What is the difference between MasterCard VS Visa card?

Whai is visa？

Visa is a global payment technology company that facilitates electronic funds transfers throughout the world. The Visa card, issued by financial institutions, serves as a widely accepted method for making purchases, withdrawing cash, and conducting other financial transactions. Here's a comprehensive overview of Visa cards:

History:

Visa was originally established in 1958 as BankAmericard by Bank of America. It was the first mass-marketed credit card program.

In 1976, BankAmericard officially became Visa, marking the creation of a global brand.

Over the years, Visa has expanded its network and services, becoming one of the largest and most recognized payment systems worldwide.

Types of Visa Cards:

Credit Cards: Allow users to borrow money up to a predetermined credit limit, and they must repay the borrowed amount along with any accrued interest.

Debit Cards: Linked to the cardholder's bank account, debiting funds directly when transactions occur. Debit cards can be used for purchases and cash withdrawals.

Prepaid Cards: Loaded with a specific amount of money in advance, prepaid cards function similarly to debit cards but are not tied to a bank account.

Business Cards: Designed for business-related expenses, providing features such as expense tracking and reporting.

Secured Cards: Geared towards individuals with limited or damaged credit histories, requiring a security deposit to establish a credit line.

Whai is Mastercard？

Mastercard is a global financial services and payment solutions company that provides a wide range of credit, debit, and prepaid card products. Below is a comprehensive overview of Mastercard, covering its history, types of cards, and functionalities:

History:

Mastercard was established in 1966 as the Interbank Card Association (ICA) by a group of California banks.

Originally, the organization's primary offering was the Master Charge card. In 1979, it officially became Mastercard to better reflect its global presence and diverse card offerings.

Over the years, Mastercard has grown into one of the world's leading payment networks, facilitating secure and efficient electronic transactions.

Types of Mastercard Cards:

Credit Cards: Mastercard offers a variety of credit cards with different features, rewards programs, and credit limits.

Debit Cards: Linked to the cardholder's bank account, debiting funds directly when transactions occur. Mastercard debit cards can be used for purchases and ATM withdrawals.

Prepaid Cards: Similar to prepaid Visa cards, Mastercard's prepaid cards are loaded with a predetermined amount of money and can be used for transactions until the balance is depleted.

Business Cards: Mastercard provides business credit and debit card solutions tailored to the needs of businesses, offering expense management tools and reporting features.

Commercial Cards: These are designed for corporate clients, offering specialized features for managing expenses and optimizing business spending.

Points of Difference Between Visa VS Mastercard

Visa and MasterCard differ in terms of the following aspects:

1.Service Fee

Both Visa and MasterCard earn revenue through the payment processing fee. However, the method of charging fees differs. 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. These charges differ for card-issuing institutions and not the cardholders. Hence, your card issuer levies a standard fee, which remains unaffected.

2.Card Levels

Both MasterCard and Visa offer different card variants to match your varied needs and preferences. Visa is available in three tiers – Traditional, Signature, and Infinite. The benefits offered on your Visa card may differ based on the card category. Contrarily, the three tiers of MasterCard are Standard, World, and World Elite. Each tier comes with varied benefits. A Standard MasterCard will have comparatively lower benefits than a high-level MasterCard like World Elite.

3. Issuing Banks:

Visa: Visa does not issue cards directly to consumers. Instead, it partners with banks and financial institutions worldwide that issue Visa-branded cards to their customers.

Mastercard: Similar to Visa, Mastercard does not issue cards itself. It collaborates with financial institutions globally, which then issue Mastercard-branded cards to consumers.

4. Global Acceptance:

Visa: Visa cards are generally accepted at a slightly higher number of merchants globally compared to Mastercard.

Mastercard: Mastercard is widely accepted worldwide, but its acceptance may vary by region and specific merchant agreements.

5. Rewards and Benefits:

Visa: The specific rewards, benefits, and perks associated with Visa cards depend on the issuing bank's offerings. Visa Signature and Visa Infinite are premium tiers with enhanced benefits for high-tier cards.

Mastercard: Similar to Visa, Mastercard offers different tiers, including World and World Elite, each providing varying levels of benefits and privileges.

6. Exchange Rates:

Visa: Exchange rates for international transactions are determined by the issuing bank, and Visa's rates may be influenced by its network agreements.

Mastercard: Like Visa, Mastercard exchange rates are set by the issuing bank, and they may vary between banks and even between different Mastercard products.

7. Technology and Security:

Visa and Mastercard: Both networks employ similar security measures, including EMV chip technology, tokenization, and encryption, to protect cardholder information during transactions.

8. Regional Differences:

Visa and Mastercard: Acceptance and popularity of Visa and Mastercard can vary by region and country. In some areas, one network may be more dominant than the other.

9. Branding and Marketing:

Visa: Known for its tagline "Everywhere you want to be," Visa emphasizes its global acceptance and convenience.

Mastercard: The "Priceless" campaign is one of Mastercard's notable marketing efforts, focusing on the idea that certain experiences are invaluable.