Visa or MasterCard: which is better and what are the differences. Which payment system card to choose - "VISA", "MasterCard" or "MIR"? What is better master or visa
The largest payment systems at the moment are MasterCard and Visa, where they account for about 26% payment cards of the world, and on Visa - 57% . MasterCard and Visa, as well as the differences between them, will be discussed today.
- VISA. Initially (from 1958 to 1976) Visa was called BankAmericard, but as it developed, it was necessary to change the name to a neutral one. There were many options for renaming, but the developers decided to call it Visa - in the translation "registration / visa / registration" and in 1976 the card was issued with a new logo.
- Payment system Interbank Card Association first appeared in USA in 1966, as a result of an agreement between several American banks. And only in 1979 it received the name by which it is known to the present moment - MasterCard Worldwide.
Visa | Electron |
classic | |
Gold | |
Platinum | |
Maestro | |
standard | |
Gold | |
Platinum |
Comparison of Visa Electron and MasterCard Maestro
Visa Electron and MasterCard Maestro are entry-level international cards that allow for a minimal fee (up to 200 rubles / year), and in some cases - for free ( depending on the bank chosen by the client), receive the necessary minimum range of services, including:
- Non-cash payments for goods and services;
- Non-cash money transfers without the help of an operator;
- Round-the-clock access to the account, with the possibility of its management;
Visa Electron and MasterCard Maestro are most often used as payroll and their main function is to store cash.
The functionality of Visa Electron and MasterCard Maestro cards is limited - for example, with MasterCard Maestro it is not possible to pay for orders via the Internet, while Visa Electron - the availability of this option depends on the bank that provides the card. But, even if the card function includes the ability to pay online, it is not recommended to do this, since it is quite difficult to protest the transactions and the money is credited to the seller's account immediately after the transaction is approved.
If we talk about the appearance of the cards, then they are not personalized ( nameless). In addition, there are no raised elements on the front side of the card indicating the card number ( it is applied by pressing), which limits their use in devices that require a card imprint.
Difference between Visa Classic and MasterCard Standard
Visa Classic and MasterCard Standard are universal cards that have a standard set of features. With the help of these cards it is possible to pay for purchases in stores or on the Internet. In addition, these cards can be used both on the territory of Russia and other countries. For most people, the features that these cards provide are enough - that's why they are the most common among the population. This segment includes debit and credit cards.
On average, the cost of annual maintenance of such cards is 300 rubles, which is an order of magnitude lower than Gold and Premium.
Comparison of MasterCard Gold and Visa Gold
MasterCard Gold and Visa Gold are primarily used to emphasize the status of their holder. Most often they are in demand by citizens who regularly travel abroad. The cost of annual maintenance is 3-5 thousand rubles, which is much more expensive than other types of cards.
Additional levels of protection, compared to other cards, are not provided for either MasterCard Gold or Visa Gold - despite the rather high cost. However, some banks offer cardholders specialized premium programs, as well as discounts and bonuses, for example:
- Opportunity to receive cash in subsidiary banks abroad without charging additional fees;
- Receiving discounts from bank partners when paying for: purchases, services in beauty salons, accommodation in hotels and inns, cafes and restaurants. In addition, it is possible to purchase travel vouchers from a bank partner with a discount of up to 5%;
- Invitations to various cultural VIP events and closed sales;
- The possibility of emergency cash receipt if the cardholder has lost it.
In addition, the price includes a standard set of services - Internet banking, SMS banking, SMS notification.
Difference between MasterCard Platinum and Visa Platinum
MasterCard Platinum and Visa Platinum are premium-class credit cards, just like Gold, they are primarily designed to emphasize the wealth of the owner. The cost of servicing the card averages from 5 to 10 thousand rubles per month. In addition to the status, the Platinum card gives its owner the following benefits:
- Exclusive service;
- Increased level of service around the world;
- Receiving discounts when using the services of bank partners;
- The ability to receive bonuses and make payments with them - including when buying tickets;
- Possibility of emergency cash withdrawal in case of loss of the card;
- Just like Gold, the ability to receive funds without paying additional fees;
In addition, the Platinum cardholder receives the maximum package of services from the bank itself, which includes:
- SMS banking,
- Internet banking,
- SMS notification.
In connection with the above, we can conclude that if the cardholder only needs to use it for purchases and its prestige is not important, then Visa Electron and MasterCard Maestro will be the most economical option.
If the client plans to use the card when making purchases not only in stores, but also via the Internet, as well as using Internet banking services, while not spending a large amount of money on servicing, then it is recommended to choose between Visa Classic and MasterCard Standard.
If we are talking about prestige and a large number of functions, then the choice should be stopped at MasterCard Platinum or Visa Platinum.
What to choose - Visa or MasterCard
There is an opinion that Visa is an American payment system, and MasterCard is European, but thanks to globalization, they have long become international. For understanding, both maps are American and their main headquarters are in the USA. The shares of these companies are also traded on the New York Stock Exchange:
In order to decide which of the presented systems is better, you need to consider the differences between them, as well as their pros and cons.
Security
When using a MasterCard payment system card, you need to enter a pin code in any case - regardless of the amount of the transaction, while when using Visa, when paying for small amounts, entering a pin code is not required.
Thus, the likelihood that unauthorized persons with MasterCard will be able to use it if the card is lost is much lower. Of course, for the majority of citizens, the security of their money plays an important role - that is why they prefer to use MasterCard.
In addition, when choosing a card, you should pay attention to the presence of chips and magnetic stripes on it - on which information about the card and its owner is encoded. A chip, unlike a magnetic stripe, contains much more information and is subjected to more complex encryption - which is why it is much more difficult to copy information from it. MasterCard Maestro and Visa Electron only have a magnetic strip, which makes them more vulnerable. But starting with Visa Classic and MasterCard Standard (in some cases MasterCard Gold and Visa Gold - depending on the bank), the cards are already equipped with a chip.
- By the way, you can - read how and where to do it in our separate article.
Free legal and medical assistance
Visa cardholders can benefit from free medical and legal assistance. But, it is important to know that not all banks in our country have the opportunity to offer their customers such privileges. That is why this issue needs to be clarified in the selected bank. MasterCard does not provide such an opportunity to its customers - regardless of the bank.
Place of use
One of the decisive roles when choosing a Visa or MasterCard is played by the place where it is planned to use the card:
- Visa makes it possible to make the necessary payments in dollars;
- With Mastercard, you can make payments not only in dollars, but also in euros.
When paying in rubles on the territory of the Russian Federation, the difference between these payment systems is of no fundamental importance. However, when traveling abroad, this difference becomes noticeable.
Examples of conversions in different countries:
Germany
In Germany, payment for purchases is made in EUR:
Visa: RUB - USD - EUR;
MasterCard: RUB - EUR;
In Germany, it is much more profitable to use MasterCard - 1 conversion.
France
In France, the account is in euros, purchases are also settled in euros.
Visa: EUR - USD - EUR;
MasterCard: RUB - EUR;
The example shows that in France it is also much more profitable to use MasterCard than Visa, since in the latter case the funds will be subject to double conversion.
USD account
MasterCard: USD - EUR - USD;
In the USA, unlike France and Germany, it is more profitable to use Visa, since there is no conversion.
From the above examples, we can conclude the following:
Using MasterCard in Europe is more profitable. When traveling to the USA, on the contrary, it will be much more expedient to use the Visa payment system, since it has one conversion - into dollars.
Tariffs
It is important to remember that the tariffs for using cards in each bank are different. That is why, before making the final choice, it is recommended to clarify the following information:
- The cost of issuing a card;
- Maintenance cost (per year);
- Cash withdrawal limit;
- Conversion fee;
- The amount of the commission for withdrawing cash from ATMs of your bank;
- The amount of commission for withdrawing cash from ATMs of other banks. Some banks have a partnership agreement with some banks when withdrawing money from which no commission is charged;
- The cost of issuing a new card in case of loss;
- The cost of connecting additional services.
Bonuses
Both MasterCard and Visa offer various discounts and bonuses to their customers, for example, cardholders Visa Electron And Visa Classic can receive the following discounts:
- online store PUMA 10%;
- network of fitness clubs "Planet Fitness" 35%;
- Litres 10%;
- network of entertainment centers "Planet Bowling" 20%;
- and others.
In addition, Visa Electron and Visa Classic holders can receive gifts and/or bonuses from the jewelry brand SUNLIGHT and GetTaxi.
MasterCard cardholders also have the opportunity to take advantage of the discount in the following companies:
- "Coffee House" 10%;
- Kinohod 10%;
- "Formula Kino" 10%;
- and others.
Also, customers of the MasterCard payment system can get a 50% discount on Wi-Fi on board the aircraft by paying for the service. Transaero Connect.
Instead of output
In connection with the foregoing, the following conclusion can be drawn - if you plan to use the card exclusively on the territory of Russia, then there is no financial difference, but when it comes to traveling abroad, it is important to take into account conversions and choose a card and a currency account with minimal conversions.
Do not forget about security - the MasterCard system pays more attention to this issue than Visa. But if the cardholderIf you care about the opportunity to use free legal and medical assistance, then only Visa can provide this type of service.
Which card to choose depends on your individual needs. It is important to remember that the functions provided, as well as the cost of servicing in different banks, are different - that is why, before making a final choice, it is recommended that you familiarize yourself with the offers of several credit institutions in order to choose the best option.
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Plastic cards have become an integral part of the life of modern Russians, with their help you can save a lot of time, since cashless payments are available. The credit line is becoming a real lifesaver for citizens experiencing financial difficulties. But most customers still do not understand how the Visa differs from the Mastercard of Sberbank and which card is better. There is no single answer to this question, since each product has its own advantages and disadvantages.
It was founded in 1968 by the American Bank. Visa accounts for 28% of the world market for the issuance of plastic cards. The main currency is the US dollar, so the conversion process is carried out through it. The service is used by more than thirty million outlets located in two hundred countries around the globe.
The IPU has gained the greatest popularity in North America, but in the Asian market Visa is not in great demand. All transactions carried out on the current account are verified through the 3DS security system. This utility was developed specifically for Visa. The corporation appeared in Russia in 1974. Among its partners are all the leading domestic banks.
General characteristics:
- the company serves more than one million ATMs worldwide;
- ½ of the global turnover of financial institutions passes through the system;
- the number of participants exceeded twenty thousand.
The main advantages of the payment system:
- card account management from anywhere in the world 24/7;
- the possibility of conducting transactions remotely;
- the presence of a universal currency that is suitable for any country;
- no commission fee when debiting funds (regardless of your location).
The main part of the working population of the country is a holder of Visa system debit cards.
MasterCard payment system
Mastercard also has its own characteristics. It was also organized in America in the late sixties. Initially, the purpose of creating a corporation was to unite all the banking structures of the country, to establish communication between them. The company covers a smaller plastics market than Visa, accounting for 25% of global turnover.
The system united more than twenty thousand organizations located in two hundred and ten countries. The main areas in which the company operates:
- issue of debit and credit plastic cards;
- making remote payments;
- servicing individuals and legal entities.
During the year, the corporation carries out more than twenty-five billion transactions. The number of users of the system in the Russian Federation exceeded 38%, Mastercard's rapid growth is due to cooperation with the Savings Bank. The service is most popular in the EU countries, China and Brazil. Least number of customers in North America.
Similarities and differences of payment systems
Visa and MasterCard of Sberbank occupy the first positions among all competitors, since their level of reliability does not raise doubts among consumers. The visa covers a larger number of users, but it also appeared on the market a little earlier. Mastercard is rapidly catching up with her. However, there are differences between systems.
Visa and Mastercard of Sberbank are almost identical in terms of consumer characteristics. According to the level of prestige, all credit cards are divided into those with ordinary, advanced and premium status. But to work with dollar and ruble accounts, Visa cards are mainly issued, and for euro and local currency - Master Card. However, such a division is conditional, since conversion is possible in each system. This process is different for them, but it has more to do with the specifics of the credit card industry.
The similarities between payment systems are as follows:
- high degree of transaction protection;
- three-year validity period of the card;
- availability of instant payments;
- support for three types of currencies;
- the identity of the annual service fee;
- full use outside of Russia.
There are no obvious differences between MPS. In technical terms, the systems are identical, this is confirmed by user reviews. You can only notice the difference in specific cases:
- when converting currency;
- when making payments online and through self-service devices;
- when receiving bonus privileges from partners;
- when operating plastic of different levels.
For example, Visa offers its clients legal advice and health insurance services. There is no such service in Mastercard.
Which card is better: Visa or MasterCard from Sberbank?
Savings Bank offers its customers a choice of three payment systems: Visa, MasterCard and MIR. The latter was created in 2014 at the initiative of the Central Bank of the Russian Federation. The service has options similar to American prototypes:
- deposits and withdrawals of cash;
- cashless payments;
- implementation of financial transactions.
True, there is a significant "but" - MIR can only be used on the territory of the Russian Federation. However, if you are not planning to go on a trip abroad, such a nuance can hardly be called a disadvantage.
Which card is better - Visa or Mastercard of Sberbank - it's up to you, the choice is most often based on personal preferences. Some generally lean towards a means of payment from PS MIR.
Sberbank products
A financial institution offers consumers several types of cards:
- Virtual;
- Platinum;
- golden;
- Electronic;
- Premium;
- Classic.
Plastic can be nominal and without identification information on the front side. An unnamed product (Maestro MasterCard and Visa Electron) is issued on the day the request is made. The advantage of an instant card is that there is no annual service fee. But there are some restrictions when making payments via the Internet.
Which card to choose for a trip abroad
When going abroad, it is important to consider that in the process of converting the service can use the rate of the Central Bank of Russia or its own. Plastic Visa and Mastercard are accepted in all countries. Two products can be issued at once, based on the following characteristics:
- cashback size;
- the cost of annual maintenance;
- commission for cashing out funds abroad.
Do not forget to check with the credit institution the size of the limit on transactions.
Let's go to Europe
Based on the reviews of tourists, we can conclude that in Europe it is more profitable to use Mastercard products. Since the main currency of the PS is the euro, you free yourself and your wallet from paying an additional commission when converting.
Gold and Platinum cardholders can get free legal or medical advice. In case of loss of plastic, reissue is carried out as soon as possible, you can withdraw the required amount at the bank's cash desk.
Travel to America
If you are a frequent visitor to the United States, it is better to issue a Visa card, since its conditional settlement currency is the dollar. Thus, the conversion will be carried out without additional commission. It will take ten days to make a personalized plastic, so make sure to submit a request in advance.
For trips to America, it is better to open a dollar account, in which case you will pay a commission fee only when money is credited. There is no additional charge for goods.
Output
When using cards on the territory of the Russian Federation, holders may not even understand how MasterCard plastic differs from Sberbank Visa. It is not the type of payment system that is important here, but the profitability of tariff plans. The difference is felt only in foreign trips, when you have to deal with the currency conversion procedure.
Visa and MasterCard - what is the difference for users. How do bank plastic cards work? Which card is better to take on a trip Visa or MasterCard? How do you pay for goods abroad using cards? In what currency is it better to choose a card?
Visa and MasterCard are two international payment systems (hereinafter referred to as MPS), which are most common throughout the world.
There are a number of misconceptions. First, Visa is an American system, MasterCard is a European one. It is not true. Both companies are headquartered in the US. Based on this information, many also mistakenly believe that in Europe it is better to pay with MasterCard, because this payment system is more common, and in America (North and South) Visa. Another popular misconception is that Visa's main currency for settlements with banks is the dollar, while MasterCard has the euro. Therefore, it is better to take MasterCard to Europe (to the euro zone), and Visa to America.
This is not true. It all depends on the particular bank that issues cards, its tariffs and terms of service. For you, the logo of which Visa or MasterCard payment system you have on your card may not matter at all.
How to pay by card abroad
Option 1. You are in any country in the world in which the national currency is not the euro or the dollar. For example in the Czech Republic. Therefore all prices are in CZK.
You have a plastic card in rubles.
You buy a T-shirt in the shop for 250 kroons. You give the seller your plastic card, the seller rolls it through the terminal, two seconds, the payment is made, the purchase is in your hands.
What happens in those two seconds.
1. Acquiring bank - a foreign bank that serves a point of sale receives information from the seller that 250 kroons must be debited from your card. The acquiring bank does not have access to your account, therefore, it sends the request for payment of exactly 250 kroons to the International Payment System (hereinafter referred to as the IPS).
2. The IPU also does not have access to your account, so it must tell your bank (called the issuing bank) how much to deduct from you. Your card issuing bank does not have a kroon account with the IPU, nor does it have accounts in many other currencies that exist in the world. With the issuing bank in the IPU, an account can be opened in euros or in dollars. Now almost all banks have accounts in several currencies. The IPU itself converts 250 CZK into the currency in which the issuing bank has an account. Let's say your bank account is in dollars. This conversion takes place at a fair, market rate. For example, the MasterCard exchange rate for some currencies can be viewed. We can say that the Ministry of Railways does not make extra charges and does not try to make money on it. Let it be 1 dollar = 25 crowns. Total $10.
3. Your issuing bank, having received the converted amount of $10, authorizes (blocks) the money on your card at its internal rate (assume 1 dollar = 62.5 rubles). Funds at this moment are not actually debited from the account. Funds are debited from the account, as a rule, within a few days (but maybe weeks) after the MPS makes settlements between the two banks. Here, at the rate that will be on the date of the actual write-off, the purchase operation will be processed. That is, you will have an exchange rate difference, which can be either up or down (the exchange rate has increased or fallen).
Pay attention and don't fall victim to the next scam.
Recently, the news often comes across information that some countries, such as Turkey, have offered Russian citizens to pay for purchases in rubles. Or in Finland, in some stores you can pay for the purchase in rubles.
In many countries, when paying with a card, sellers began to offer to make a transaction in rubles, and some are also offered in dollars or euros. It's cleverly called Dynamic Currency Conversion. So, you should always pay for the purchase with a card (and in cash too) only in the national currency - crowns, that means crowns, zlotys, let them be zlotys.
Refuse such chic offers and check what the seller enters on the terminal. The rate at which the amount will be converted to you will be 5-15% worse than the official one. Acquiring banks try to earn on additional commission income, encourage sellers to engage in such conversion operations, who also benefit from additional income. The rate at which the amount will be converted by the payment system will always be more profitable.
Plus, in addition, some banks take commission for cross-border payments(for example, Sberbank has 2% for Visa, 0% for MasterCard, Alfa Bank has 2.5% for Visa and MasterCard).
What it is. When the acquiring bank and the issuing bank are registered in different countries, or the currency of the transaction is different from the currency of the issuing bank, the IPU charges a commission from the bank for the conversion. Visa calls it Optional Issue Fee and International Service Assessment, MasterCard calls it Cross Border Fee. Directly to the client, that is, to us, they should not be transferred. However, some banks set such commissions directly by prescribing in the tariffs, or lay in their conversion rate (for example, in the tariffs of the Central Bank of the Russian Federation + 2.5%) or hide behind the vague wording "the conversion takes place according to the rules of the payment system."
There are 2 international payment systems in Russia: Visa and MasterCard. Their priority goal of functioning is to transfer cash in the country to non-cash circulation and increase the security of payments made. Let's figure out how VISA differs from MasterCard and which payment system is better.
VISA has American roots. The company's share in the card issue market is about 28.6%. The greatest confidence in this system is recorded in North America (USA, Canada, Mexico), the least - in Asian countries (Thailand, India, China).
The corporation works according to its own unique security system VISA 3-D Secure. Its main goal is not only to increase the level of security when conducting operations with card products, but also to simplify the plastic service system via the Internet. VISA is constantly working to improve the privacy of customer information.
Security of the VISA system
In general, the security system consists of 3 independent domains:
- Issuer (includes payment instruments and their sellers).
- Acquirer (includes the financial institution that issues the plastic and its potential holders).
- Interactions (includes the elements required to enable interoperability between other domains).
In them, the generation and verification of each financial transaction takes place. VISA Corporation entered the domestic market in 2009. Today it cooperates with all Russian banks.
Description of the global MasterCard system
MasterCard unites more than 20,000 financial institutions in 210 countries. The priority areas of the corporation's activities are:
- card issuance under the MasterCard, Maestro and Cirrus brands;
- making electronic payments online;
- servicing the card needs of private and corporate persons.
At present, the corporation's share in the card issuance market is 25%. MasterCard makes over 25 billion transactions annually.
MasterCard in Russia and in other countries
The use of the payment system in Russia is expanding every year. As of January 1, 2016, its share in the domestic sector of cashless payments amounted to 38.5%. The gap from VISA is decreasing every year. The Corporation actively cooperates with Sberbank, VTB 24, Russian Standard Bank and other market participants.
The greatest demand for payment system cards is in the EU countries, Brazil and China. The least confidence in it is observed in the countries of North America, although the representative organization is located in the United States.
Comparison of global payment systems
So is there a difference between payment systems? If we compare in terms of the market coverage of non-cash payments, then Visa has a higher figure.
However, it was the VISA Corporation that laid the foundation for the development of non-cash payments.
The remaining differences between payment systems are only theoretical, so in general we can say that there is no fundamental difference between them. Most often, the VISA payment system is used to open payment instruments in dollars and rubles, and MasterCard - in euros and rubles.
From here came the recommendations to issue a Visa to clients who travel to the countries of North America, and MasterCard - to persons making business and tourist trips to Europe. Binding to the dollar or euro is carried out conditionally, since the plastic current account can be tied to any currency.
The conversion of funds on the account between global systems may vary due to the peculiarities of the card issuance market. There is a widespread opinion among users of financial services that it is better to choose a Visa, as it is more reliable. In fact, the payment instruments of the MaxsterCard system are in no way inferior to them in terms of reliability.
Comparative analysis of payment systems
- Market coverage. MasterCard Corporation owns 25% of all cards issued in the world. For VISA, this figure is higher by 3.5%. However, this gap is narrowing every year.
- On a territorial basis. Visa operates in 200 countries of the world, and MasterCard - in 210.
- On innovative development. Visa Corporation has created the basis for the formation of non-cash payments in the world using ATMs and terminals. As for MasterCard, the organization has developed according to the existing experience of a competitor, that is, it has spent less financial resources on the development and implementation of innovations in the card issuance market.
- According to the code used to conduct transactions in the Internet space. If electronic transactions are carried out with a Visa card, then the secret code CVV2 is used, and for MasterCard - CVC2.
- The level of recognition. Both international systems issue debit, credit and co-brand plastic.
- The speed of the operations is about the same. Also, plastic has similar parameters in terms of safety.
- The amount of the annual service fee. On this basis, it is impossible to compare cards of payment systems, since the tariffs are set by each bank independently.
- By the presence of virtual plastic. Both Visa and MasterCard have virtual cards. A payment instrument without a physical medium allows you to increase the security of making payments on the network. Besides, it cannot be lost.
Are there any differences in system maps for different levels?
All plastic offered by issuers can be divided into 3 groups:
- group - cards of the initial segment (Visa Electron, Maestro, instant cards);
- group - cards of the middle segment (Visa Classic, MasterCard Standart);
- group - premium cards (Visa Gold, MasterCard Gold and others).
According to the technical parameters, there are no differences between the plastics of the initial segment in terms of maintenance and the degree of safety. However, there are differences in theory. Firstly, when paying with a Maestro card, entering a PIN code is not required. In fact, it all depends on the capabilities of the terminal. As a rule, in Russia you will have to enter an identifier both when making a transaction with Maestro and Visa Electron.
Secondly, Maestro cards cannot be used to make transactions on the Internet. So, there is no secret code on instant plastic, which must be entered when paying for goods or receiving services online. As for Visa Electron, such an opportunity can be provided by the bank.
Thirdly, instant cards of the MasterCard system cannot be used outside the country. For Visa Electron and Maestro cards, this feature is disabled, but it can be activated free of charge at the issuing bank.
Fourth, there is a difference in service fees between cards. As a rule, it depends on the tariff policy of the bank. So in Sberbank you can release Maestro social with a free annual service. As a rule, this plastic is provided for citizens receiving social benefits. For Visa Electron, the annual payment is 300 rubles. These cards are mainly issued as part of the payroll project.
There are no technical or theoretical differences in medium-level plastics. Here, each client must decide for himself which card is better. The possibilities for using payment instruments of various systems outside the country are completely the same.
Significant differences appear in premium segment cards. Thus, the Visa premium plastic corporation provides the following additional services:
- emergency assistance outside the country on ;
- medical support for travelers;
- providing legal advice;
- cardholder insurance;
- bonuses in the field of leisure, when organizing relocation, renting cars and hotels, etc.
MasterCard cards of the premium segment provide only an emergency assistance service and a customer loyalty program. Other options are connected at the request of the issuing bank. Naturally, they are paid, so not every player in the bank card market is ready to connect them. From this we can conclude that at the premium level, the Visa payment system shows more advantageous positions.
Each global system has its own advantages and disadvantages. However, the difference between them is so small that it can be argued that MasterCard and VISA cards are the same in terms of functionality.
What is better visa or mastercard Greetings! My old camera broke down, but there was no time to go to digital boutiques, so I went to look for a suitable model on the Internet.
Recently, I began to order often in one online store with home delivery.
For prepayment, they give an additional discount, so I got a separate plastic card for this purpose.
If you also want to appreciate all the advantages of online stores and are thinking about paying with a card, then I recommend that you carefully read this post. I’ll tell you which card is better: a visa or a mastercard, and how they differ from each other.
What are the differences and which is better Visa or MasterCard
Which bank card to choose Visa or MasterCard? Which one is better and why? Such questions, probably, have been asked more than once by every resident of our country, either receiving a salary on a bank card, or applying or planning to issue one for use when traveling around other countries.
The question is very interesting, how interesting it is sometimes to listen or read the answers to it, ranging from banal and amateurish reasoning to the political preferences of users.
Often the answers are not exhaustive in nature, as they do not explain the problem. Some of the advice is completely wrong. So let's try to figure this out together! We will not talk about the “level” of cards (Visa Electron/Maestro, Visa Classic/MasterCard Standard, Visa Gold/MasterCard Gold, etc.). Let's talk better about payment systems.
Payment systems First of all, it should be noted that both Visa and Mastercard have long been the two largest payment systems, the reliability of which no one has had any doubts about yet.
Comparing them in terms of such indicators as market share, number of payment terminals, etc., you can find out that Visa is in the lead, but at the same time, you will not have problems with MasterCard abroad.
I'm pretty sure you'll be hard-pressed to find an ATM or payment terminal that claims to support Visa but not MasterCard, and vice versa. So in their basic consumer properties they are exactly the same!
It is better to get official information about these payment systems on their official websites (www.visa.com, www.mastercard.com), or in some knowledge base (for example, in wikipedia).
Practical differences between Visa and Mastercard
You can often hear the following statement: “Visa is an American payment system. MasterCard - European.” Although this is not entirely true (Mastercard was also American, but absorbed the European Eurocard at one time).
Both payment systems have long become international. Look, at least, at the full name of payment systems - VISA International Service Association and MasterCard Worldwide. Something else is much more important.
A warning!
For the Visa payment system, the main currency is the US dollar. This means that transactions with cards of this payment system related to the conversion of currencies will be carried out through the dollar. I will describe examples below.
For the MasterCard payment system, the main currency can be either the US dollar or the Euro. This is a very important feature! That is, transactions can take place either through the Euro or through the dollar. In fact, this is the whole difference, but this is all the possible nuances.
Correspondent accounts Banks of different countries, concluding an agreement with the payment system and issuing cards under the Visa and MasterCard brand, open one or more correspondent accounts with correspondent banks.
Most often in Russia, accounts in Euro are used for mutual settlements in the MasterCard system.
For Visa, without options, in US dollars. The bank, purely theoretically, can open accounts for both Euro and US dollars for MasterCard, in which case MasterCard becomes as convenient as possible for the traveler, but this rarely happens - these are additional expenses from the bank and a decrease in profitability for some operations.
I have not studied this issue thoroughly, but I do not know of any Russian bank that has both accounts open for MasterCard. Therefore, we believe that Visa works with the US dollar, and MasterCard with the Euro.
Conversion
Conversion, in general, occurs if the currency in which you make the payment differs from the currency of your card account (your card account can be in rubles, US dollars or Euros).
Part of the conversions when paying abroad is carried out at the rates of the payment system, part at the rate of your bank. Visa and MasterCard conversion rates differ from each other, but not significantly.
You can find out the conversion rate of your bank by contacting it. Your bank may impose an additional percentage on the conversion operations of payment systems, the so-called “Enter Bank Fee”.
The value of this percentage is determined only by the bank and in practice ranges from 0 to 5%! That is, any of your conversion operations is not only some loss due to the payment system, but, sometimes, also a “contribution” to the welfare of your bank.
Most often, the value of “Enter Bank Fee” over 1% can already be considered impudence! For example, as Sberbank employees told me, when working with Visa from Sberbank, they earn more than if someone uses their MasterCard.
“Enter Bank Fee” for Visa in Sberbank, until recently, was 0.65%. Now let's see how this happens in practice in real life situations.
Conversion Examples Let's take a few different options and see how many conversions we'll get when making a payment in different countries.
All options are conditional, but the most likely ones, the realities may differ depending on the bank (see above about correspondent accounts).
Option 1
- Ruble account.
- Payment for a hotel in France.
- Visa: RUB-USD-EUR
- MasterCard: RUB-EUR
As you can see, MasterCard is more profitable - one conversion.
Option 2
- Euro account.
- Paying a bill at a restaurant in Italy.
- Visa: EUR-USD-EUR
- MasterCard: EUR
MasterCard is clearly more profitable - there is no conversion. But with Visa, you will lose significantly in this option. There will be a double conversion here. Moreover, one conversion will be made by the payment system, and the second by your bank.
Option 3
- Dollar account.
- Paying a bill at a store in Chicago.
- Visa: USD
- MasterCard: USD-EUR-USD
The situation is the opposite, Visa does not have a conversion, and with MasterCard you will lose part of the money due to a double conversion.
Option 4
- Ruble account.
- Payment for a hotel in Riga.
- Visa: RUB-USD-EUR-LVL or RUB-USD-LVL
- MasterCard: RUB-EUR-LVL
With MasterCard double conversion. But with Visa there may be two, but more likely three conversions. The fact is that in Europe many transactions are carried out through the Euro, so a triple conversion is possible.
tips and tricks Thus, if you plan to use a bank card only for crediting your salary in rubles to it, withdrawing cash from an ATM and cashless payments within the country, do not bother about choosing a payment system.
Does not matter! Choose a BANK with the best annual service rates, cash withdrawal fees, etc., overdraft options and other goodies!
If you are planning most of the operations that involve conversion in Europe, then you should use a MasterCard payment system card.
If you are more of a traveler in the Americas or Southeast Asian countries, then your choice is Visa.
Regional Advisor:
- USA, Canada - Visa
- Latin America - Visa
- Australia - Visa
- Thailand - Visa
- Europe - MasterCard
- Africa (not everywhere*) - MasterCard
- Cuba** - MasterCard
* (from the reviews of tourists) - in Algeria there is not a single ATM that supports MasterCard!;
** (from the reviews of tourists) - when traveling to Cuba, it is advisable to have a European bank card and MasterCard system, an American bank card may simply not be accepted, and the commission for converting dollars can reach 20%!
Be careful with your spending. Don't forget about double and triple conversions. Your purchases may cost you much more than you planned. Before traveling abroad, check with the bank about the availability and amount of the Enter Bank Fee.
With a large Enter Bank Fee, each conversion will cost you more. Plus, look at your bank rate. When planning difficult trips around Europe, keep your money in Euros or rubles. In this case, you will be able to reduce your conversion costs.
In some cases, when traveling abroad, it will be beneficial to change rubles for Euros or dollars at the exchange rate of a bank back in Russia, and sometimes it is better to keep your money in rubles and simply pay for your purchases abroad in the state currency. Count!
source: http://site/izgoba.com/
Which bank card is better to choose: Visa vs Mastercard
When applying for a bank card, managers often ask which payment system the client prefers - Visa or Mastercard? This question baffles many - the differences between them are not obvious. However, it is still worth knowing about them.
Visa and Mastercard cards: what do the statistics say?
what the statistics say Before you start comparing Visa and Mastercard, you need to understand what a payment system is.
So, a payment system is a service for transferring money in electronic form, carried out according to a set of rules and using software, hardware and technical means.
Payment systems are local, that is, operating in one country or even within a separate segment of the national market, and international. Visa and Mastercard are among the latter, moreover, they are the most famous and common.
Both of them allow you to withdraw cash from ATMs, as well as pay for purchases and services - both in regular retail outlets and on the Internet. The visa is from the USA. Today, this American payment system, founded in 1970, is used in 200 countries around the world.
Attention!
In Russia, it is possible to issue a card of this system for both dollar and ruble accounts. The headquarters of Mastercard is also located in the USA, but this system has a base currency of operations - the euro. Therefore, when going on a trip to Europe, it is better to take a Mastercard card with you.
The conversion will always depend on where you are - in America it will be done through the dollar, in the Eurozone - through the euro. The Mastercard system is represented in 210 countries, but its coverage is still slightly less than that of Visa - only 20% of all bank cards bear its logo. However, this gap has rapidly narrowed in recent years.
If you are going to the USA, Canada, Southeast Asian countries, Mexico, Australia, Dominican Republic or Latin American countries, then it is better to opt for a Visa card. In Europe, Africa and Cuba, it is more profitable to use Mastercard. In China and Russia, there are practically no differences between these systems.
What is the difference between a Visa card and a Mastercard?
Electronic cards In this category, Visa offers the Visa Electron card, while Mastercard offers Maestro and Mastercard Electronic.
This is the simplest and cheapest type of cards, the use of which is associated with some restrictions.
With their help, you can withdraw money from ATMs and pay wherever there are payment terminals. But they do not allow you to make purchases on the Internet - at least, Maestro and Mastercard Electronic.
Advice!
Visa Electron can sometimes be used for online purchases, but this capability is set by the card issuing bank - some provide it, others do not.
Abroad, electronic cards are not accepted everywhere, since the owner's name is not squeezed out on them, but simply printed, while imprinters widely used all over the world (devices for accepting payments without a terminal) require volumetric letters.
Classic cards
This is the most common type of cards with a low maintenance cost and wide functionality. Visa offers customers Visa Classic and Visa Business cards, and Mastercard - Mastercard Standard.
Such cards allow you to withdraw cash from ATMs, pay for goods and services using payment terminals at retail outlets, and make purchases in online stores. When paying for purchases on the Internet, Visa uses the CVV2 code, and MasterCard uses CVC2.
Premium cards Both systems issue premium cards: Visa Gold and Visa Platinum for Visa, MasterCard Gold and MasterCard Platinum for Mastercard.
Such cards are not just a payment instrument, but a status symbol that emphasizes the wealth of the owner.
Gold and Platinum cards provide the right to a number of additional services, such as free insurance during foreign travel, discounts when renting a car abroad, the opportunity to participate in discount programs of payment systems and receive exclusive discounts from bank partners.
In addition, the holder of a Visa Platinum card and above receives a special priority line of communication with the bank, the ability to quickly receive cash if the card is lost, and sometimes even a personal manager.
It is worth noting that the range of services for Visa is not limited to this - the system also provides its especially important clients with legal and medical assistance abroad, concierge services, and so on. It would seem that Visa clearly wins in the premium segment, but do not rush to make a decision.
In addition to the service offered by the payment system, there are also special services of the issuing bank. And often the functionality of the card is supplemented by various offers from the bank itself, so that in the end Visa and Mastercard will be equal in convenience.
It is also worth mentioning the international program of discounts and privileges MasterCard Priceless Cities (“Priceless Cities”), which started in 2011. Today, the status of "priceless city" has a number of large cities: London, Singapore, Sydney, Beijing, Toronto, Moscow and others.
The main idea of the program is a personal approach to the interests of each cardholder. The program is developed in partnership with the best museums, restaurants and recreational facilities, which allows cardholders to enjoy unique offers, discounts and other privileges provided by program partners.
Credit and debit cards
Cards of both payment systems can be either debit (the client uses only his own funds) or credit (the client uses the bank's money and repays the loan monthly). There is also an intermediate option - debit cards with an overdraft.
In this case, the cardholder uses his own money, but if necessary, he can go into the red and use borrowed funds. Credit cards have a credit limit, as well as a daily spending limit; Visa Classic, Visa Business and Mastercard Standard have it lower than premium Visa Gold, Visa Platinum, MasterCard Gold and MasterCard Platinum.
Which card is better? 4:5 in favor of MasterCard
So which payment system to choose? Let's try to compare both.
- Country coverage: 200 for Visa versus 210 for Mastercard. Mastercard wins.
- Prevalence: Worldwide, Visa is more common than Mastercard - 28% of all cards belong to the first system, 20% to the second.
- Prevalence in Russia: Visa has more than 80 partner banks in our country, its share is 65%, and Mastercard has about 100 partner banks, but its share is estimated at 35%. However, since more banks work with Mastercard, it is still a little easier to get such a card, so Mastercard wins in this parameter.
- Payment options: Visa cards are accepted by more than 20 million companies worldwide. Mastercard has an even higher figure - 30 million outlets. Victory for Mastercard.
- Online shopping: Both systems enable you to securely pay for goods and services online. Draw.
- Security: cards of both payment systems have comparable security parameters. Visa uses the Visa Money Transfer service (to transfer money from a Visa card to a Visa card and to transfer cash to a Visa card through an ATM/terminal). A similar MasterCard MoneySend service is also used by a number of banks, although it is less common. In addition, Visa supports an additional "Verified by Visa" security system.
- Distinctive features: in addition to cards of the usual format, Visa and Mastercard also issue mini-cards (for example, Alfa-Bank customers who have issued a debit or credit Cosmo card receive a small keychain card in addition to a regular card). Its functionality is the same as that of a regular one, with the only difference being that the mini-card cannot be used at ATMs.
- Special offers: the Visa system in Russia has about 40 partner companies, where cardholders can always receive discounts of 5-10%, temporary promotions are also regularly held. Mastercard has a bonus program MasterCard Rewards - paying for purchases with a MasterCard card, the holder receives bonus points and can exchange them for prizes from the program catalog - at the moment it has more than 230 different gifts. In addition, there are also discount programs - however, there are not so many of them. As a result, we give the palm to Visa.
So, in the aggregate of all parameters, Mastercard wins - however, this is a victory by a very small margin. In essence, it is safe to say that both systems are good, convenient and safe.
source: http://website/www.kp.ru/
Visa or MasterCard - which is better?
Visa or MasterCard Which card system to choose - Visa or MasterCard? What is the fundamental difference and is there one?
The number of bank cards in use by citizens of the Russian Federation is increasing. Finally, we are used to paying not in cash, but with a plastic card. Salaries are transferred to cards, loans are received in the form of credit cards - this is both more convenient and safer.
In addition to the standard salary cards, the average citizen now has 2-3 more cards from various banks. Why does a person need so many cards? The most common option is a credit card.
The second option is for savings.
If a person opens a deposit in a bank, then he will most likely be offered to issue a plastic card to the account. When issuing another plastic card, a bank client often faces a logical question - which payment system does he prefer?
There are several global payment systems in the world, but two have gained the most popularity both in Russia and in Europe: Visa and MasterCard. So, a bank employee will ask you - which payment system do you choose - Visa or MasterCard?
And really, which payment system is better to choose? MasterCard or Visa? What is more convenient and what is better? Let's try to figure it out.
A warning!
At first glance, there is not much difference between Visa and Mastercard. Both systems are represented in the vast majority of countries around the world, with both of them working with more than 20,000 banks and other financial institutions around the world. In practice, this means that in order to find an institution where your Visa or Mastercard will not be accepted, you will have to try very hard.
If you look at the question from a technical point of view, you will not notice the difference either. The speed of payments, the level of card security and the level of service are almost the same. What is the difference? Visa and Mastercard differ in the following points:
- Conversion of funds when paying in a currency other than the ruble;
- The level of service when using cards of different “levels”;
- The presence of certain promotions from partner banks of payment systems.
Using cards of different levels of service
Both payment systems have different levels of cards:
- Initial: Visa - Visa Electron, Mastercard - Maestro;
- Standard: Visa - Visa Classic, Mastercard - MasterCard Standard;
- Premium: Visa - Visa Gold or Visa Platinum, Mastercard - MasterCard Gold or MasterCard Platinum;
The entry level cards are usually salary cards. The level of services here is comparable and the range of possibilities is rather narrow for both systems. For example, with an entry-level card, you will not be able to make payments on the Internet. True, for Visa Electron cards, such an opportunity can be connected by the issuing bank, but in practice this is rare.
Theoretically, there are some differences between them. It consists in the fact that for Maestro cards it is required to enter a PIN code, while with Visa Electron cards it is not necessary to enter a PIN. But in practice, everything depends not only on the type of payment system, but also on the type of payment terminal installed in this particular outlet.
Another significant difference is the use of entry-level cards outside the Russian Federation. By default, this feature is disabled for Visa Electron and Maestro cards, you can connect it, but you will have to contact the bank. In most cases, its connection is free. But for Maestro Momentum cards, there is no such possibility in principle.
The advantage of entry-level cards is, first of all, a low card maintenance fee - usually up to 300 rubles per year. In a number of banks, this annual payment is completely absent.
It should be noted that Maestro cards are the most widely used in Russia. It is their banks that most often offer for salary projects, scholarships or pensions.
If we talk about plastic cards of the “Standard” class, then there are practically no differences. They can be used to make purchases on the Internet, to pay for goods and services in stores, to withdraw cash from an ATM, etc. Abroad, Visa Classic and MasterCard Standard cards also work without problems.
In the premium segment, there is a more pronounced difference between Visa and Maestro.
Visa Gold cards offer customers the following services:
- travel medical support;
- legal service;
- assistance in booking railway and air tickets, ordering a restaurant, etc.;
- emergency assistance abroad (if the card was lost or stolen).
The following programs are additionally available for Visa Platinum cards:
- "Purchase protection program";
- "Warranty Extension Program";
Recently, Visa released an even “more premium” card - Visa Infinite. In addition to the services indicated above, this card also provides an opportunity to receive such bonuses as discounts on insurance (including for family members of the cardholder), organization of relocations, detailed information about restaurants, delivery service and other pleasant little things.
Attention!
All these services are available to Premium segment cardholders by default. Moreover, if earlier it was not so easy to get a Premium card (at least you had to have a tidy sum on your account), now it is done easily and quickly. Even for customers with a minimal account history, banks are ready to issue Visa Gold.
MasterCard premium cards also have several programs, but only two of them are connected by default - a loyalty program from your bank's partners and emergency assistance in case of card loss. Other services are connected for separate money. Therefore, when issuing a card, you need to clarify with the bank which services you will be connected to.
Obviously, with general equality in the “Standard” and “Initial” segments, Visa wins in the “Premium” segment
Currency conversion Currency conversion is perhaps the most significant difference between Visa and MasterCard cards.
The main difference is in the currency. For Visa, the main currency is the US dollar. Whereas for MasterCard - the euro.
Each operation of converting the main currency of your account (rubles) into another currency involves a commission. It is logical that the smaller the number of conversions, the more profitable it is to use the card in certain conditions.
As a rule, the conversion takes place at the rate of the bank. For Visa cards, you can find out the conversion rate in advance - before the transaction, while when paying with MasterCard, you will know the rate only after the transaction is completed.
Obviously, if you pay in one of the European countries, then MasterCard cards will be more profitable. If you pay with Visa, it will turn out that you will pay the conversion fee twice: the first time from rubles to dollars, the second time from dollars to euros.
In which countries is Visa more profitable?
Visa cards are more profitable to use in the USA, Latin America, Australia, Canada and Thailand.
Bank shares
Another parameter by which cards of various payment systems differ is bank shares.
It so happened that Visa cards are more popular in the world, so Visa also offers more favorable conditions for Russian cardholders. We can participate in various promotions such as interest returns, discounts and receive some other nice bonuses.
Conclusion: so what is more profitable?
Standard cards of both payment systems do not have fundamentally important differences. The only thing you really need to pay attention to is currency conversion.
Advice!
If you are going to use a plastic card while traveling in Europe, MasterCard will be the best option. This payment system has no other significant advantages.
Pay attention to the conditions for issuing a card by the issuing bank. The best option is to own two cards with different payment systems - this way you protect yourself from possible failures and can optimally use both payment systems.
source: http://site/fincle.ru/
Visa or MasterCard? What is better and what is the difference
What is better and what is the difference In our age of new technologies, it is already impossible to imagine life without a bank card.
It is especially convenient when traveling abroad - you do not need to carry cash with you, declare it at customs, and easily pay for services and various goods.
How not to get confused in the offers of banks and choose a card that suits you? It is worth knowing that, first of all, plastic cards differ in the payment system that issues them.
There are both national payment systems (for example, Union Card) and international ones. The most popular international payment systems (which, in fact, will be discussed today) are Visa, MasterCard, American Express and Discover.
Visa payment system
This system is the most famous and largest. Its cards are distributed almost all over the world, they are accepted for payment without problems in about 200 countries.
Visa has developed a whole range of payment cards designed for customers with different needs and different lifestyles: these are credit, debit and prepaid cards, which are not yet very popular in Russia.
With these cards, you can easily make purchases both in real and virtual stores, travel around the world and pay for all kinds of services. Visa cards also differ in terms of "prestige": Electron, Gold, Classic, Platinum, etc. The "cooler" the card, the greater the number of services available to its owners.
This payment system is in second place after the Visa system (MasterCard accounts for approximately 26% of the world's payment cards, while Visa accounts for about 57%). MasterCard cards are accepted in 210 countries - and this is more than 29 million points.
Both credit and debit and co-brand cards are issued, allowing you to receive additional bonuses, services and discounts. MasterCard cards are also divided into cheaper and more expensive ones: Cirrus/Maestro, Electronic, Platinum, Standard, Gold, World and others.
American Express payment system
MasterCard payment system This payment system accounts for about 13% of payment cards worldwide.
Most of these cards are issued in the United States. The main difference is that their holders are people with fairly high incomes.
American Express provides them with a very high quality service: various insurances, medical and legal assistance, and all kinds of bonuses.
In Russia, while the cards of this payment system are not widely distributed.
Payment system Discover
Discover is a non-banking payment system that allows you to take a consumer loan, make payments, receive discounts and benefits. This system has become widespread mainly in the United States, and its cards are also used in Mexico and Canada. Distinctive features are rather low interest rates and an individual approach to a particular client.
How Visa differs from MasterCard The fact remains that Russian financial institutions issue mainly Visa and MasterCard cards.
According to experts, there is practically no difference between the cards of these payment systems when used in Russia, since they offer similar conditions and products.
But when going abroad, you should remember that the conversion fee will depend on the currency in which the bank makes settlements with the payment system.
Of course, you can open cards in foreign currency, but this is mainly justified when you plan to operate with large amounts and want to insure yourself against sharp fluctuations in the exchange rate. Well, for an ordinary tour, perhaps, an account opened in rubles will suffice.
When does the conversion take place? When you make a payment in a currency other than the currency on your card account. When paying abroad, part of the conversions occurs at the rate of the payment system, and the other part - at the rate of the bank in which the card is opened. Some banks also introduce additional commissions for conversion operations, their amount can reach 5% (it is better to find out such nuances in advance).
It is believed that Visa "works" through the US dollar, and MasterCard - through the euro. It turns out that if you pay with a Visa card in Europe (or, conversely, in America with a MasterCard card), then such a calculation can be extremely unprofitable due to double (and sometimes triple) conversion.
But this is not always the case. The bank can conduct settlements with the MasterCard system not at all in euros, but in dollars. And vice versa. For example, in Rosgosstrakh Bank, all payments made in the Eurozone using Visa cards are now made not through the dollar, but through the euro.
In JSCB "Kranbank" it is even more interesting (and, by the way, more profitable for the client): settlements are carried out with the Visa and MasterCard PS both in dollars and in euros. Those. regardless of the payment system:
- if the transaction currency is euro (in the Eurozone), then settlements with the PS are made in euro;
- if the currency of the transaction is the dollar (in the USA), then the settlements with the PS are made in dollars;
- if the currency of the operation is some other (not euros and dollars), then the settlements with the PS are made in dollars.
What's the matter? It turns out that everything depends on the agreement concluded between the payment system and the credit institution. Therefore, when opening a card, you should find out from a bank employee in which currency settlements with PS are made in this particular bank. And already from this "dance".
A warning!
To summarize, for trips to the USA, Australia, Canada or Thailand, preference should be given to cards of the Visa payment system. But for traveling around Europe, Cuba or Africa, it is better to choose MasterCard. But I repeat - it all depends on the particular bank, so it is impossible to give unambiguous recommendations here.
And one more thing: when traveling abroad, cards must be at least MasterCard Standard or Visa Classic, since simpler cards are usually allowed to be used only in Russia.