Mastercard vs Visa: 4 things you need to know
1. Visa and Mastercard don’t issue their very own bank cards
It could appear contradictory, but neither Visa nor Mastercard directly distribute bank cards. Both corporations are processing networks that work with card issuers like banks, credit unions and other financial institutions to get their cards out to the general public. And it is the actual card issuer, not the processing network, that sets many of the terms related to rates of interest, rewards and annual fees.
2. Visa and Mastercard are processing networks
As processing networks, each Visa and Mastercard do much of the work behind the scenes that makes it possible to process your payments. In other words, these corporations provide the technology and networks that make your transactions possible. When you make a payment in your bank card balance, you are usually not paying Visa or Mastercard; you might be paying the cardboard issuer.
3. Both are widely accepted
Visa and Mastercard are widely accepted by Canadian retailers, with a number of exceptions. Costco, for instance, doesn’t accept Visa in its stores (but you should use Visa on Costco.ca).
4. Whether a bank card is a Visa or Mastercard shouldn’t influence your selection
In the overwhelming majority of cases, the processor – Visa or Mastercard – is irrelevant to your selection of bank card. It’s best to check each bank card option individually, being attentive to details about rate of interest, rewards or money back, welcome bonus, and extra perks. From there, you need to select the bank card that most closely fits your particular spending habits and offers advantages you may use. This selection process might be prolonged to financial institutions as well. The best option for you is likely to be a bank, credit union, or possibly even a retailer, and you need to be open to all of those card options, even should you haven’t got every other accounts with that lender.
Mastercard vs. Visa: What are the differences?
The differences between Visa and Mastercard are negligible and doubtless won’t affect your decision about which card to make use of. However, there are a number of small differences that readers should concentrate on.
1. Acceptance
The overwhelming majority of Canadian retailers accept each Visa and Mastercard. However, Costco only accepts Mastercard for in-store bank card payments. If you shop at Costco usually, chances are you’ll wish to carry a Mastercard.
2. Advantages
While most advantages and perks are determined by the cardboard issuer, there are some cases where the processor has influence. For example, in terms of airport lounge access, Visa partners with the Priority Pass program, while Mastercard offers membership to the corporate’s own Mastercard Airport Experiences. Other areas to look at include concierge services and the terms related to the liability insurance and fraud protection a card offers.
3. Card levels
You can have seen some Visa cards have “Infinite” or “Infinite Privilege” within the name, and a few Mastercards have “World” or “World Elite.” These tiers are designed to convey that these are premium cards that provide additional perks and advantages, but they arrive with higher income requirements and annual fees.
