Difference between visa and MasterCard
Visa vs MasterCard:
MasterCard and Visa are bank card payment networks that provide various financial services to banks and their clients. Both are leading credit card companies with payment accessibility options in different countries around the world. They are also both based on providing a payment method that charges interest on card balances targeting the financial organizations rather than the individual consumer. However, for almost all the customers, Visa and MasterCard seem to be confusing. Therefore, this article will provide a brief explanation for those who are still blind to the differences between Visa nad MasterCard.
What is Visa card?
Visa card is a type of credit card, a plastic card used to obtain goods and services, which the buyer pays for later, which can be used all over the world. Visa debit cards are provided by both major and local banking institutions throughout the country. They offer the convenience of a credit card without the hassle of monthly bills and interest charges. They operate by debiting funds from your checking account whenever you make a purchase with your card. However, unlike traditional debit cards, many of which are only accepted at ATM machines, Visa debit cards are accepted at any location that accepts Visa credit cards. Visa offers prepaid debit cards as an alternative to traditional debit cards which are linked to your bank account. Visa prepaid debit cards operate in essentially the same way as their traditional counterpart with the exception being that you pre-load your card with a specified amount of money before making purchases with the card. Prepaid Visa debit cards can be pre-loaded online or at a participating retail location. Users may also choose to have their paychecks automatically applied to their prepaid debit card through direct deposit. When you make a purchase at a retail location, the Visa debit card give you the option to input the PIN (personal identification number) or sign for your purchase. Having this option allows you to sign for purchases if you have forgotten your PIN or to authorize others to use your card by providing them with your PIN. However, you should always use extreme caution when providing another person with your PIN. In most instances, it is not recommended. Your Visa debit card allows you make online purchases from any retailer that accepts the Visa credit card. Since Visa is one of the most widely accepted cards in the world, using your Visa debit card to make purchases should rarely be a problem. Additionally, if your consumer or utility service company has enabled “online bill pay,” you should be able to use your Visa debit card to pay your bills conveniently online.
What is a master card?
MasterCard Worldwide (NYSE: MA) is a membership organization owned by the 25,000+ financial institutions that issue its card. MasterCard is also the company’s brand of credit cards. It was originally created by United California Bank (later First Interstate Bank, subsequently merged into Wells Fargo Bank), Wells Fargo, Crocker National Bank (also subsequently merged into Wells Fargo), and the Bank of California (subsequently merged into the Union Bank of California) as a competitor to the BankAmericard issued by Bank of America. BankAmericard is now the VISA credit card, issued by Visa International. The original banks behind MasterCard were United California Bank (later First Interstate Bank and subsequently merged into Wells Fargo Bank), Wells Fargo, Crocker National Bank (also subsequently merged into Wells Fargo), and the Bank of California (subsequently merged into the Union Bank of California). MasterCard SecureCode is a new service to enhance your existing MasterCard account. A private code means added protection against unauthorized use of your card when you shop at participating online merchants. MasterCard’s current advertising campaign tagline is “Priceless”. The slogan associated with the campaign is “There are some things money can’t buy. For everything else, there’s MasterCard.” The Priceless campaign in more recent iterations has been applicable to both MasterCard’s credit card and debit card products. They also use the Priceless description to promote products such as their “priceless travel” site which features deals and offers for MasterCard holders, and “priceless cities”, offers for people in specified locations.
What is the difference between MasterCard and Visa?
First of all, Visa has an edge when it comes to how many merchants accept cards branded with its logo. While MasterCard is very popular, Visa is accepted even more widely. Someone traveling to other countries might find that Visa is more convenient. Neither MasterCard nor Visa actually issue their own cards, rather they create a form of franchise where financial institutes use their services depending on the brand they choose. MasterCard and Visa market different financial brands through their parent companies. For example, MasterCard Worldwide has PayPass and Maestro while Visa has Visa Classic and Silver. These two companies simply create a network allowing clients to receive payment through their systems. Mastercard and Visa do not issue cards or set percentages or annual fees on the cards, rather their customers are the financial institutions who become the managers of the cardholders and their merchants. They make money by allowing the retailer to use their payment system for a charge.
Other than that, it is mostly a matter of what perks are provided by the payment processors. MasterCard and Visa add fraud protection, purchase protection, extended warranties, and different types of insurance (such as travel insurance and rental car insurance). In many cases, these services are almost identical between MasterCard and Visa. However, Visa offers “Loss of Use” coverage on car rental insurance that is superior to what MasterCard provides. On top of that, you have a better chance of getting “return protection” when you want to obtain a refund for purchases you have made using your credit card with Visa. Visa can offer you protection when shopping online, with their new ‘Verified by Visa’ scheme. MasterCard by comparison have implemented a new ‘SecureCode’ scheme, which protects online purchases in a similar manner.