What is the Difference between Visa and MasterCard

When you hear about the names Visa and MasterCard they might appear to be almost same to you. But, you’ll be amazed to know that both Visa and MasterCard are large payment networks that have completely different functions. According to finance investment companies in Delhi, India even card holders are sometimes not aware of the difference of these two cards and think that they are interchangeable.

The Main Difference:

Actually Visa and MasterCard are offered by two different card issuers. And, depending on the benefits that each card issuer can offer, the payment networks offer benefits on behalf of the card issuer. Thus, perks offered by different cards in the same network can vary widely. So, one Visa card may offer extended warranty protection while another may not.

Both Visa and MasterCard have premium benefit programs advertised to consumers that offer discounts on shopping as well as savings on travel along with other perks. Visa offers its Visa Signature program, while MasterCard features its world MasterCard and world Elite Master Card Programs. For example Visa signature card holders are entitled to use the Visa signature luxury hotel collection, which features more than 900 luxury hotels where cardholders can receive benefits such as free in-room internet, room upgrades and complimentary continental breakfast. On the other hand MasterCard’s world elite program offers its luxury Hotels & Resorts program that features similar perks to travelers.

In addition to this, there are certain discounts available to the holders of Visa and MasterCard business cards. The Visa savings edge program is available to Visa business card holders and it offers savings on travel, electronics and business solutions.  Likewise, the MasterCard easy savings program offers similar savings on shipping, office supplies and travel.

Which One is better:

In real sense of the term benefits offered on credit cards are administered by the payment network and it’s up to the credit card issuer to choose which benefits to offer for a particular card. Also, the rates and rewards of each card is determined by the card issuer not the payment network. Thus, as a credit card user you would be better off by focusing on the terms, rewards and benefits offered by the credit card rather than the payment network it belongs to. However, when it comes to participation in a premium benefit program considering the type of card you are holding can definitely help you achieve the premium perks. So, the final conclusion is that although both the cards appear to be very similar, Visa and MasterCards do offer some distinctions that are sufficient enough to convince you choose one card over another.