last month. If you spend more than another 1,000 now, you will exceed the limit and that will include the cost.

If you cross this limit, you will have to pay about $ 17 extra.

Withdrawal costs

Using a credit card at an ATM can be costly for you because it costs money for two reasons.

Withdrawal fee - This fee is calculated as a percentage of the amount you want to withdraw.

Immediate interest - At the time of withdrawal, interest will be deducted immediately from your withdrawal amount, while normal credit card purchases are interest-free.

For example, if you withdraw 100 pound from an ATM and return it 36 days later, you will lose   $ 5.52 in interest and fees.

Overseas spending

If you use your credit card abroad, you may be deducted about 2.99% for each time you spend on your credit. This means you pay £2.99 for every £100 you buy. Also, the credit of your card will be converted into the fiat money of the country. Withdrawing cash abroad can be even more expensive because of the amount of interest withdrawn, which is usually 27.9 percent or more. You also have to pay a withdrawal fee of about 3% to withdraw from the ATM. Of course, there are also cards for use abroad that you do not need to pay for.





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