What is the difference between VISA and Mastercard?

If you open your wallet and take out a credit card, then there is a high probability that it is issued by either Show or MasterCard.

There are also other cards issued by e.g. American Express or Diners. However, it is a little more unusual for these to be accepted by regular merchants, as their transaction fees are often higher than for cards issued by Visa and Mastercard.

Show

Visa as a brand was founded in 1970 and is owned by an American publicly traded company - Visa Inc.

Like Mastercard, Visa does not issue its cards directly to the final consumer, but instead partners with card institutions and banks who in turn deliver the cards to the recipient.

Visa Electron

Visa Electron is a simple card that requires coverage on the account in order to make purchases. As with Mastercard's counterpart, Maestro, it is not possible to make purchases offline. Visa Electron must always be connected to the bank in order for the card to work.

Credit cards

Visa also has credit cards, both for individuals and companies. Then all purchases made are compiled on an invoice that is later sent to the cardholder once a month. Not only does Visa have a credit card solution, but there are a plethora of different variants and options.

MasterCard

Founded in 1966, Mastercard Inc. is an American company. As with Visa, Mastercard does not issue any cards directly to the user, but it is always someone who acts as an intermediary between Mastercard/Visa as the issuer and the end customer. Mastercard and Visa cover virtually the entire world and are a secure way to manage your payments.

Mastercard Debit

Debit Mastercard is a credit card that is linked to a bank account. When making a purchase on the card, the money is deducted directly from the linked account.

Maestro

A card with the functions provided by Maestro means that you always have to be connected to the bank in order to make a purchase. Just like with a Visa Electron card. Therefore, you cannot trade with a Mastercard Mestro or Visa Electron from certain flights, below ground level or other locations where coverage may be poor.

Credit cards

A “regular” Mastercard is a credit card that receives all purchases collected on an invoice and sent home to the cardholder once a month. After that, the cardholder can decide whether to pay the full amount at once or choose to pay the invoice in part.

One advantage that many people see with these credit cards is that it often comes with some kind of benefit, in the form of points system, access to lounges when traveling or insurance. It is not Mastercard itself that solves these, but those conditions may differ between card issuers and their different cards. Many use different levels, often related to the credit limit or the amount one spends.

What is the difference between Visa and Mastercard?

It can be hard to see any real differences between Mastercard and Visa. The general differences between Visa and Mastercard are:

• Mastercard has slightly better coverage internationally and is accepted overall by more merchants than Visa.
• Visa prohibits merchants from charging an additional fee when purchases are made with a Visa card. This is common for cards from American Express and Diners in Sweden, where some merchants have decided to charge an additional fee for purchases with these cards.
• Visa also prohibits merchants from having a minimum amount for card purchases, which can affect kiosks, grocery stores and other businesses where you can buy cheap products in pieces.
• Mastercard has a slightly better exchange rate than Visa. However, it is so marginal that it is more important for you as a cardholder to keep track of the currency deposit placed by the card institution or bank.

Fees and insurance from Visa and Mastercard

Fees such as monthly and annual fees can vary enormously between Visa, Mastercard and the respective card issuer. Thus, it is not Visa or Mastercard that sets these fees and sometimes even hidden costs, but it is the card issuer who does it.

However, there are a number of different services offered directly from Visa and Mastercard's product portfolio.

For example, Mastercard can offer cancellation and fraud protection, while Visa has travel insurance attached to its cards. Visa also has delayed baggage allowance and a range of other travel and stay-related offers that make many people who travel a lot use a Visa card.

Therefore, look at your needs. If you are someone who travels a lot, it is common that any card issued by Visa can suit you particularly well.

Apple Pay and Google Pay

Both VISA and Mastercard cards can support Apple Pay and Google Pay. It is up to the company that issues the card whether to find it as a function for that particular card or not. Qred's corporate card supports both Apple Pay and Google Pay.

Is Mastercard or Visa the best?

It is not the very producer of the card itself, i.e. Visa or Mastercard, that will be the tongue of the scale for you as a cardholder. It is the bank or institution that provides the actual final product of the card.

But wait, now it just got harder to choose the right one?

Well, not really. We have actually compared Sweden's best business cards for entrepreneurs so that you can choose which cards suit you best. Or you simply apply for one company card from Qred already now!