VISA vs. MasterCard Compared – Which Is Better?
Posted July 15th, 2009 and last modified January 31st, 2012Visa and MasterCard are perhaps the two most widely known credit card logos in the world. Both function in a similar fashion. Both are in direct competition with each other as they claim to deal with millions of users and payment processes each year. At the end of the day it is up to us as the consumer to make a final decision in the Visa vs. MasterCard game of choice.
VISA vs. MasterCard a surprising fact of little known knowledge
Perhaps the most surprising part in the war between the two credit card greats is that neither Visa nor MasterCard are directly responsible for issuing credit to you the end consumer. As a matter of fact, credit gets issued by participating banks and other credit institutions.
Both Visa and MasterCard are nothing else but merchant processing systems who partner with financial institutions who themselves stipulate the small print, e.g. your rewards, annual fees, interest rates and other charges.
Most people seem to believe that these are being determined by both card providers but as a matter of fact they are not. To us as end-users both cards do pretty much the same in terms of usage. Both are accepted in more than two-hundred countries and if you travel extensively changes are you are always able to use one or the other to make purchases, wherever you are in the world. Only on very rare occasions does this not apply. It this happens it means you are probably stuck in a jungle cafe in the middle of the Congo.
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- $69 annual fee
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Best Visa Credit Card for the life.
The HSBC Credit Card is one of the few credit cards that offers zero annual fee for life. Moreover, the rewards program of HSBC Credit Card provides discounts on shopping, travel, and accommodation
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- 55 days interest free
- Minimum Income Requirement of $20,000 p.a.
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Who makes the rules then if not VISA or MasterCard?
This is a good question – one we anticipated you’d ask and we are glad you did because the answer is simple if not a little complex. In short, the banks do. They make the rules and if you want the best possible deal on your credit card then you need to shop around.
Visa and MasterCard lend their partners their merchant processing system, that’s it. Plus they also charge banks certain fees like foreign currency conversions fees according to the stock market.
These days the credit card market is VERY competitive in Australia, meaning you as the customer can choose from several great deals. Many Platinum credit cards for example offer you fantastic reward deals, offers to hard-to-get tickets, travel insurance, a personalised assistance service and much more.
To say one is better than the other would be an outright lie until you shop around. Every single bank offers you a different deal on their Visa cards and on their MasterCard cards. This means that is you have a Visa from both Westpac and ANZ for example, chances are they are both entirely different.
The war between card providers is often won by their offers on the high-end market. if customers see value their are more inclined to choose one card above the other. Having said this, many consumers carry one of each in their wallets just to make sure.
At the end of the day you have to decide which offer is best suited to your lifestyle and your needs. It certainly doesn’t hurt to have a Visa and a MasterCard to be covered for most occasions but not everyone can afford two cards and if you can’t, then choose wisely.
Pay attention to the small print
To get the best deal on your credit card you should look at the small print in the terms of credit card providers. Look at interest rates, annual fees, reward offers, etc.
If you are on a home loan package with your bank you have a high chance of getting your card free of charge.
To finish off, there is no real advantage to either card, both VISA and MasterCard can be the better credit card for you depending who issues it.
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