Visa Vs Mastercard: In-Depth Comparison (2020 Edition)

(Many of the links in this article redirect to a specific reviewed product. Your purchase of these products through affiliate links helps to generate commission for LiveWell, at no extra cost. Learn more)

Today, many people have at least one credit card. The most well-known of these are Visa and MasterCard. However, as far as most consumers are concerned, there is no real difference between them. Let’s take a closer look at Visa vs Mastercard.

Both are widely accepted worldwide, and it is very rare to find a location that will accept one but not the other.

Visa and MasterCard don’t issue credit cards. Banks do the issuance of credit cards. They rely on banks to issue credit cards that utilize these payment methods. These companies process credit card and debit card payments between merchants and banks.

However, they may offer some perks and benefits. The interest rates, annual fees, rewards, and other credit card features and charges are issued by the banks. When a credit cardholder pays his or her bill, it’s the financial institution that receives the payment and Visa or MasterCard.

Visa calls itself a global payments technology company and can process payments on several platforms while MasterCard is a technology company that focuses on keeping your payments safe and secure.

When comparing Visa and MasterCard, you will find a lot of similarities and slight differences. However, both offer different levels of benefits.

Visa And Its Levels Of Benefits

Photo from Pixabay

Traditional Benefits

These include cardholder inquiry service, Lost/stolen card reporting, emergency replacement, and emergency cash, auto rental collision damage coverage, zero fraud liability, and emergency roadside assistance.

Signature Benefits

These include all the traditional benefits, as well as extended warranty protection and worldwide travel, year-end summary, travel and emergency assistance, concierge service, and emergency assistance.

Infinite Benefits

These include all signature benefits plus return protection, purchase protection, travel accident insurance, trip cancellation and interruption insurance, trip delay reimbursement, and lost luggage reimbursement.

Mastercard And Its Levels Of Benefits

Photo from Pixabay

Standard Benefits

These include emergency card replacement, MasterCard global service, identity- theft protection, and zero fraud liability.

World Benefits

These include the standard-level benefits offerings as well as cellphone insurance, trip planning assistance, airport concierge, travel benefits through MasterCard Travel & Lifestyle Services, and discounts and promotions with select retailers.

World Elite Benefits

These include all world benefits, plus golf benefits, higher cell phone insurance claim limit, and additional discounts and promotions.

Comparison Of Benefits: Visa vs. MasterCard

Concerning benefits, there are slight differences between Visa and MasterCard.

Conversion rates: MasterCard generally provides better exchange rates when you make purchases in a foreign currency. It is advisable to use MasterCard rather than Visa on general spending, for it will help save money.

Auto rental collision damage waiver: Visa doesn’t set a limit on its loss-of-use coverage, while MasterCard may cap it at $500. Here’s which credit cards offer the best car rental insurance.

Return Protection

As long as a purchase was made on a MasterCard, one may be able to refund the cost applied for eligible return that was declined by the merchant through the help of the MasterCard’s return protection.

Satisfaction Guarantee, a feature that is available on most MasterCards, usually offers refunds of up to $250. However, it is only valid within 60 days from the date of purchase.

On the other hand, Visa only guarantees return protection with its Infinite cards, but Signature cards may also have it as well.

Purchase Protection

Insurances are both available for MasterCard, Visa Signature, and Infinite Cards, which typically covers eligible purchases within the 90-day mark from the date of purchase. These cover conditions, such as stolen items a week after purchasing.

Price Protection

When a person finds a price for the same item that is lower than the amount it was bought, a difference refund may be applied by this feature. Standard MasterCards usually offers this for up to 60 days after purchase.

On the other hand, both the MasterCard World and World Elite may take it up to 120 days from the date of purchase. This also applies to Visa cards, though not all accommodate this feature.

Specific Advantages: Visa vs. MasterCard

1. Annual Percentage Rate or APR
It is the interest rate a person pay on his credit card. Currently, the card with the longest balance transfer APR is Mastercard Citi Simplicity® Card.

2. Travel partners
Visa offers more co-branded hotel and airline credit cards.

3. Student and secured cards
Mastercard has better secured and student credit cards, such as the Capital One® Secured Mastercard® and Citi Rewards+ Student Card.

4. Cashback cards
Visa offers more cards with 1.5% flat-rate cashback. However, the Citi® Double Cash Card offers 1% cashback on all purchases. Additionally, it gives another 1% as you pay on your purchases.

5. Providers with transfer partners
The rewards program a person will use and enjoy may affect which network he will go with. Chase, for example, is a big Visa issuer. Meanwhile, Citi mostly issues Mastercards.

Visa Vs. MasterCard: Considerations And Options

Photo from Pixabay

Both Visa and MasterCard offer a variety of considerations and options. Listed below are few of these.

1. Credit Scores Are Required for Cards

The banks sponsoring the card decide whether to approve the card because they’re the ones taking the financial risk in extending the credit. Excellent credit scores for approval are crucial.

Some banks offer credit repair cards for individuals with even lower credit ratings. These individuals are given low credit limits but with high-interest rates.

These tend to have very low credit limits and may come with a higher interest rate. However, those with good credit ratings are given the best benefits.

2. Discount Programs for Credit Cardholders

Some credit cardholders are entitled to discount programs. Mostly, businessmen are enjoying this program. Participating merchants include gas stations, hotels, and car rental agencies.

3. Rewards Cards Are an Option

Both Mastercard and Visa work with banks that provide travel rewards, store-specific rewards, food, and beverage rewards, and cashback earned on every dollar spent.

Which Is The Better Credit Card?

Visa and MasterCard are both efficient and seen as equal when it comes to their usefulness. The better credit card is measured by the benefits given, ones that are found, and provided by the banks that issue these.

Moreover, determining what works better is not only based on the features presented, but also the needs of the consumers that these cards cover. By considering these conditions, one would surely benefit and maximize the features in a way that will fit their lifestyle without a problem.

When it comes to Visa vs Mastercard, it will all depend on what is important to consumers and where they will enjoy it.