Visa vs. MasterCard: What’s the Difference?

Deciding between Visa and MasterCard? Unsure what will give you the most benefits? Learn the differences between them in this article.

Visa vs. MasterCard: an overview

Visa and MasterCard are the two most popular electronic payment systems. Rather than loaning money themselves, they partner with financial organizations like credit unions and banks, and only process the transactions made using their cards. Banks often issue credit in partnership with both providers, and the cards for these accounts feature both logos.

People all over the world take advantage of the opportunities credit cards offer. According to the Federal Reserve Board’s 2 023 data, more than 80% of Americans use credit cards, about 93% use debit cards, and prepaid cards are also gaining popularity.

If you have a MasterCard or a Visa credit card, you can be sure it will be accepted almost anywhere in the world. Visa has a slightly larger merchant network in some regions.

Both companies are expanding in developing markets, working to increase the volume of digital payments in disadvantaged regions.

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MasterCard vs. Visa: statistics

Statistics can tell a lot about a company’s success. There are several important indicators to look at to get a representative perspective of the company.

1. Annual revenue — how much money the company makes over a calendar year.

• In 2023, Visa showed an almost 10% increase with revenue up from $30.18 billion the previous year, to $33.35 billion.

• MasterCard’s annual revenue increased by 12% in 2023, rising from $22.237 to $25.098 billion in a year’s time.

2. Total payment volume — the value of all transactions over a certain period.

• For Visa, it is $3.28 trillion by the fourth quarter of 2023.

• For MasterCard it is $1.92 trillion.

3. Total transaction volume — the number of transactions made with the payment system. The table below shows the comparative rise of Visa and MasterCard’s total transaction volume from 2014 to 2023. Visa again has the lead.

The graph below shows the volume of transactions measured yearly from 2014 to 2023. Here, too, there were more purchase transactions made with Visa general purpose cards than with MasterCard.

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Visa overview

Visa offers several products: consumer debit and credit cards, prepaid cards, ATMs, and business services. Also, there are four reportable business segments: data processing, service, international transactions, and other.

Visa offers three card levels: traditional, signature, and infinite. With signature and infinite levels you get access to premium benefits and high-level purchase protection.

Service and data processing fees are a big part of the company’s revenue. Visa charges the organization that issued the card. The service fee depends on the card’s volume. The data processing fee is also paid by the issuer. The issuer then gets these fees back by charging the customers for each transaction.

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MasterCard overview

In terms of products, MasterCard focuses on consumer debit and credit, which are the most popular among customers, as well as reloadable prepaid cards and corporate solutions. MasterCard has a single reportable business segment called payment solutions, divided by regions that include the United States and some other countries.

MasterCard charges two types of fees: service and switching, or data processing fees. They are calculated differently than Visa’s fees: a service fee is calculated as a percentage of the total global dollar volume, and a switching fee is a fixed amount of money charged for each transaction, paid by the card issuer (for example, a bank) when you use your MasterCard.

MasterCard also provides three card levels with different sets of rewards: standard, world, and world elite.

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Visa vs. MasterCard: benefits comparison

Both payment processors offer a great variety of benefits. Let’s compare some of them.

Emergency services

There are services that both systems provide.

• Emergency cash loan. If your card is lost, stolen, or you just don’t have it with you, you can still withdraw money. Usually, whether you are abroad or in your home country, you can get money by calling the processor’s contact center.

• Lost or stolen card reporting. Contact the network and make sure no one gets access to your money.

• Emergency card replacement. Get a replacement card within 7 days.

• Travel and emergency assistance services. Get assistance in an emergency situation. Note that the payment system doesn’t pay for any services, goods, or aid.

Only Visa offers pay-per-use roadside assistance. Roadside dispatch ensures that help is available whenever and wherever you need it while traveling. If your car breaks down, you get locked out, or your tire is flat, you can call the hotline and get help. The program provides a variety of services: tire changing, fuel delivery, towing, jump-starting, and more.

Travel benefits

Both options make an excellent travel card. Here are some of the perks they offer for travelers.

Travel benefits depend on the tier. For example, airport concierge access, hotel stay, and lowest rate guarantees, as well as rental car insurance and basic global services, come with the World MasterCard.

Visa offers discounts at selected hotels and a rental car collision damage waiver at the Traditional tier. All this, plus travel and emergency assistance services, built-in auto rental coverage, global entry statement credit, luxury hotels, and airport lounge access comes with an Infinite card.

Purchase protection and insurance

When it comes to purchase protection and security, Visa leaves MasterCard behind.

There are services that both provide.

• Zero liability fraud protection. If someone steals your credit card details or makes a purchase without your permission, you won’t have to pay for it.

• Cell phone protection.

• MasterCard ID theft protection or ID Navigator powered by LifeLock (Visa). It offers such features as dark web monitoring, data breach notifications, and privacy monitoring to help prevent identity theft.

A Visa card gives you more safety features and opportunities.

• Lost luggage, trip or baggage delay, and trip cancellation reimbursement.

• Extended warranty protection.

• Airline incidental fees.

• Travel accident insurance.

• Hotel theft protection.

• Price protection.

• Emergency evacuation.

• Return protection.

• Purchase security.

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FAQ

Which is better: Visa or MasterCard?

To choose a credit card, you should focus on your priorities. Decide what advantages are important to you.

Both companies offer extra benefits, especially related to travel and shopping. These can help you if your flight gets canceled, or you can get a refund for damaged items. The specific perks and protections can be different depending on the card, so make sure to check what’s included with yours. Don’t hesitate to consult the bank that issues the card.

Whether you’re shopping online, traveling, or trading, all of these features make credit cards safe and convenient.

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Who owns MasterCard?

An international non-profit called The MasterCard Foundation owns about 10% of shares. More than 65% belongs to institutional investors and mutual funds. Public companies and individuals own about 24%.

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Are Visa and MasterCard the same company?

No, they are not. They are two separate companies and, in fact, competitors.

Is Visa a private or public company?

Visa Inc. is a public company. That means it must disclose information about its financial operations on a regular basis. Its ownership is divided into shares that are publicly negotiated on a stock exchange. Individuals and companies alike can buy shares. Anyone, including you, can invest in either Visa or MasterCard.

What are the four types of credit cards?

There are four types of credit cards that you should know about: MasterCard, Visa, Discover, and American Express. These companies are at the top of the card network industry: their cards are accepted in most countries. They all offer different benefits like airline miles, cash back on purchases, gift certificates, and so on. However, only the first two dominate the global market. Unlike MasterCard and Visa, Discover and American Express are not only processors, but also issuers of credit cards.

Is Visa an American company?

Yes, Visa is an American company — Visa Inc.’s headquarters are in San Francisco, California.