Credit cards are one of the most used payment methods in our country. At this point, we all know the power of credit cards.
They are simply just an amazing and convenient way of making payments. Besides, it is pretty easy to apply for a credit card, so most Americans have access to them.
Still, you have probably heard stories about people falling into spiral debts due to credit cards in the past.
Well, if you know how to manage yourself, then credit cards won’t be a double-edged sword for you. So, if you are looking to get a new credit card, or if you are an old credit card user but still don’t know which one to pick, then you have arrived at the right website on the Internet.
Today, we will share with you everything you need to know about Visa vs Mastercard: the two biggest payment processors in our country. After reading this blog post, you will now comprehend:
- The importance of credit cards in our daily lives.
- Mastercard vs. Visa: pros and cons.
- Is it really one better than another?
The short answer to this question is yes! Obviously, there are people that prefer to pay with cash whenever they have the chance.
Nonetheless, the truth is that credit cards are the best way to start building a good credit score.
The importance of having a good or decent credit score is now greater than ever before. Recently, our whole world experienced a catastrophic event where economies were shaken to the ground.
At that moment, most of us understood the importance of installment loans in our daily lives. So, if you want to improve your credit score, credit cards are the best tool to use.
On top of that, they also allow you to buy things you need even if you don’t have enough cash to pay for them right now. Naturally, you will need to check interest rates and fees so you can have a broader understanding of how much credit cards really cost, but at the end of the day, their advantages are bigger than many people believe.
Some years ago, electronic payments were the future. Now, they are our present. This industry is dominated by four giant companies: American Express, Discover, Visa, and Mastercard, being the last two, the most popular of them all.
In the case of Mastercard, the company mainly focuses on providing financial products such as consumer credit, prepaid cards, commercial product businesses, and, of course, credit cards.
So, how does Mastercard earn revenue? Simple: they earn it from data processing fees and services.
They calculate these fees based on the global dollar volume, so it might change over time.
Now, let’s take a look at Visa. Visa’s main products are prepaid cards, debit cards, and global ATM services.
They have their own fee structure different from Mastercard’s, but they still charge for data processing fees and services.
They are well known for offering traditional, signature, and infinite level credit cards, each one targeted to different audiences.
At this point, it seems like both business models are very similar to each other. So, what’s the big difference?
Well, there are different benefits when it comes to using one credit card or another.
Nonetheless, it is fair to mention that they are both accepted nearly everywhere, so there are few limitations when it comes to using Visa or Mastercard.
Besides, it is utterly essential to mention that neither Visa and Mastercard issue nor distribute credit cards: they just process payments between financial institutions and merchants for purchases.
Yes, there are some benefits when it comes to selecting payment networks, but this really depends on the type of purchase you are about to make.
So, long story short, issuer benefits are more important than the possible benefits you could get by using Visa or Mastercard. Still, let’s take a deeper look at this.
The only way to make an accurate comparison between Mastercard vs. Visa is by comparing their three main products side by side.
As we mentioned before, it is the issuer who better determines the benefits and not Visa or Mastercard. So, imagine that Visa is offering an amazing car insurance benefit. Well, not every Visa card will have this; it depends mainly on the issuer.
Hence, the issuer’s benefits might even surpass the advantages that Mastercard or Visa can give you. Without further hesitation, let’s compare the three types of cards of each company.
|Traditional: among the main benefits of this card, we find zero fraud liability, emergency card replacement, and auto rental collision damage coverage.||Standard: identity theft protection, zero fraud liability, and emergency card replacement for whenever the user needs it.|
|Signature: users of this credit card will have all Traditional benefits plus extended warranty protection and emergency assistance.||World: Standard-level benefits plus cell phone insurance, access to trip planning, and discounts and promotions with select retailers.|
|Infinite: this status provides Signature benefits as well as travel accident insurance, lost luggage reimbursement, and global purchase protection.||World Elite: World-level benefits plus additional promotions and discounts all over the world.|
If we had to answer the question about “which one is better, Mastercard or Visa?” we would safely say neither.
Don’t get us wrong, there are minor features, but it all depends on the way you use credit cards. The important thing here is to understand the issuer’s benefits, that’s the real point of this blog post.
Besides, you still need to comprehend which cards you qualify for, which highly depends on your credit score. The rewards and benefits are way better the higher your credit score is, so it’s better to think about this than thinking about if the card is Visa or Mastercards
At the end of the day, we are responsible for our own financial status.