Mastercard vs Visa Card | Which is Better?

The use of modern credit cards dates back to the 1950s in America, which was then brought to the UK by Finders Services in 1961. Mastercard was started in 1966 by the name of MasterCharge card and became known throughout the world as Mastercard in 1979. The Visa card was first started as  BankAmericard credit card by the Bank of America in 1958 and gained popularity around the world as a Visa card in 1976.

Working Structure of Mastercard and Visa Card

Working Structure of Mastercard and Visa Card

Both Master and Visa cards act as the middleman between the user, bank, and retailer who receive payments. The companies do not offer credit or debit cards directly but through financial service providers such as banks. The main job of these companies is to verify the transfer that is happening between the customer and retailer through the card. The financial institutions set the terms and conditions and other benefits on the card.

Benefits of using Master and Visa Cards

Master and Visa cards both facilitate a range of benefits, such as

  • The first and foremost benefit is contactless payment, which can be done by swiping your card on the card reader
  • Using both cards comes with a range of perks and benefits which can availed according to your card level and type.
  • Both card companies offer a secure system for your online transactions to provide you an ease of mind when shopping online at your favourite online stores.
  • The transaction process for both cards is designed to be simple so that every age group can perform it.
  • Both companies offer 24/7 services to provide efficient support if you lose your card anywhere in the world or face any other issue with your account.
  • Both companies have zero liability policies in place. It means you will not be held responsible if there are any illegal transactions made through your Visa or Mastercard.

Difference Between Mastercard and Visa Card

Difference Between Mastercard and Visa Card

Although the process of working is the same for both cards, there are still several differences between them.

Exchange Rates:

One of the differences comes in exchange rates when you try to convert your currency.

  • If you are using a Mastercard, you will pay Mastercard exchange rates, which are better compared to Visa cards.
  • If you are using a Visa card, you will pay Visa exchange rates.


Different global sponsors promote both companies, which is why you will get discounts and prizes according to your card.

  • Mastercard sponsors include The Oliver Awards, UEFA Champions League and others.
  • Visa card backers include FIFA and the Olympic Games.

Security Methods:

Both cards use different security methods for online transactions.

  • Mastercard uses SecureCode to prevent fraud from contactless transactions.
  • Visa cards use Visa Secure to provide security to its customers.

Card Levels:

Both companies offer different card levels with varied perks attached.

  • Mastercard offers levels of cards such as Standard, World and World Elite.
  • Visa card levels include Traditional, Signature, and Infinite.

Service Fee:

  • Service fees for using Visa cards are based on the volume of cards and charged to the issuer.
  • Mastercard’s service fee is negotiated firsthand and calculated using the percentage of global dollar volume.

Number of Cards:

  • The online transactions and purchases of Visa cards are higher, and also the number of cards that are circulated throughout the world.
  • The number of Mastercards is low as compared to Visa cards.

Benefits and Discounts:

The extra benefits and discounts that come with both cards also differ from each other. However, the perks are mostly dependent on the bank that is issuing your cards.

  • Benefits are slightly higher with Visa cards
  • Benefits with Mastercards are less than Visa cards

Price Protection:

  • Most of the Mastercard provider offers price protection. It means if you buy a product through your debit or credit card and the price of that product decreases within 60 days of your purchase, then you are eligible for a payback.
  • A visa card will need to be confirmed by your financial institution.