We explain that what is the difference between Visa and Mastercard with table. Credit cards have been around for 70 years. Introduced by the Diner’s Club in 1950, credit cards have their benefits for users from the beginning.
Previously, credit cards were made of cardboard or celluloid. Plastics began to be used in 1959.
There was a closed loop system before the mentioned period, however, it is understood that using the money without having the funds and returning it with interest is a good business.
Over time, the methodology for issuing and using credit cards has varied. Banks began offering credit cards to customers and payment networks support them.
The two most important payment networks in the world are Visa Card and Mastercard. They both have billions of customers using their payment networks; one or the other.
This is due to the global reach of payment networks. Visa and Mastercard are accepted in more than 200 countries at various points of sale and businesses.
As such, electronic payments are dominated by these two giants. Both operate in the same functional environment and also have their differences.
The main difference between Visa and Mastercard is with foreign currency exchange rates when buying goods abroad. The exchange rates that Visa offers when buying goods abroad are not as good as those of Mastercard, since the latter offers better exchange rates.
Comparison table between Visa and Mastercard
Comparison parameter Visa Mastercard
|Conversion measures||When buying in foreign currency, the exchange rates are not as good as MasterCard.||Mastercard offers better exchange rates when buying in foreign currency.|
|Auto – Rental Collision Waiver||Visa does not offer any limits on the exemption for loss of use due to repairs or damage while renting a vehicle.||Mastercard limits the exemption to $ 500|
|Return protection||Visa does not offer this service to all Visa cards. Only Infinite cards are eligible for return protection.||Mastercard offers up to $ 250 within 60 days of purchase.|
|Purchase protection||Visa Signature and Infinite cards alone offer this protection for a stolen or damaged purchase.||Mastercard offers to cover up to 90 days from the date of purchase.|
|Price protection||Not all Visa cards offer this protection.||Standard Mastercard offers this service for up to 60 days, while Mastercard World and World Elite offer up to 120 days from the date of purchase.|
What is Visa?
Visa is a multinational financial services corporation that facilitates the electronic transfer of funds through its payment network. Electronic funds transfer happens all over the world with the help of your issued credit cards, debit cards, and also prepaid cards.
Visa does not have the authority to issue cards to set credit limits or set fees. Visa provides financial institutions with Visa-branded products that are used to offer credit and debit programs to customers.
Visa was established in 1958 connecting with Bank of America. It is always the bank that sets the standards for rates and credit limits and not the card issuer.
Visa is a versatile payment network that operates on 6 continents. The customer base is in the billions, in fact, in the year 2014, the US recorded 100 billion transactions in one year.
Visa has secured data centers in 4 locations; Virginia, Colorado, England, and Singapore. These data centers are highly protected and not even natural disasters can destroy them. These data centers can operate independently without the help of other centers.
Data centers are well equipped and can handle up to 30 thousand transactions in one second and 100 billion calculations in one second as well. Visa is the second-largest payment network in the world.
What is Mastercard?
Mastercard is a multinational financial services corporation based in the United States. It got its current name Mastercard in 1979, however, services began in 1966.
The core business is to be a means of facilitating electronic payment transfers between the bank and bank merchants. The medium is a card and was therefore called the master card credit and debit cards.
Mastercard was initially called Interbank and later changed to Master Charge in 1969. Following Bank of America issuing bank cards through Visa, Mastercard started the same with the help of many regional bank card syndicates.
Violation of federal law a few years ago had given Mastercard a bad name for the fees the ATM charges on the cards. This also applies to Visa Inc. as well.
Both Visa and Mastercard paid an amount of 3 billion dollars for the case brought against them. Since then, Mastercard had been diligent in its financial opinions. There are many benefits for customers using Mastercard.
When it comes to foreign currency exchange, MasterCard offers good exchange rates and it is often considered good to carry a credit or debit card issued by MasterCard when traveling abroad.
Main differences between Visa and Mastercard
- Visa and Mastercard are giant payment networks that operate all over the world. The main difference between Visa and Mastercard is the currency exchange rates. Visa offers very little exchange rates when buying foreign currency products, while Mastercard offers better exchange rates for the same.
- When renting a vehicle and due to a collision, you cannot continue driving. The payment would have been made in advance using the credit card. The vehicle can no longer be used and the merchant is expected to return the funds. In such cases, Visa will offer the exemption to the amount paid and has no limit, while Mastercard grants a limit of $ 500 as an exemption in such cases.
- Return protection is not offered on all Visa cards, but all MasterCards offer return protection of up to $ 250 for 60 days from the date of purchase.
- Visa Signature and Visa Infinite cards offer purchase protection, while the entire MasterCard offering covers up to 90 days from the date of purchase.
- Price protection is an amazing feature that not all Visa cards offer, while all Mastercards have this protection and the rates will be compared over a 60-day period for standard cards, while World and Elite World compare and pay up to 120 days.
Conclusion: Visa Vs Mastercard
Both cards are widely used around the world. The payment network is huge. It is impossible to find a way out without accepting Visa or Mastercard. Other cards are not as prominent as the Amex and Discover cards. The benefits of both are equally good for the customer.
The reason for using a credit card determines the benefits. It is a personalized version of understanding what awaits the customer. Both companies earn significant revenue through the processing fees and services offered.
Visa is considered to have larger transactions and purchase volume than MasterCard. But the global commercial acceptance is the same for both services.