Visa vs. Mastercard: What’s the Difference? | Fi Money (2024)

FAQs

Is it better to pay with Visa or Mastercard? ›

Benefits comparison: Visa vs. Mastercard. On entry level cards, there is very little difference between Visa and Mastercard, as both provide a similar suite of basic features. However, Mastercard includes impressive special luxury offers on its World and World Elite level cards, which can be attractive for big spenders ...

They operate on different payment networks

The biggest (and most obvious) difference between Visa and Mastercard is that they operate on totally separate payment networks. While a bank might issue both Visa and Mastercard branded cards, they are processed using different systems.

Visa and Mastercard are both publicly traded. Visa (trading symbol V) commands a $497.5 billion market capitalization, while Mastercard (trading symbol MA) follows closely behind at $359.8 billion (market caps as of May 18, 2021).

Average credit card interchange fees

Discover credit card processing fees are the lowest overall, but Mastercard and Visa aren't far behind, and they fall into similar fee ranges. For many merchants, processing fees will be almost the same whether the customer pays with a Visa, Mastercard, or Discover credit card.

One significant difference between Visa and Mastercard is that Visa dominates the global credit market. Mastercard processes nearly less than half of what Visa does in annual payments and Visa's revenue is consistently higher. In 2022, close to 40% of all global card transactions were made using a Visa-branded card.

Which is more secure? Both Visa and Mastercard offer zero fraud liability for all cards, which means that any user who is victim to fraud, theft, or breach of data will not be liable for the lost money. Both networks are generally considered to be secure, but use different methods for securing your data.

If your bank switched a card from Visa to Mastercard, it was likely because they felt the features and benefits of Mastercard were better than those of Visa. For example, the issuer might take into consideration processing fees or network-level benefits like travel insurance or purchase protection.

A low-interest credit card is a good fit if you need to finance expenses over time while minimizing interest charges. These cards tend to come in two major forms, offering either a lower ongoing rate than the average credit card APR or a 0 percent introductory APR on new purchases.

In general, no. The Visa brand promise of “everywhere you want to be” means that you should be able to use your card anywhere Visa is accepted. An issuer is not permitted to block all transactions from a specific location or merchant type.

Mastercard is not accepted at certain stores and merchants that only take cash, such as vendors at a local fair. Mastercard is also not accepted at retail chains that have an exclusive agreement with another card network. For example, Costco accepts Mastercard only for online purchases.

What banks use Mastercard? ›

Instead, Mastercard partners with financial institutions to issue cards on its network. Some of the biggest financial institutions that issue Mastercard credit cards include U.S. Bank, Synchrony Bank, Citi, Chase, Capital One, Barclays, Bank of America and Avant, though there are many others.

Owning more than two or three credit cards can become unmanageable for many people. However, your credit needs and financial situation are unique, so there's no hard and fast rule about how many credit cards are too many. The important thing is to make sure that you use your credit cards responsibly.

Since Costco has an established partnership with Visa, customers can't pay for in-store purchases with cards from the other major networks — American Express, Discover, and Mastercard. That said, consumers can use Discover and Mastercard (but not Amex) when shopping on Costco.com and the Costco app.

The ownership structure of Visa (V) stock is a mix of institutional, retail and individual investors. Approximately 46.53% of the company's stock is owned by Institutional Investors, 0.15% is owned by Insiders and 53.32% is owned by Public Companies and Individual Investors.

Mastercard is not accepted at certain stores and merchants that only take cash, such as vendors at a local fair. Mastercard is also not accepted at retail chains that have an exclusive agreement with another card network. For example, Costco accepts Mastercard only for online purchases.

Visa charges the card issuer on a per-transaction basis or based on the card volume. Contrarily, MasterCard charges card-issuing institutions based on the percentage of global dollar volume. Global dollar volume refers to the total volume of all transactions made using MasterCard-enabled cards within a specific period.

A Visa credit card is an excellent option for people who travel regularly or purchase abroad because they are widely accepted. Additionally, Visa credit cards offer travel perks like concierge services, travel insurance, and exclusive access to airport bars.