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.
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 |
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’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.
Credit Card |
Fees and Charges |
Credit Card Benefits |
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 |
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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 |
|
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. |
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.
Credit Card |
Fees and Charges |
Credit Card Benefits |
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 |
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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% |
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!
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.
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.
Both Visa and MasterCard are accepted worldwide. However, Visa has a slightly better reach and benefits when compared to Mastercard.
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