Visa vs Mastercard – Which is Better for Online Shopping
In the digital age, online shopping has become necessary, and choosing a suitable payment method is not just important; it’s crucial. This is also why many assess Visa vs Mastercard, both of which connect your bank to merchants, ensuring smooth and secure payment.
Banks and NBFCs collaborate with these payment networks to offer credit cards. As two of the most popular options, these payment networks offer many perks that add more value to your payment.
To choose the better of the two, you must understand how they work and what sets them apart.
Explaining the Visa Card and Mastercard
Both of these are payment networks that allow you to transfer funds from your account to a beneficiary account. Mastercard is the world’s second-largest payment network after Visa. However, not all merchants accept all payment networks, which affects your payment experience.
It is crucial to remember that these companies do not issue the cards. Instead, financial institutions collaborate with them to offer a card. Commonly issued cards by these networks are:
- Credit cards
- Debit cards
- Secured credit cards
- Prepaid cards
How Do Visa and Mastercard Work
As mentioned, these are payment networks that allow you to complete transactions and transfer funds from one account to another. Here is how the process works:
- You use your card (Visa or Mastercard) to pay for the service or product
- The PoS will read the card and send the details to the merchant’s bank
- The bank will send the request to the payment network
- The payment network will pass the request to the issuer
- The issuer reviews the request and approves or rejects it
- The payment network relays the decision to the merchant bank
- The transaction amount will be deducted from the bank account in case of approval
- The transaction will fail if the issuing bank rejects the payment request
Key Similarities Between a Visa Card and a Mastercard
Since both are payment networks, there are common features and benefits that you get. Here is an overview of these similarities:
- Zero liability for fraud, so your finances are protected in the event of unauthorised payments
- Worldwide acceptance, so you can use these cards in 200+ countries and territories across the globe
- Robust security measures which ensure the best protection for your finances and identity
Differences Between a Visa Card and a Mastercard
Although the nature of these payment networks is similar, there is a significant difference between them. These distinctions are mainly in the benefits you get from them. Here is an overview of Visa vs Mastercard:
| Parameter | Visa Card | Mastercard |
| Service Fee | The issuer is charged on a per-transaction basis or card volume | The issuer is charged a percentage of the global dollar volume |
| Acceptance and Partnership | Globally accepted but has a slightly wider partnership | Globally accepted but lower than Visa |
| Contactless Technology | payWave to facilitate contactless payments | PayPass to ensure seamless no-contact payments |
| Card Levels | Comes in five tiers:ClassicGoldPlatinumSignatureInfinite | Comes in four tiers:StandardPlatinumWorldWorld Elite |
| Benefits | Emergency roadside dispatchExtended warranty on specific purchased itemsCollision damage waivers on auto rentalsPriority Pass lounge access | ID theft protectionGlobal service hotlineFree membership on select servicesMastercard Hotel Stay GuaranteeLowest hotel rate guarantee |
How to Choose Between Visa and Mastercard
There are very few differences between Mastercard and Visa cards, but you can assess exclusive benefits offered by each network to choose the right one. For instance, Visa offers discounts and benefits at 900+ locations, whereas Mastercard gives you access to 3,000 properties across the world.
As such, you need not focus on Visa vs Mastercard when choosing a credit card. Instead, you must focus on credit card issuers. The majority of the benefits you receive depend on the issuer. For instance, some may offer 2X rewards on online transactions, but some may offer 3X.
Apart from this, here are a few other points to consider while choosing from Visa vs Mastercard for online shopping:
- Acceptance
- Security measures
- Payment perks
- Fees and charges
All in all, you need to compare the credit card features and categories to choose the right option. If you are looking for an online shopping credit card, apply for one with the most lucrative benefits.
With global acceptance, solid security features, and dependable customer service, the One Credit Card is an ideal credit card for online purchases. It offers up to 5X rewards on your top two spending categories. Given this, it can be the credit card with best dining rewards or shopping rewards.
The reward points also don’t have a validity period or redemption charges, making it an outstanding choice. You also don’t have to worry about fees or charges, as the card is a lifetime-free card with no annual or renewal charges. Apply online now to receive all of the perks at your doorstep.
