Visa vs MasterCard: Key Differences Between Visa and Mastercard

When it comes to cards, be it a debit card or a credit card, two names immediately come to mind: Visa and Mastercard. These global payment networks facilitate billions of transactions every day, offering convenience and security to cardholders worldwide. 

However, despite their similar functions, Visa and Mastercard have distinct features and differences that set them apart. Exploring these disparities can help consumers make informed choices when selecting the right card for their needs. Here in this article, we will discuss Mastercard vs Visa card, their key differences and a clear understanding of how each network works.

Overview of Mastercard vs Visa Card

Visa

Visa is currently the second-largest payment card service company in the world. It has around 50% share of the total card payments in the globe after the China-based UnionPay. Visa is primarily into offering debit and credit solutions and apart from that it also offers an entire suite of financial services such as retail partnership, ATM, business analytics, theft protection and more.

In the year 2023, the company has issued a total of 4.3 billion cards worldwide. Visa’s networks have processed a sum of 212.6 billion USD worth of transactions by the end of FY 2023. 

Mastercard

Mastercard was created by an association of banks in 1966 with an objective to compete with Visa. Mastercard was in the cooperative ownership of more than 25,000 financial institutions, which also issued Mastercard-branded cards. Apart from prepaid, debit and credit cards, it also offers a wide range of financial solutions across the globe. 

As of 31st December 2023, Mastercard has issued 3.3 billion debit and credit cards, including co-branded cards. 

Mastercard’s primary business is not issuing cards. Instead, it earns the majority of its revenue by charging banks a certain fee to issue cards and process payments. It is also known as "swipe fee" or "interchange fee". Furthermore, it also charges a fee at various stages such as when your bank approves the transaction or when the amount moves into the receiver’s account.

Visa vs Mastercard: Differences

If you are looking forward to availing a credit or debit card and wondering which one to choose, here are some of the key differences which set them apart:

Benefits of Mastercard vs Visa card

Visa and Mastercard being amongst the leading payment networks in the world offer almost similar types of benefits. This includes travel benefits, purchase protection and insurance, emergency services, etc.

Here are the details of the unique benefits offered by each payment processing company:

Benefits of Using Visa

Travel benefits:

• Privileges when renting cars
• Emergency Assistance and Travel Protection
• Discounts and benefits at over 900 luxury hotels
• Exclusive events at Sonoma County wineries
• Services for cardholder inquiries
• Access to Priority Pass lounges

Purchase Protection and Insurance:

• Get compensation for delays on your trip
• Zero liability policy
• Reimbursement for lost luggage
• Reimbursement for trip interruption or cancellation
• Protecting your belongings from theft at hotels
• Travel accident insurance
• Mobile phone protection
• Price protection
• Return protection
• Extended warranty protection

Emergency services:

• Roadside assistance
• Easy reporting lost or stolen cards
• Access to emergency and travel assistance services
• Quickly replacement of emergency cards

Benefits of Using Mastercard:

Travel benefits:

• Exclusive offers
• Access to golf clubs for lessons and games
• Selection of luxury hotels and resorts totalling 3,000 properties.
• Lower hotel rates
• Complimentary nights, car rentals, RV rentals, and airfare

Purchase Protection and Insurance:

• Zero liability protection
• Mastercard's ID theft protection
• Mobile phone protection

Emergency services:

• Access to emergency and travel assistance services
• Easy reporting lost or stolen cards
• Quick replacement of emergency cards

Mastercard vs Visa: Which One Should You Choose

One of the most common questions among debit card and credit card customers has always been “MasterCard vs Visa card: which is better?”. In India, financial institutions usually do not give you the option to choose between a Visa card or a Mastercard while applying in offline mode. However, you can get this option while applying via internet banking/mobile banking portals. 

Once you have understood the key differences and the perks and benefits both companies are offering, you will be in a position to draw a conclusion based on your requirements and convenience. Regardless of which option you choose, you will enjoy a seamless experience as both Mastercard and Visa are international market leaders.