Visa vs MasterCard — What's the Difference?
They make their money by charging merchants a business fee for accepting their type of card as a method of payment. This article will summarize the differences between these two types of cards.
You can tell that a credit card is a Visa card if it starts with the number 4. Visa’s membership includes three levels: base, signature, and infinite. Visa is typically great for coverage on car rental insurance, but it excludes a few countries. The company is also very kind to its gold or elite cardholders. They will offer services to make their lives easier and save them time. For example, they will offer concierge services such as restaurant reservations, providing access to events, or even assist with purchasing gifts if you provide minimal information about the recipient and a budget. This is almost similar to an electronic personal assistant.
Visa card benefits also include return protection that is widely used with signature cards. Return protection is a service that allows you to get your money back when a merchant will not accept a return. Many items are not eligible for the service, but for items that are, this perk can save a user a lot of money. Lastly, Visa has a warranty manager service that provides its customer help to use and even extend warranties of eligible items purchased with their visa card. Visa is widely accepted in over 200 countries and territories globally.
- Better “loss of use” coverage on car rental insurance
- Widely used return protection
- Warranty manager service
- Exclude rental car insurance in some countries entirely
You can tell that you have a MasterCard credit card if it starts with the number 5. MasterCard offers three levels of membership as well: base, world, and world elite. MasterCard has amazing cost protection services, so if something is bought with a MasterCard, and the price reduces over sixty days, MasterCard credit cards will actually refund the difference. This feature allows you to always get the best deals even when they are not present when you physically purchase the item.
For its world and world elite cardholders, MasterCard offers complimentary professional travel services. This service has advisors that can help users plan a trip twenty-four hours a day, seven days a week. They claim to understand travel preferences that are unique to each user. For online shoppers, MasterCard has partnered with ShopRunner to provide free shipping from over one hundred and forty online stores. This is an incredible deal for people who enjoy purchasing items online from time to time. Like Visa, MasterCard is also widely accepted in over 200 countries and territories globally.
- Great cost protection services
- 24-hour complimentary professional travel services
- Free shipping from over 140 online stores
- Offers return protection with very few cards
MasterCard vs Visa — What's the Difference?
The differences between Visa and MasterCard are subtle but present. There are many similarities between the cards as well. Being the leading credit card companies, acceptance is definitely not a difference between the two cards. Both are accepted in millions of locations and hundreds of countries. Some banks will occasionally have an exclusive product partnership with one or the other, but this does not affect where people can use their cards.
They also both report lost or stolen cards for customers so that they do not have to do it themselves. This way if a customer accidentally loses their card, the companies will automatically cancel the card and report it to authorities. They both also have emergency card replacement and emergency cash dispersal as well in case users find themselves in a tough situation. This gives customers an easy solution to a lost card without being without cash for a while. Nonetheless, some differences do exist. These tables provide a brief summary of Visa and MasterCard’s pros and cons.
|Visa Benefits||MasterCard Benefits|
|Visa Cons||MasterCard Cons|
Which Card is Better to Pay in the USA?
When shopping domestically, you aren’t likely to notice any difference between MasterCard and Visa in terms of them being accepted. There are many types of Visa cards and MasterCard options available. Both providers offer multiple levels of cards that offer different benefits; cashback, rewards, low rates, and more. The standard Visa card has five base benefits, while MasterCard’s offers four, but the benefits change with each card. While there is no real difference in the ability to pay in the USA between Visa and MasterCard, the benefits are where you need to be attentive.
Without having to worry about either card being accepted, maximizing what you get from your card is how you can determine which is a better fit for you. While some cards offer travel stipends, some give cash back on specific purchases, and others do completely different things. If you are not planning on traveling outside the United States, both Visa and MasterCard are great options to add to your wallet.
Which Card is Better to Pay Abroad?
Visa and MasterCard are accepted in Europe. In fact, they are both the most widely accepted American credit cards when used abroad. The money you save abroad will depend on fees paid to your bank exchange rates, and fees paid to the merchant. Like many other cards, Visa and MasterCard both promise no foreign transaction fees, so users do not have to pay anything extra to their bank. If users are mostly using their card at the point of sale rather than withdrawing cash, then they are probably not paying any fees to the merchant either, especially if they are declining dynamic currency conversion. They both offer great exchange rates as well.
MasterCard will sometimes offer slightly better exchange rates than Visa, but if traveling is not something that customers do very often, it will not make the biggest of differences. For people that are big travelers, MasterCard will most likely be the better option since their exchange rates are typically better. Master card also offers their complimentary professional travel services as stated above. This is a good option for people who need assistance when planning future travels. This feature does not make your trip cheaper but can make your experience better.
Visa vs Mastercard — Which is the Best?
When deciding between MasterCard or Visa, make sure to look at the benefits of each card individually to determine what will be most beneficial to you. The thing to consider is where you spend most of your money to complement your spending habits. After this is thought through, a decision can be made to assist your financial life the most.