Mastercard vs Visa Card: Important Differences and Similarities to Know
Mastercard vs Visa card – which is better? This is a common question among cardholders as they are among the largest payment networks in operation today. They act like a bridge between the user, bank and seller.
The Reserve Bank of India has ordered credit card companies and banks to let their customers choose their payment networks for their desired cards. Both VISA and Mastercard offer different tiers of credit cards with different perks, making it crucial to understand the similarities and differences and choose smartly.
Before we dive into the Mastercard vs VISA card comparison, it is essential to take a quick note that they are not credit card issuers. Both are payment networks which enable smooth credit card transactions, online or offline.
How Payment Networks Work
Understanding how these networks work is crucial to make an informed decision. Here is an overview of how the transaction happens:
- You can initiate the transfer by providing the details of your card
- The merchant’s financial institution (acquiring bank) sends an authorisation request
- The payment network receives this request via the payment gateway (payWave in Visa and PayPass for Mastercard)
- The payment network forwards the request to the card issuer, which accepts or declines the request based on your account details
- The payment network then relays the message to the acquiring bank, and if approved, the network will clear and settle the payment
Key Similarities Between Visa and Mastercard
Visa and Mastercard share many similarities in what they offer, as they are payment networks.
- They are not credit card issuers
- Both are widely accepted across India and globally
- Both offer cards in different tiers with different benefits
- Both provide secure payment gateways, fraud and purchase protection, and many other perks
- Both have emergency assistance, card replacement, extended purchase warranty and rental car collision protection
Key Dissimilarities Between Visa and Mastercard
Although both are payment networks, there are some differences between them that affect your overall experience. Here is a tabular overview of these distinguishing factors:
| Characteristics | VISA | Mastercard |
| Payment Mode for Contactless Transactions | payWave | PayPass |
| Cards and Purchase Volume | Higher circulation of cards in the market | Lesser circulation than VISA cards |
| Charges | Based on the card volume | Based on a percentage of the global dollar volume |
| Benefits | Emergency Assistance and Travel ProtectionDiscounts and benefits at over 900 luxury hotelsZero liability policyReimbursement for lost luggage, trip interruption, or cancellationPrice protectionReturn protectionExtended warranty protection | Access to golf club games and lessons Selection of luxury hotels and resorts at 3,000 propertiesLower hotel ratesZero liability protectionMobile phone protectionMastercard’s ID theft protectionMastercard’s ID theft protection |
Key Dissimilarities Between the Tiers of Visa and Mastercard
As mentioned, both credit cards have different credit card tiers, which you can choose from. All these come with their own benefits, and understanding them can help you decide which to choose. Here is an overview of these differences:
VISA Credit Card
| Classic | Visa’s Global Customer Assistance Services which is available 24x7Emergency cash advance and card replacement |
| Gold | Special offers at retail, travel, dining, and entertainment establishments |
| PlatinumSignatureInfinite | Global acceptance and customer supportWorldwide ATM networkExclusive offers and privileges |
Mastercard Credit Card
| Standard | Mastercard ID theft protection, global service and zero liability protection |
| Platinum | Mastercard ID theft protection, zero liability protection, global emergency services |
| World | Standard Mastercard benefits along with complimentary professional travel services, hotel stay and lowest rent guarantee and airport concierge |
| World Elite | World Mastercard benefits with World Elite concierge, mobile phone protection and additional discounts during promotional events |
How to Choose Between Visa and Mastercard
You should know as a cardholder that your user experience will not be influenced by VISA or Mastercard. Your card issuer influences the terms of usage and perks like rewards and security. So, choosing the right variant of credit card is more valuable than choosing a payment network.
Only certain areas enjoy network-specific perks, making it essential to choose your credit card wisely. A credit card, either Mastercard or VISA, is a great choice in India, as long as the terms and conditions on usage of a credit card and its benefits are favourable to you.
Find a credit card that charges no or low annual fee, has a good reward system, provides easy EMIs and is easy to use and maintain. Look for specific perks that matter to you, regardless of whether the payment network is VISA or Mastercard.
The One Credit Card has both these networks enabled on its fully stacked virtual credit card. Enjoy everyday benefits like cashback, reward points and good deals on entertainment, shopping, travel, education and much more. Take complete control of your finances on the powerful One Credit Card App. If you don’t have an instant credit card apply online for one now to unlock your financial freedom.
