Visa and Mastercard are two of the most popular card networks, together making up over 80% of credit cards in circulation in the U.S. But which offers the best credit card option?
Both cards are accepted globally and offer very similar capabilities. As a result, many commentators joke that the only real difference between the two is the logo.
In this post, we’re going to provide overviews of both Mastercard and Visa and outline the similarities and differences between both card networks—and the role that financial institutions play in deciding their features and perks.
TL;DR
- Visa and Mastercard are the world’s two largest payment networks, offering a range of prepaid, credit, and debit card options.
- Thanks to their revenue structure and global presence, Visa and Mastercard are extremely similar in how they operate and there is little discernable difference to the cardholder.
- The main differences between Mastercard and Visa cards are not due to the card companies themselves, but the financial institutions that issue the cards and set the interest rates and fees.
Overview of Mastercard
Mastercard was created by a consortium of banks in 1966 in an effort to compete more effectively with Visa, which at the time had a virtual monopoly on payment processing. Until its initial public offering (IPO) in 2006, Mastercard was under the cooperative ownership of over 25,000 financial institutions, which also issued its cards to consumers.
Now a global payment technology platform, Mastercard brands prepaid, debit, and credit cards in addition to offering a range of business and finance services globally.
Because Mastercard is not in charge of issuing its cards, it doesn’t make money via cardholder activity. Instead, it earns revenue from charging banks a fee to issue cards and process payments, which is also known as an interchange fee or ‘swipe’ fee. Mastercard also takes a fee during different steps of the payment process, such as when the issuer authorizes a transaction or when funds settle in an account.
Overview of Visa
Visa is the second-largest credit card network globally and commands 50% of total card payments, behind only China’s UnionPay which surpassed it in 2015. There are currently 3.9 billion Visa-branded cards currently in circulation worldwide, which are issued by nearly 15,000 financial institutions.
Originally founded by Bank of America in 1958, the program was expanded by licensing this payment technology to other financial institutions, eventually breaking off and becoming the independent financial services corporation we know today. In addition to prepaid, debit, and credit cards, Visa also offers a full suite of financial services, including ATMs, retail partnerships, theft protection, business analytics, and more.
Like Mastercard, Visa earns revenue by charging the card issuer a fee in order to process transactions using its branded cards, which are usually passed to the merchants accepting Visa payments.
What are the Similarities Between Visa and Mastercard?
The Visa and Mastercard symbols are ubiquitous at checkouts across the world. So, what do these two major payment processing networks have in common?
Neither card network sets the terms and conditions of use
Unlike American Express, neither Visa nor Mastercard are in the charge of issuing or distributing their own debit and credit cards. Instead, both companies license card issuing rights and provide the technology for banks to process credit card payments made between customers and merchants.
Managing Mastercard and Visa cards is the responsibility of financial institutions, such as banks or credit unions. They act as debit and credit card issuers and are responsible for determining transaction fees and what rewards programs cardholders are eligible for.
This means a Visa credit card which as been issued by Bank of America may have quite different interest rates or payment terms than a Visa card offered by Chase. An Amex card, by comparison, is issued directly by American Express, which also decides annual fees and internet rates.
Near universal acceptance worldwide
Both Visa and Mastercard credit cards are accepted almost anywhere, as the world’s most extensive global card networks. If a store or online merchant shows the Visa or Mastercard symbols are their checkout, they must accept all cards that belong to the Visa or Mastercard network, no matter who the issuing bank is and what country the card originates from. This makes both card brands very reliable options when traveling abroad.
Fees & reward tiers
As previously stated, the banks that issue cards under the Visa and Mastercard brands are responsible for deciding what fee structures and benefits they want to offer. However, most card offers fall into one of four categories:
Low-fee credit cards. These cards come with fewer perks, but typically offer the lowest fees and interest rates, as well as greater flexibility in the form of balance transfers and adjustable repayment conditions.
Premium credit cards. Premium cards boast the highest credit limits and annual fees, but also come with some of the best perks, such as concierge services, extended warranties, or rental cars, just to name a few.
Rewards credit cards. This is the best option for consumers who want to earn cashback or loyalty points on their everyday spendings, such as groceries or utility bills.
Frequent flyer credit cards. Travel-based cards allow cardholders to earn points that they can redeem on flights or travel rewards, usually with an airline that the bank partners with. Frequent flyer cards also offer associated benefits, such as travel insurance, lost luggage reimbursement, or emergency assistance.
Mastercard offers four different card tiers with escalating benefits: Standard & Gold Mastercard, Titanium & Platinum Mastercard, World Mastercard, and World Elite Mastercard.
Visa, meanwhile, offers three: Visa Traditional, Visa Signature, and Visa Infinite. The specifics of these cards will vary depending on the bank that’s responsible for issuing them but generally include very similar benefits.
Security features
Visa and Mastercard both offer a range of security benefits. This is thanks to federal regulations and growing competition within the marketplace, which has helped make these features standard. They include:
Purchase protection. If your card details are involved in an unauthorized or fraudulent purchase, both Visa and Mastercard will cover the most of issuing chargebacks once they are reported to the issuing bank. Mastercard offers purchase protection for all of its cards, but the most generous policy is reserved for the World and World Elite Mastercard options. Visa also offers additional options in the form of trip cancellation or interruption.
Cell phone protection. Cell phone insurance to protect customers in the case of breakage or theft is a common offering by credit companies, including Citi and Chase in addition to Visa and Mastercard. World Mastercard offers cardholders $1,000 in annual coverage, while Visa Signature members get cell phone protection for one calendar month each time they pay their wireless bill using their Visa card.
Digital Payment Options
With the rise of mobile and contactless payments, both Visa and Mastercard have expanded their payment offerings beyond card transactions to adapt to changing consumer habits. Mastercard offers Tap & Go Payments, a parallel to Visa’s Contactless Indicator cards. Both card companies have also expanded their digital offerings across Apple Pay, Google Pay, and Samsung Pay mobile wallet features.
What is the Difference Between Mastercard and Visa?
Mastercard and Visa have extremely similar offerings, being both payment processors and offering licensed card offerings. However, there are areas where the card companies differ:
They operate on different payment networks
The biggest (and most obvious) difference between Visa and Mastercard is that they operate on totally separate payment networks.
While a bank might issue both Visa and Mastercard branded cards, they are processed using different systems. This means that a cardholder cannot use a Visa card at a merchant that only offers Mastercard and vice versa. Over the years, this has led to both card companies pursuing exclusive partnerships with retailers in an effort to gain market share. Costco Wholesale, for example, only accepts Visa cards.
Rewards and benefits
Although the overarching structure of its card tiers is the same, Visa offers slightly more benefits for its lower-level credit cards than Mastercard does, which reserves the best perks for its premium cards. This being said, most of the standard features, such as price protection and warranty protection, are fairly comparable between card companies.
They have different fee structures
Although both Visa and Mastercard earn the majority of their revenue through payment processing fees, how they go about doing this is slightly different. Visa charges data processing fees to the card issuer on a per-transaction basis, while Mastercard charges issuing banks connectivity fees to use the Mastercard network itself during different stages of the payment processing workflow. Since financial institutions usually charge an annual fee to cardholders, their experience is very similar.
Visa and Mastercard: Business and Commercial Card Offerings
While most people associate Visa and Mastercard with consumer credit cards, both networks also play a significant role in the business and commercial card space. From small business credit cards to large-scale corporate expense management solutions, these card networks provide the infrastructure that financial institutions use to serve business customers.
Types of business cards offered
Visa and Mastercard both support a range of commercial card programs, which are ultimately issued by banks or financial institutions. These include:
- Small business credit cards. Designed for entrepreneurs and SMBs, these cards typically come with cash-back or points-based rewards, expense tracking tools, and integration options for accounting platforms.
- Corporate cards. Often used by large organizations to manage employee expenses, these cards may include detailed reporting tools, controls on spending categories, and centralized billing.
- Purchasing cards (P-cards). Used for procurement and recurring business expenses. P-cards simplify the accounts payable process by reducing the need for purchase orders and invoices.
- Fleet cards. These cards are tailored for businesses that manage vehicle fleets. These help monitor fuel purchases, track mileage, and limit unauthorized spending.
Key similarities between Visa and Mastercard business cards
- Security and fraud controls: Business card programs may come with protections like zero liability policies, real-time alerts, and spending controls.
- Global acceptance: Like their consumer counterparts, Visa and Mastercard business cards are accepted nearly everywhere, making them ideal for international business travel or remote teams.
What makes them different?
The biggest differences aren’t between Visa and Mastercard themselves, but between individual issuers. For example, a Visa Business card from Chase may offer very different rewards and benefits than a Mastercard Business card from Capital One. Issuers choose which network to partner with based on compatibility, pricing, and support needs—and then layer on their own perks.
Ultimately, when evaluating a business card, it’s more important to compare issuing banks and their specific offers than to weigh Visa against Mastercard alone.
What’s next for Visa and Mastercard?
As commerce evolves, Visa and Mastercard are doubling down on technology to make payments smarter and more seamless. Here’s a snapshot of what’s next in the world of card networks.
AI-powered commerce
Going beyond protection, Mastercard introduced Agentic Token and Mastercard Agent Pay, systems built for autonomous or “agentic” commerce. With this capability, AI agents can execute tasks and transactions (like booking and buying) on behalf of the user.
As Mastercard writes on Business Insider:
Mastercard is taking a proactive stance in shaping the infrastructure that will support agentic commerce. Through our newly launched Mastercard Agent Pay, we’re integrating the power of tokenization into this new technology, enabling AI agents to transact securely, with human authorization and authentication embedded from the outset.
Visa is also exploring the next frontier, enabling trusted AI agents to make purchases for users. Pilots are underway with partners like OpenAI, Microsoft, Anthropic, Stripe, and Samsung, with a wider rollout anticipated in 2026.
“Soon people will have AI agents browse, select, purchase and manage on their behalf,” says Visa’s Chief Product and Strategy Officer Jack Forestell in a press release. “These agents will need to be trusted with payments, not only by users, but by banks and sellers as well.”
He continues, “Just like the shift from physical shopping to online, and from online to mobile, Visa is setting a new standard for a new era of commerce.”
One Credential, Many Uses
Both networks are honing “credential” technologies that consolidate multiple payment sources—debit, credit, prepaid, rewards points—into a single toggle-able token.
Visa’s Flexible Credential, piloted in Japan, lets users switch between funding sources and is being explored for business applications and multi-currency payments. Meanwhile, Mastercard has OneCredential, offering “a single, digitally connected credential offers consumers a choice of multiple payment methods, configured to their specific preferences—all from the palm of their hand.”
Final Words
Visa and Mastercard may look nearly identical on the surface, but the real differentiators come from the banks behind each card. While both networks provide reliable, secure, and globally accepted payment options, your best credit card choice depends on the issuer’s terms, rewards, and perks. So instead of comparing logos, focus on the fine print. That’s where the real value lives.
FAQs about Visa and Mastercard
Q: What is the main difference between Visa and Mastercard?
The main and most obvious difference between Visa and Mastercard is that they operate on completely separate payment networks. While both offer globally accepted cards and a range of financial services, the specifics like interest rates, rewards, and fees are primarily set by the issuing banks or financial institutions and not by Visa or Mastercard themselves.
Q: Who issues Visa and Mastercard?
Visa and Mastercard themselves do not issue cards. They license the rights to issue cards and provide the technology for the payment process to financial institutions, like banks and credit unions. These institutions decide transaction fees, rewards programs, and other cardholder benefits.
Q: How do Visa and Mastercard make a profit?
Visa and Mastercard mainly earn revenue by charging the card issuer a fee to process transactions using its branded cards.
Q: Is Mastercard accepted more widely than Visa?
Both Visa and Mastercard are accepted widely around the globe, and the two networks have an almost identical global merchant acceptance. If a store or online merchant displays either the Visa or Mastercard symbol, they must accept any card that belongs to these networks, regardless of the issuing bank or the card’s country of origin.
Q: Do Visa and Mastercard provide the same benefits?
Yes, Visa and Mastercard offer many similar core benefits, including fraud protection, purchase security, and global acceptance.
Q: Which has better security features – Visa or Mastercard?
Both Visa and Mastercard offer a range of security benefits. They cover unauthorized or fraudulent purchases, offer cell phone insurance, and return protection, among other features. The specifics, however, may vary depending on the level of the card and the issuing bank.
Q: Which offers better rewards: Visa or Mastercard?
The rewards offered by Visa or Mastercard largely depend on the issuing bank. Although the types of rewards can vary greatly, they typically fall into four categories: low-fee credit cards, premium credit cards, rewards credit cards, and frequent flyer credit cards.
Q: Can I use my Visa card at a merchant that only accepts Mastercard and vice versa?
No, Visa and Mastercard operate on completely separate payment networks. A merchant that only accepts one cannot process transactions from the other.
Q: Which is better: Visa or Mastercard?
The choice between Visa and Mastercard depends largely on the individual’s specific needs and the offers from the issuing banks. Interest rates, fees, rewards, and the terms and conditions of credit card offers are typically determined by the issuing banks or financial institutions and not Visa or Mastercard themselves.
Q: What are some of the services provided by Visa and Mastercard?
Beyond card offerings, Visa and Mastercard offer services such as ATMs, retail partnerships, theft protection, business analytics, and more. They have also expanded into digital payment options, including mobile and contactless payments. However, the specifics can vary depending on the individual card and issuing institution.
