You're forgetting to mention that worldwide, the Visa card is accepted in roughly twice as many businesses than MasterCard and that makes it the biggest difference of all between the two. I was very upset when my bank suddenly switched from Visa to MasterCard. that's when I started getting problems. I have nothing against either company but when I start getting issues where businesses don't accept MasterCard then that's a red flag for me. I'm changing bank for this.
I'm going to piggy back you here because I use to work for two banks that used VISA, Mastercard, and Discover. 99% of travel credit cards, use Visa, because of the acceptance rate. Visa also gives you tier protection depending on your credit limit as well. (for example, one friend has a travel card with 3k limit and they have standard Visa benefits, where my other friend has a 20k limit and they have top tier benefits.) Visa is accepted about 2% more places then Mastercard is. Mastercard packs amazing perks and benefits that Visa does not match. (to my understanding) However, the 2% margin of acceptance is shrinking, making its almost the same. Visa also markets their brand and has been marketing their brand stronger then Mastercard given them a HUGE foot print and now Mastercard is trying to make up for it by partnering with more and more banks to close the gap. DO NOT BE SURPRISED if you replace your card and then suddenly see Mastercard in the corner and not Visa. In the US, Canada, and most a Mexico Mastercard is perfectly fine. Over seas you should carry a Visa card with you just incase.
Visa was a sponsor of the FIFA World Cup last year and it was the only accepted card there. Apart from these perks, they are mostly the same so it is better to have both. But the best credit card network in my opinion is American Express. It is both an issuer and a card network but not accepted everywhere.
If you don't travel out of your own country, it does not matter what credit card you have. For the frequent traveler, it is wise to have all four (MasterCard, Visa, Discover and Amex). There are places/events that only accept one type of card because that particular event is sponsored by that card issuer.
I agree that in general there's little difference between Visa and MasterCard. Some exceptions might be where each is accepted. The real difference is in the tiers and the issuing bank. For instance, the perks on my Chase Sapphire Reserve Visa Infinite card are vastly better than a Visa Signature card. And I found out recently that MasterCard World Elite cards will get new perks including cell phone insurance soon.
In my country, Tanzania, visa card is used in the specific bank ATM but MasterCard can be used in any bank ATM. TO us that is the big difference between the two.
It would be interesting to know more about the origins of these cards. I think Visa used to be the Bank of Americard (sp?) and Matercard used to be MasterCharge (not sure what bank(s) were the first to issue Mastercards.) Anyway, as others have said it's good to have both. Some merchants/venues only take one or the other and the perks can vary. Another thing are the perks with VISA Classic, VISA Signature, and Visa Infinite. Also the perks with Mastercard Gold, Platinum, World and World Elite.
There is no major difference between to the two for the consumer. The differences between the two will affect the merchant because as stated in the video, they are charged a fee per swipe. The main time there's a difference as a consumer is when traveling internationally.
Having both may be a plus because u should consider that all merchants do not except a master card (credit) for example, Costco is one of those merchants. They have a contract with visa & because of it a visa credit card is the only form of credit they will accept.
Good Job, Ryan ...NOTE: The Smith's grocery store in my neighborhood announced last month that they will not be taking VISA anymore ...the employees say that their 'FEES' are prohibitive and bordering on 'usury'
Oldschool method, i kind of prefer it too, cause it makes me remember stuff better, than from reading off a screen, cause while you write it down it kind of gets imprinted in your memory. ;-)
For the consumer the difference between Visa abs MasterCard is there’s more MasterCards that are available with no annual fee. Only the Entry level Visa cards are no annual fee while only upper level MasterCards charge an annual fee.
MasterCard has a better network when in a foreign country. Sometimes the visa card network fails while the MasterCard network is successful in completing transactions
Agreed. I just found a restaurant in the Netherlands where they only accepted mastercard and no visa... So for international travelers it's best to have both.
There's the beginnings of a class action lawsuit in the UK regarding high merchant fees, which are passed on to the customer by the high price of goods and services. If the outcome is in favour of the consumer, anyone who's bought something in the last few years in the UK could be entitled to a windfall some of about £300.
Wealthbuilderz TV The difference with Discover is they don’t rely on an outside bank. They are lending money directly. Amex is the same but it has a MUCH better head start.
I think the comparison should be between Visa/Mastercard v. American Express. Visa/Mastercard thrive in environments of huge transaction volume as they make a recurring revenue through a transaction fee based off of those transactions. American Express on the other hand does not most usually involve a fourth party in the form of a bank. But due to AmEx having to foot credit risk unlike Visa/Mastercard their fees charged to merchants are higher thus AmEx not being accepted as readily as profit strapped businesses. In the end Visa/Mastercard business model is very profitable thus the valuation in both Visa/Mastercard being around 30+times earnings meanwhile banks like Bank of America JPM trading south of 15 and American Express thereabouts as well. Visa and Mastercard are pipelines that will thrive when the consumer is healthy and they unlike issuers of cards don't foot credit risk hence the premium valuations! Sorry for rant but looked into this myself as well.
In Australia they’re both accepted equally and I have both and literally there is no difference. Also- we have way more banks than America. Bankwest (my bank), commonwealth banks, nab, westpac, anz, bank of Queensland, st George, Bendigo bank, I could go on, there’s so many more
For me the difference is that visa is my money or wht ever u have in ur bank and,, and Mastercard is my credit cards so visa is debit card and Mastercard is creditcard , ,, thats how i see it
Visa and Mastercard are payment companies, im glad he clarified that a couple of minutes in but he called them credit card companies in the beginning which is not true. Additionally, visa and mc dont make money off the merchant at all, they make money off of the bank for processing their transaction and for connecting a merchant’s bank to the cardholder’s bank, ppl need to get more informed before they start making videos...
the banks are the ones that make money off of the merchant, lets say u buy something worth a $100 at home depot, home depot has a bank that gave them a pos device that allows them to accept cards, for providing them w that service said bank charges home depot a merchant discount rate of 3% (negotiable across markets, this is just an example) off of that 3% said bank then transfers over 1.5% over to the cardholders bank, this is called interchange and its necessary bc the merchant bank isnt going to be providing pos’s for free and the issuing bank wont be motivated to issue cards without getting something back in return, in this case the merchant is being benefitted and willing to pay this fee because they can have the ability to accept payment from anyone around the world. Visa is the brand that connects the merchant bank to the cardholders bank, without them none of this would be possible, and visa will end up charging small fees to both the merchant bank and the cardholder’s bank for providing them with this service.
Hello, you mentioned in video about special perk and reward, connected with banks and merchants, which has nothing to do with Visa or MasterCard. But what about Visa Offers program? It IS connected with Visa
Great video! Always interesting to learn about these companies. You should consider Visa as a company to invest in, as it is an excellent (and safe) company which should rise from the increasing e-commerce dominance ;)
In Australia there is virtually no difference between Visa or Mastercard. Visa does have a slightly bigger world wide market share, but for average everyday consumers that makes no difference to us. I do have to mention that American Express in Australia is not as widely accepted as Visa and Mastercard.
I just applied for a classic mastercard. The Bank employee told me they will only charge me $5 a year for the service. Is that true ? OR I have to pay for stuff ? I don't want interests. I just want a card where I can shop online or when I travel etc. What do you suggest guys ?
Cryptocurrency are better, you have, bank-network-money, all in the same decentralized system. Well, is is better to use it for trading and as storage of value, because it is difficult to find who accept it.
