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When I worked as the office manager for a sea kayaking company, I took a lot of reservations over the phone. Each time, I had to get the client’s credit card number. I’d always start by asking what type of card he or she had, until eventually I noticed a pattern.
If the card number started with 4, it was a Visa; with 5, it was a Mastercard; with 3, it was an American Express.
That observation only led to more questions: Besides the numbers they start with, what’s the difference between Visa and Mastercard? Which is better: Visa or Mastercard? At long last, I decided to dive into the topic — here’s what I learned.
Although it’s a common misconception, Visa and Mastercard do not issue credit cards — you wouldn’t, for example, send Visa an application to get approved for a credit card.
That’s why, even if you get a card from your bank, it’ll still have a Visa or Mastercard logo in the bottom corner. Your bank is the one loaning you the money, in the case of credit cards, but Visa or Mastercard is the one transmitting the information that makes your payment go through.
Visa and Mastercard are the largest payment networks in the world. In the United States in 2017, Visa cards accounted for a whopping 53% of credit purchase volume, according to The Nilson Report, followed by Mastercard (22%), American Express (21%), and Discover (4%).
So what is the difference between Visa and Mastercard? For the everyday user, not a whole lot.
Both types of cards are accepted widely around the globe, at tens of millions of merchants and in more than 200 countries. On rare occasions, certain merchants will strike deals with certain networks: The most famous U.S. example is Costco, which only accepts Visa cards.
In 2016, Visa accounted for $139 billion of worldwide purchase transactions, trailed by Mastercard with $67.3 billion. Since American Express and Discover aren’t accepted as widely, they only accounted for a fraction of that: $7.2 and $2.3 billion, respectively.
Here’s what Mastercard and Visa have in common:
Here’s where you might find slight differences between Visa and Mastercard:
Generally speaking, you’ll find more co-branded Visa cards — with airlines and hotels, for example — and more secured Mastercards, for people with limited or poor credit. But when it comes down to the nuts and bolts, we wouldn’t say there are make-or-break differences between Visas and Mastercards.
So, rather than focusing on the network, we’d recommend focusing on the perks and benefits that each specific card offers. Look for low or no annual fees, high-quality customer service, and easy-to-use rewards.
Here are some of our favorite credit cards that run on the Visa or Mastercard networks.
|Limited credit||Petal Cash Back Visa® Card||Journey® Student Rewards from Capital One® (Review)|
|Cash back||Chase Freedom® (Review)||Citi® Double Cash Card - 18 month BT offer (Review)|
|Travel or dining||Chase Sapphire Preferred® Card (Review)||Capital One® SavorOne® Cash Rewards Credit Card (Review)|
|High-end travel rewards||Chase Sapphire Reserve® (Review)||Citi Prestige® Card (Review)|
This unique (and sleek!) Visa card is great for brand-new credit users because it’s possible to get approved without established credit history. Combined with a lack of fees, and a rewards system that incentivizes responsible card use, it’s a solid choice for a first credit card.
Despite the name, you can get this intro-level credit card even if you’re not a student. We love that this Mastercard offers cash back rewards, a bonus for on-time payments, and most importantly, a straightforward route to a higher credit line.
Do you get a thrill out of getting a good deal? Then this card might be right for you. Every quarter, you’ll register to earn a stellar 5% cash back on your first $1,500 of purchases in rotating bonus categories. Recent categories included gas stations, tolls, and drugstores (Q1 2019) and grocery and home improvement stores (Q2 2019).
If you’re not interested in rotating categories — and just want easy-to-earn cash back — this is one of the simplest rewards cards to use. You’ll get 2% cash back on everything; no need to sign up, and no need to track categories. With no annual fee and a 0% introductory APR for 18 months on Balance Transfers, it might be our favorite cash back card ever.
This is one of the best Visa credit cards for travel fanatics. Not only does it earn valuable UR points, which can be transferred to more than a dozen different airline and hotel partners at a 1:1 ratio, but it also comes with a slew of perks, such as primary car rental insurance and lost baggage protection.
This card is a fun choice (and a fun color!). Aimed at foodies, it earns 3% cash back on dining and entertainment, and 2% at grocery stores. Whereas most cards are made for either restaurants or groceries, we like that this card offers solid rewards for both. Compounded with the fact it has no annual fee and no foreign transaction fees, this is a snappy option for anyone who loves living the good life.
This card is one of a handful of Visa Infinite cards available to Americans — and its exclusivity shows in its rewards and perks. If you have the credit needed to qualify for this card, and travel enough to warrant its annual fee, then the Reserve is a killer choice.
This high-end card is quite similar to the Reserve, albeit with a higher annual fee and smaller travel credit. Depending on your travel style, that difference might be offset by the fourth night free you’ll get when booking eligible hotel stays with the card. Capped at twice per year. All in all, the Prestige is worth a look, especially when considering it employs Mastercard’s superior exchange rate.
While the cards above are a selection of our favorite Visas and Mastercards, they’re just the tip of the iceberg. If you didn’t see a card that fits your needs, check out the best cards for rebuilding credit, the best cards for balance transfers, and the best cards for gas and groceries.
And remember: Though you’ll see some small differences when it comes to Visa vs. Mastercard, it’s fees, rewards, and responsible credit behavior that matter far more.
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