Difference between Visa and Master

Difference Between Visa and Mastercard Credit Cards

✓ Fast Processing ✓ Great Discounts & Offers ✓ Easy EMI Facility | Apply for Credit Card now!

Visa vs MasterCard

Both MasterCard and Visa work exclusively as network processors and have a unique edge to them. The credit cards offered by both companies are co-branded cards and are accepted worldwide. However, when it comes to their functioning and offerings, there are slight differences between the two. Read on to explore the difference between Visa and Mastercard in detail.

Difference Between Visa and Mastercard

The business models of both Visa and Mastercard are quite similar. They do not directly issue cards to users, but, instead, partner with member banks and NBFCs who then issue a Mastercard- or Visa-enabled card to customers. As such, both payment networks have a broad portfolio of co-branded offerings.

However, there are some key differences between Mastercard and Visa card. These include:

Visa

Mastercard

The service fees on a Visa card are charged based on the card volume to the issuer.

Service fees for Mastercard credit cards are calculated and negotiated as a percentage of the global dollar volume.

Transactions, cards in circulation and purchase volume are larger

Transactions, cards in circulation and purchase volume are lesser

Uses Visa payWave for contactless payments

Uses PayPass for contactless payments

Setting the Terms and Conditions

The issuing financial institution sets the terms and conditions for the payment cards. This includes features like the electronic payment card’s fees, rewards, terms and conditions, and other features. For example, when it comes to a credit card, the issuing bank is responsible for the interest rate structuring, underwriting, and the overall development of the reward programmes for these cards.

Financial institutions that issue Visa and MasterCard cards also offer other perks like fraud protection, identity theft business purchase discounts, and car rental insurance. While a difference between Visa and Mastercard’s interest rates, reward programmes, and credit limits exist, the specific perks are decided by the issuing institutions. On top of this, Visa and MasterCard compete for a co-branded relationship that will also take part in drafting the card’s terms.

Overall, the card payments industry is one that remains complex, involving merchants, lenders, cardholders, and network processors. The network processors are specifically Mastercard and Visa, both of whom have the freedom to structure their fees in any manner they see fit. The structuring and reporting structures make for the biggest differences between Mastercard and Visa credit cards.

Visa Cards

Visa’s core products include prepaid credit cards, debit cards, and credit cards. In addition to global ATM services and business solutions, the reportable business segments of the company are data processing, international transactions, etc. In general, Visa is known for offering different types of card levels. These are Standard, Signature, Platinum, Gold, and Infinite. Each of these categories comes with standardised provisions for its issuers.

Top Visa Credit Cards

Credit Card

Fees and Charges

Credit Card Benefits

Axis MY ZONE Credit Card

Joining Fee: ₹500

Annual Fee: ₹500 (2nd year onwards)

Buy One, Get One free on Paytm Movies

Monthly fuel surcharge waiver of ₹400

4 EDGE REWARD points on every spend of ₹200

20% off at 4,000+ partner restaurants on dining

40% off on Swiggy food delivery

SimplySAVE SBI Card

Joining Fee: ₹499

Annual Fee: ₹499 (2nd year onwards)

2,000 bonus reward points on spends worth over ₹2,000

10x reward points for every ₹150 spent on Dining, Movies, Departmental Stores, and Grocery.

Monthly fuel surcharge waiver of ₹100

Annual membership fee reversal on spends worth ₹1 lakh or more

ICICI Coral Credit Card

Joining Fee: ₹500

Annual Fee: ₹500(2nd year onwards)

25% discount (worth up to ₹100) per transaction on purchase of 2 movie tickets (minimum) on BookMyShow.

25% discount (worth up to ₹100) per transaction on purchase of 2 movie tickets (minimum) on Inox movies.

1% fuel surcharge waiver at all HPCL pumps.

Mastercard

One of the characteristic differences between Mastercard and Visa is that the service fees for Mastercard credit cards are negotiated and are calculated as a percentage of the global dollar’s volume. It issues card issuance licences to banks worldwide. Mastercard is known for offering three different card levels: Standard, Platinum, World, and World Elite.

Top MasterCard Credit Cards

Credit Card

Fees and Charges

Credit Card Benefits

Club Vistara SBI Credit Card

Joining Fee: ₹2,999

Annual Fee: ₹2,999 (2nd year onwards)

1 premium economy class ticket as an e-voucher on annual fee payment

1 Yatra Hotel e-voucher of ₹10,000 against annual spends of ₹8 lakh

4 CV points for every ₹200 spent on the card

RBL Platinum Choice SuperCard

Joining Fee: ₹499

Annual Fee: ₹499 (2nd year onwards)

10% discount on monthly movie tickets on BookMyShow (₹100)

Monthly fuel surcharge waiver of ₹100

1 reward point for every ₹100 spent on regular spends

2X reward points for every ₹100 spent on online shopping

HSBC Premier Mastercard© Credit Card*

Joining Fee: Nil

Annual Fee: Nil

24-hour golf concierge service

Fuel surcharge waiver

Epicure membership (worth ₹25,000) against spends of ₹10,000

Low foreign mark-up fees of 1.99%

ICICI Bank Rubyx MasterCard Credit Card

Joining Fee: ₹3,000 + GST

Annual Fee: ₹2,000 + GST (2nd year onwards)

2 complimentary golf rounds/lessons against spends of ₹50,000 in the last calendar month

Up to 15,000 PAYBACK points every anniversary year

25% discount (worth up to ₹150) per transaction on purchase of 2 movie tickets (minimum) on BookMyShow

*Bank is not a Bajaj MARKETS partner.

Note: As per a July 14, 2021 circular, the Reserve Bank of India (RBI) has restricted Mastercard Asia / Pacific Pte. Ltd. (Mastercard) from on-boarding domestic customers onto its card network from July 22, 2021, onwards.

Now that you know about the essential differences between Visa and Mastercard, visit the Bajaj MARKETS website/app and choose from the finest Visa credit cards and MasterCard credit cards offered by top brands. What’s more? The process for checking your offer and applying for a credit card on Bajaj MARKETS is completely paperless and hassle-free. Apply online to find the best credit card for you! 

FAQs on Visa vs. Mastercard

  • ✔️Which one is better: Visa or Mastercard?

    Both Visa and Mastercard are dependable payment gateways with widespread global acceptability. There may, however, be differences in certain offers that you can avail on specific credit cards depending on whether they are a Mastercard or a Visa credit card. You should, therefore, take a look at the specific card-related offers before applying for a credit card for yourself.

  • ✔️How is Visa different from Mastercard?

    When it comes to Visa and Mastercard, the difference only lies in the payment network which the card uses to process the payment. A Visa credit card works only on a Visa network, while a Mastercard works on the Mastercard payment network.

  • ✔️Is Visa more accepted than Mastercard?

    Both Visa and MasterCard are accepted worldwide. However, Visa has a slightly better reach and benefits when compared to Mastercard.

Happy Customers of Finserv MARKETS

Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!

I am passionate about the vehicle I drive. I want to protect it with the best available option. What amazed me was the full transparency, quick quotes and the attractive discount on the premium while choosing the annual payment option!

Check your personal loan eligibility in seconds!

My husband and I will finally move into our own house this Diwali. All thanks to Finserv Markets, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!

Get the best FD interest rates starting @ 8.40%. Let's start!

Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Orlando with just a click!

Get sum insured up to 1 Crore! Let's start!

The best way to start looking for health insurance is to do a close study of the coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premium!

Zero additional charge on part-payment option on Business loans! Let's start!

I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment with a No cost EMI on Bajaj Finserv EMI store just made my day!

Get home loan sanctioned online in 72 hours! Let's start!