Visa versus MasterCard

By: EconomyWatch   Date: 6 October 2010

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Neither Visa nor MasterCard issue any kind of credit card. They are international payment systems that make on-the-spot payments on behalf of the bank or financial institution that issues the credit card. Both MasterCard and Visa depend on banks to incorporate their payment facility. The rate of interest, rewards, annual charges and other features of the credit cards are regulated by the bank that issues them and not by Visa or MasterCard. So, a Visa card issued by Canadian Imperial Bank of Commerce, for instance, might not have anything in common with the card issued by Scotiabank. The same is applicable to MasterCards as well.

Visa and MasterCard: Similarities

Both Visa and MasterCard have achieved the status of being powerful payment systems. Their functioning is similar, including the daily tracking and maintenance of transactions worth billions of dollars worldwide. Additionally, they work upon enhancing their presence among retailers and merchants who accept credit cards.

Whenever a customer uses his/her Visa or MasterCard credit card at partner merchant establishments, both Visa and MasterCard make instant payments on behalf of the issuing authority of the credit card. In return, these payment systems charge the card issuing company or the financial institution a fee in addition to the reimbursement of the payment amount.

However, there have been certain cases when the merchant has declined to accept either Visa or MasterCard. However, such cases are few and far between.

Visa and MasterCard: Differences

Visa and MasterCard barely differ from the customer’s point of view. Selecting one over the other might only be a matter of personal choice. At times, customers are more inclined towards either one of the cards because they have been using that particular brand for a log time. Moreover, a customer’s choice might be governed by the purpose for which they want the credit card. For instance, online gamblers generally prefer Visa cards. As a matter of fact, nowadays people prefer to own both the Visa and MasterCard Debit Card.

‘Visa’ is the trademark of Visa Inc, who can be found at www.visa.com

‘MasterCard’ is the trademark of MasterCard Worldwide, who can be found at www.mastercard.com

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