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Are you running a small business and considering applying for a credit card? Or maybe wondering what type of credit card you should accept in your store? One of the most common questions small business owners have when considering these questions is the difference between Visa and Mastercard.
Both of these payment networks are widely accepted and used around the world. Here’s all the information you need about the world’s two largest payment networks, and the information you need to help you decide which one is right for your business.
Visa overview
Visa provides secure and reliable payment solutions that enable you and your customers to make purchases, pay bills, and access cash anytime, anywhere. Its payment options include credit, debit, and prepaid cards, e-commerce solutions, and ATM services.
Visa offers three distinct types of cards, each with its own features and benefits. However, customers don't get to choose which card and benefits they receive when they sign up for a credit card. Instead, it is at the discretion of the card issuer to determine which of Visa's three card options and accompanying benefits will be offered to customers when they sign up for a credit card.
Mastercard Overview
Mastercard offers similarly secure and flexible payment solutions for both individual consumers and businesses. Similarly to Visa, Mastercard offers credit, debit, and prepaid cards, and commercial business products including payment processing, expense management tools, and commercial payment solutions such as virtual cards and travel cards.
Similarly, Mastercard also offers multiple types of credit cards to issuers, with differing features and benefits. However, just like with Visa, customers do not have the ability to choose which card and benefits they receive. It is ultimately up to the discretion of the card issuer to decide which of Mastercard's card options and associated benefits will be passed on to customers when they sign up for a credit card.
What are the similarities between a Visa and a Mastercard?
Mastercard and Visa are very similar in terms of their global acceptance, payment options, rewards programs, and tiered card programs.
Other key similarities include:
- Neither issue cards directly: Visa and Mastercard cards are issued to users by their chosen bank or credit union
- Accepted globally: Visa and Mastercard are widely accepted worldwide
- Zero liability fraud protection: This safeguards you and your account if your card information is stolen or someone makes an unauthorized purchase on your account.
What are the differences between a Visa and Mastercard?
Although they share many similarities, there are still some differences between Visa and Mastercard. However, the differences in cards, benefits, and offers are mainly determined by the bank or financial institution that issues the card, rather than by the fact that the card is a Visa or a Mastercard.
Which is better, a Visa or Mastercard?
Neither network is inherently better. Their similarity makes them a very even match. You should judge what card is better for you and your business according to the difference in benefits, fees, and interest rates offered by various card issuers.
Is Mastercard more accepted than Visa?
No, Visas and Mastercards have a nearly identical global acceptance rate. This means wherever you can use a Mastercard, it's likely you can use Visa too.
The bottom line
Ultimately, whether your card is powered by Visa or Mastercard doesn't matter much, as either network is generally a good choice. Your decision to take out a credit card should be informed by the benefits, offers, and conditions of the card issuer, not by whether it is a Visa or Mastercard.
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