Visa vs Mastercard – How Do They Compare? (Credit Card Comparison)

According to data released April 26, 2018,
by the American Banking Association, there were 364 million open credit card accounts
in the United States as of the end of 2017. And credit cards are found in most Americans’
wallets with multiple studies showing that about 7 in 10 Americans have at least one
credit card. With so many cards on the market, which one
is the right one to choose? We won’t be looking at every card out there
today but we will be comparing two of the major players. The two that we’ve all heard of and most
of us have used or will use at some point. Welcome to this episode of The Infographics
Show: Visa vs. MasterCard. Visa’s history dates back to 1958 when Bank
of America launched the BankAmericard. This was the first mass-marketed credit card
program and it quickly grew in popularity. By the 1970s, BankAmericard was an independent
entity and it was renamed Visa. Visa then launched VisaNet, which was the
first electronic payment authorization, clearing, and settlement system in the world. Visa has a market capitalization of $195 billion,
there are 11,300 people working for the company and there are $6.5 trillion in transactions
made on Visa cards around the world each year. What about MasterCard? MasterCard was originally known as Interbank/Master
Charge and it was created by several California banks as a competitor to the BankAmericard
– which as we just mentioned was what Visa used to be called before it was called Visa. From 1966 to 1979, MasterCard was called Interbank
and Master Charge. The MasterCard brand officially came into
effect in 1979. It continued to grow as a major credit card
brand and listed as a public company through the New York Stock Exchange in 2006. MasterCard has a market capitalization of
$110 billion, there are 10,000 MasterCard employees and there are $3.6 trillion transactions
made on MasterCards around the world each year. So the numbers tell us that Visa is the bigger
company, but today both Visa and MasterCard are widely accepted in over two hundred countries
and it is very rare to find a location that will accept one but not the other. However, neither Visa nor MasterCard issue
any credit cards themselves. They simply provide the payment service and
mechanism and then rely on the banks to issue credit cards. So when it comes to comparing specific card
benefits such as monthly fees and interest rates, you need to look at the bank or financial
institutions that issue as well as assessing Visa or MasterCard themselves. So which is better, Visa or MasterCard? Before we get in to a head to head comparison,
let’s first look at what’s important to take in to account when choosing a credit
card. Firstly you need to have a good think about
what you want to use the credit card for. Maybe you want to buy things online, or on
holiday, or to pay your bills. And how you intend to pay off what you owe
on your card also has a bearing on which card is the best for you. Do you intend to pay the full bill each month
or spread repayments over a period? Then you need to look at what the card has
to offer that will best match your purchasing and repayment profile. Both Visa and MasterCard offer a number of
features and service offerings. Let’s take a look at some of these. Premium cards – Both Visa and MasterCard
provide a range of standard and premium card options. Features vary depending on the credit card
provider but could include things such as concierge services, global customer assistance,
complimentary insurance and special offers at a range of stores, hotels and restaurants. Contactless payments – This is functionality
that allows you to make payments by simply tapping your card against a compatible reader. “Tap and Tag” as it’s more commonly
know. Exclusive offers – Visa has their Entertainment
Program and MasterCard the Priceless Program. Both provide offers with entertainment, dining,
travel and shopping. And the options vary depending on whether
you are a premium or standard cardholder. Global security services – Both card companies
have global service support hotlines to provide assistance if a card is lost or stolen, and
these services are available 24/7 from anywhere in the world. Online shopping protection – Security is
an important area for Visa and MasterCard and they have their own security processes
when shopping online. There is Verified by Visa and MasterCard SecureCode. When using these services you will be prompted
to enter a password or unique SMS code when you make purchase at an online store. So with these cards being so similar, how
do you choose between them? From what we learnt online, it’s best to
look at specific details for the card you’re considering. Here’s are some of the features and benefits
worth considering: 6. Annual fees – Most credit cards charge an
annual fee and it’s something worth exploring when you’re deciding which card is best
for you. The fee can be as low as $25 for a basic card,
or as high as $700 for a premium option card, which comes with all the premium benefits. The credit card issuer determines the actual
annual fee depending on the features available. Visa Platinum, Signature and Infinite cards,
as well as World MasterCard’s, usually have higher fees because of the premium features
and services they provide. 5. Interest rates – Standard credit card interest
rates can have a major impact on the cost of the card you choose, so it’s important
to look at both the purchase rate and the cash advance rate for each card you compare. You also need to decide how you intend to
pay your card off. Will you pay it timely each month, or let
the balance roll over? Your spending and repayment habits make understanding
the interest rates very important. 4. Rewards – if you are a big spender then
rewards programs can be attractive and there are a wide range of Visa and MasterCard rewards
and frequent flyer programs. These products offer you points per $1 spent
and when comparing the programs it’s worth considering the earn rate, the type of rewards
available and the average amount you will spend on your card, so that you can decide
if the annual fee will be worth it as the fee will often be adjusted to how attractive
the reward program is. 3. Interest-free days – We already talked about
understanding your repayment habits, and one of the main reasons this is important is because
cards will have different interest free periods. Both companies will usually offer some sort
of interest free period, so if you pay your bill within that time, you can save big. 2. Introductory offers – Credit card providers
regularly offer new customers additional perks to encourage you to bin your current card
and swap providers. Offers such as bonus points, 0% balance transfer
interest rates or 0% purchase rates. But these features are generally available
for an introductory period so may only add short-term value to the card you choose. So make sure you assess all the benefits before
making a decision. 1. Security services – We’ve mentioned security
with online shopping, but in addition to these security services some of the credit card
providers also offer 24/7 fraud-monitoring services, daily transaction limits or even
the ability to temporarily lock your card if you have misplaced it. And in the US all credit cards are now chip-and-PIN
products, which offer superior security for in-person payments when compared to the older
style cards that just have a magnetic strip. While Visa and Mastercard are different on
a corporate level, the variations are relatively minor when it comes to using a credit card
from either of these companies. If you’re in the market for a new credit
card or maybe your first credit card, the important thing to do is focus on the features
that best suit your needs such as interest rates, annual fees and awards programs. Which do you prefer? And do you know other differences between
these two financial giants that we didn’t mention? Let us know in the comments. Also be sure to check out our other video,
What a Dollar ($1) Gets You Around the World. Thanks for watching, and as always, please
don’t forget to like, share and subscribe. See you next time!

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100 thoughts on “Visa vs Mastercard – How Do They Compare? (Credit Card Comparison)

  1. ur video information totally wrong because i have visa card but it's not working on play store for purchasing apps

  2. Y'all still using credit cards?
    I just take a pistol with me , say the same thing "dont fucking move" and i will get everything for free

  3. I got my credit card debts cleared after I contacted +15623677365,without revealing any info to him is the most surprising thing

  4. In Hong Kong, some of the most basic cards do not charge annual fee at all (some required you to repay fully every month), for cards that do charge annual fee, they can often be waived.

  5. They say Visa is more accepted than mastercard. But i think when it comes to prestige and elegance, Mastercard nails it. There are various mastercards around the world and offers it exclusively to elite people. And there is a mastercard that charges $400 annual fee to royal individuals. i don't know with visa. but nevertheless they are all credit cards, they function similarly. Just use it wisely and you'll be fine.

  6. My greenlight card is a mastercard nd my sister has current a visa card i wanna know the difference we aren't even teens

  7. CURVE – One card for all your accounts! (Mastercard & Visa are accepted)
    You have 5 Euro in CURVE with this code: QNBVX94D

  8. Visa and MasterCard are both almost always useless in China. Expect when you go to big international companies like apple.

  9. in algeria we have issues in general with owning one not using it
    most people here want it but can t get it

  10. "It's rare to find a place that will accept one but not the other"
    I went to Costco the other day and they told me they only accept Mastercard. A few years ago, they only accepted American Express.

  11. In the U.S., there are much stronger purchase/fraud protections when using a credit card versus a debit card that's pulling right out of a bank account. All other factors aside: if your card is mis-used and it's a debit card, your money is GONE until or unless you can get it back. If it's a charge or credit card, you've got some time to have the problem fixed before your closing/due dates.

    The only place I shop at that is limited to one credit-card network is Costco (Visa-only these days). There's so many differences in individual credit cards of all "types" that the question of "Visa or MasterCard" is beside the point.

  12. Looks like my parents have more than 20 credit/debit cards which are mostly premium

    Sadly they are expired since 2012

  13. Let me save your time!
    One of the rare clickbait videos on this channel since he didn't compare them really!

  14. I have both of them from Bulgaria with 2% cash back and 20euro annual fee and 9% extra tax if i use somet2… The UK which i have before was awful and expensive 18% annual and ect

  15. In the UK we have never heard of "tap and tag." We just call it contactless, and it's very rare to find a reader nowadays in the UK which is incompatible with the system.

  16. 4:05 "I'm sorry you have lost your credit card. May I have the numbers on the back of the card?" ummm no, I lost my credit card…

  17. The fastest way to wealth is no debt. Don’t get a credit card. If you have one, cut it up ✂️

    Use cash (or debit card online) and save 10%-40% of your income every month. 👍

    After a few years of saving, once you have a few thousand £/$, invest in mutual funds so that in a few years time you can have multiple incomes and be stable financially 👌🙂

  18. If i find a person's credit, bank card and look the numbers i can buy everything on internet, games with it

  19. So no comparison is made – just an obvious statement of what dreary everyday things you use a credit card for lol. What a complete waste of time this video is geez. Pure clickbait😠

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