VISA or MasterCard?

The vast majority of payment bank cards in use in the world are serviced by the international VISA or MasterCard systems. Often users do not understand the differences between them. Moreover, they are not even aware of these differences. Meanwhile, in certain situations one or another payment system may be preferable.
What’s the difference?

Although both transnational financial corporations were formed in the US and their headquarters are located there, the main difference between these payment systems is in the base currency. For VISA it is American dollars (USD), for MasterCard – both dollars and euros (EUR), depending on the place of use.

Accordingly, choosing between the two payment systems, should be based on where you will use the card. This point is especially relevant for those who travel a lot or often make business trips.

Differences in the use of cards:

– If you have a plastic card with a ruble account (RUB), you come to one of the European Union countries. All purchases, respectively, you pay in euros. When you pay with MasterCard, the conversion is made RUB→EUR. But if you pay with a VISA card, the scheme is more complicated: RUB→USD→EUR. Obviously, in this situation it is more advantageous to have a MasterCard.

– The card account in EUR was opened in one EU country, while the card is used to pay in another. When using VISA, in this case conversion EUR→USD→EUR takes place, while with MasterCard there will be no conversion at all (if EUR is selected as the base currency).

– A resident of Warsaw, having a card account in Polish zloty (PLN), pays for a purchase in Prague, in Czech crowns (CZK). With a MasterCard, the payment is made with an intermediate conversion to euros: PLN→EUR→CZK. But with a VISA card, the conversion might be either double – PLN→USD→CZK – or triple: PLN→USD→EUR→CZK. The reason for this may be the need to use euro for settlements within the European Union.

– A citizen of the United States travels within the country. Here it is definitely better to use VISA, there would be no conversion at all. With MasterCard, however, purchases will be more expensive because of the conversion of USD→EUR→USD.

VISA and MasterCard prevalence
If we look at the figures, we can see that the popularity and prevalence of cards of both payment systems in the world are about the same:

  1. VISA cards are accepted in 200 countries of the world, MasterCard – in 210 (hereinafter the first figure for VISA, the second for MasterCard);
  2. 29% and 16% of all payment cards issued in the world;
  3. 80 and 100 bank-partners in Russia, the share on the national market – 39,5% and 36%;
  4. Number of points of sale connected to the system – more than 20 million and more than 30 million.
    Which card to choose?
  • For those who open an account and plan to move around Europe or visit Africa, MasterCard will be more advantageous. The commission of the payment system will be significantly lower due to the lack of conversion in USD.
  • Opening an account in an American bank and traveling throughout the United States, as well as planning to travel to Canada, Southeast Asia, South America or Australia, it is more advantageous to choose VISA.
  • Citizens of Russia, Ukraine, Kazakhstan, Belarus and other post-Soviet countries who open the account in local currency and plan to use the card for payments within the country might not pay attention to the difference between these payment systems. Here, other conditions and offers may be the criteria for selection:
    – Cashback;
  • – Discounts in partner stores and retail chains;
  • – Bonus systems;
  • – The ability to issue a personal card or a card with your own design, etc.
  • Also banks can make personalized offers, “elite plastic” with access to VIP services.

    Payment card types

Pay attention also to the standard offerings of payment card lines, which are set based on activity and status:

Entry-level debit cards:

– Visa Electron;

– Mastercard Standard.

Classic cards:

– Visa Classic.

Premium cards:

– Visa (Gold, Platinum);

– MasterCard (Gold, Platinum).

Special offers:

– Visa (Infinite, Signature);

– MasterCard (World, World Elite, World Black Edition).

To use the card inside the country the choice should be made not so much by the payment system, but by the bank’s commercial offers and the set of services offered. If you open an account in a foreign bank, then in the first place are such criteria as loyalty to non-resident clients and the cost of services.

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