Visa and MasterCard: Does one have an advantage?
26 May 2008
Credit cards come from several major providers, namely MasterCard, Visa, American Express and Diners Club. While there are other providers of credit cards, these four are the major competitors with specialisations in different markets. American Express and Diners Club focus on premium credit cards and offer exceptional service for a higher price. Visa and MasterCard, however, have a more generalist focus and the prevalent credit card companies in the world. Many credit cards come in a Visa or MasterCard variety with no discernible difference, so is there an advantage to choosing one over the other?
Essentially, you are unlikely to find any meaningful difference between MasterCard or Visa service if a card offers options for both. Both are accepted at a staggering number of locations worldwide and extra credit card processing fees are normally not charged on transactions with either kind of credit card. You may find a moral or ethical advantage, though, as credit card companies make money on every transaction.
The issuers of credit cards such as banks make their money from interest and fees rather than transactions. On the other hand, Visa and MasterCard profit from transactions by facilitating the process of credit card transactions. This means that you may find that while there is little enough difference in service between the two providers you may wish to choose one based on which has the most ethical business practices in your view.
Please visit our comparison pages and dedicated Visa and MasterCard pages for a range of excellent credit cards.
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