Difference Between Visa and Mastercard Credit Cards

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:

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

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

^{*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!