In the credit card world, there are two companies who are on top: Visa and MasterCard. They both conduct their business in almost the same way. MasterCard claims to process more than 18 billion payments each year, while Visa claims to have issued 1.6 billion credit cards. So it’s very hard to see who is actually ahead in the credit card
Both Visa and MasterCard are accepted in millions of locations worldwide. At the moment the exact number is estimated to be around 30 million locations. So let’s look at the difference between the two.
Which One Is Best?
Visa and MasterCard are just methods of payment. They merely provide the actual card and the means for the shop or supplier to process the payment for the goods or services that they are selling.
When it comes to which one is better, you actually have to look at the issuing bank, as they are the ones who are deciding the rate, the reward program, the annual fee and all of the other charges that are associated with the credit card. Basically, when you pay your credit card bill, the money actually goes to your bank, not to Visa or MasterCard.
So How Do People Decide?
In recent years, the best credit cards have come with prestigious rewards programs and lots of services. These high end features are found with credit cards that are Platinum or higher. However, the annual fees for these cards are higher, so even though the fees are offered with the card, do you have to pay a higher annual fee.
But these cards, that offer concierge assistance and other exclusive offers, are designed to make the banks and other financial institutions promote either Visa or MasterCard to their customers.
What Other Choices Do I Have?
Aside from Visa and MasterCard, there are also Diners Club and American Express.
Diners Club is a charge card. This means that although it is similar to a credit card, it is not completely identical. The biggest difference is that it does not work on credit. The dollar amounts that have been charged must be paid off in full every month. Card users cannot carry their debt over to the following month and pay it slowly.
American Express on the other hand, is another very popular credit card provider. American Express claims to have issued more than 86 million credit cards and charge cards worldwide. They are known for their rewards and services and their credit cards are more difficult to obtain.
How Should I Choose My Next Credit Card?
If you choice is between having a Visa or a MasterCard, then rather than looking at these two providers, it will be best to concentrate on looking at the actual charges that are associated with the card. Look at the different banks and what they have available to you. The best strategy is to compare all of the different products and compare the interest rates, annual fees, balance transfer rates and the reward programs.
However, keep in mind that it will be very unlikely that you will be effected by which provider the card is from. Both Visa and MasterCard are widely accepted everywhere, as you can pay for your petrol at your local petrol station, you can pay for a flight online and then you can even pay for your lunch in New York.
The deciding factors should be what the bank is offering you and the fees that are associated with a credit card – not the type of credit card that it is.
