Log in to your personal account
Sign up
Please fill in all the fields carefully
registration form. A registration notification will be sent to the e-mail address you specified.
If you want to use Telegram @username, click Login and enter your Telegram @username in the login field
Attention! Password must consist of 8 or more characters, uppercase and lowercase letters, as well as numbers
Password recovery
Enter the e-mail address specified during registration
You send
You send
Go back

Is there a difference between VISA and MasterCard?

2016-05-15

Is there a difference between VISA and MasterCard?

In the banking system of Russia and a number of other countries, two types of cards are most common - Visa or MasterCard. But ordinary users, when choosing a particular product, are lost, not fully understanding the features of the options. What is the difference between Visa and MasterCard? Does it make sense to focus on a specific card or are there no differences?
 

History of appearance

The history of payment systems dates back to 1958, when Bank of America launched the first BankAmericard card. The new product almost immediately gained respect among the masses, which led to the emergence of a special company dealing with the above-mentioned cards. The newly formed structure implemented licenses for the issue of cards, began to issue permits for the use of cards by other banking institutions and regulate legal and other issues of their use.

But the problem with BankAmericard was its name, which prevented the payment system from gaining popularity in the world. The reason is in negative associations with the Bank of America, which at that time did not have the best reputation. That is why experts began to look for a more convenient name that would sound the same in different languages and do not cause extraneous associations.

At that time, no one thought about the difference between Visa and MasterCard, because there was only one card in use - Visa. Many people consider this name an abbreviation, but it is not. If you literally translate the word into Russian, then it means registration, visa and so on.

The first card with the inscription Visa was issued in mid-1976, and the rest (less popular) names of plastic cards are a thing of the past. Today such cards are the most popular and are used in hundreds of countries around the world. Already at the beginning of the XXI century, the volume of transactions with "plastic" exceeded 57% of all payment transactions. At the same time, the main competitor of Visa is another system - MasterCard, which will be discussed below. Based on the foregoing, we can conclude that VISA is an exclusively American system, and it is based on the US national currency (dollar).

But when did people have a choice - Visa or MasterCard? The year of the “birth” of the second system was 1966. The new card appeared against the background of an agreement between a group of US banks. Initially, the system had a different name - Interbank Card Association, and under its auspices more than twenty thousand organizations worked in many countries of the world. The payment system office was located in the "business heart" of the United States - New York. In 1968, the format underwent a change. This happened after signing an agreement with a system operating in Europe (Eurocard). Since then, the name has also changed, which was finally approved in 1979 (it remains to this day). Actually, this is the main difference between Visa and MasterCard.
 

Differences in terms of conversion

In the banking system of the CIS countries, the systems mentioned above have gained the greatest popularity. According to experts, there are no special differences between the cards, because each of them offers products that are similar in terms of conditions and features. So, if you want to go abroad, you should take into account the conversion fee. The latter depends on the banking institution that carries out the calculations.

To save money abroad (when carrying out large transactions), you should apply for a bank card in the currency of another country. This approach allows you to protect yourself from unexpected exchange rate fluctuations. When making a transaction abroad (buying any product or service), one share of the conversion goes at the rate of the chosen system, and the second at the bank rate. A number of financial institutions introduce additional commissions that amount to 5%.

There is a widespread opinion among the masses - the difference between Visa and MasterCard is that the first system is from the USA, that is, it is based on the dollar, and the second is based on the European currency. Consequently, if you make purchases in Europe using a Visa card, and in the United States, on the contrary, use MasterCard, then the size of the conversion increases (it doubles, or even triples).

But this is not the case in all cases. Banking institutions have the right to make payments for the same MasterCard not in euros, but in US dollars. In this case, it makes no sense to talk about a high level of conversion. Much depends on the agreement signed by the financial institution and the payment system. That is why when opening an account (choosing Visa or MasterCard) it is worth asking a bank employee in which currency the payments will be made.
 

The real differences

Are the systems under consideration no different? In practice, there is still a difference between Visa and MasterCard. Here are the highlights:

    It has already been mentioned that the main currency for Visa is the US dollar. As a consequence, most of the transactions are carried out through the US currency. In turn, for MasterCard, everything is not so simple. Here, both the euro and the US dollar can act as the base currency. It turns out that the European system is more flexible and allows banks to enter into various contracts. As for Russia, here MasterCard is used pegged to the European currency, and Visa is used exclusively in dollars.
    The network of devices allowing Visa users to withdraw funds is higher than that of a direct competitor.
    When making transactions with Visa cards, you will have to accept the withdrawal of 1.5% for the money conversion service (the percentage is deducted from the withdrawn amount). As for the MasterCard system, there is no such percentage here.
    In the process of performing transactions in the global network using a MasterCard card, the CVC2 code is used, and for the “partner” - CVV2.
 

General features

Considering the difference between Visa and Mastercard, it is worth highlighting a number of similar features of the two systems:

    The ability to make payments for services and goods that are purchased outside the territory of Russia or within the country.
    Conducting utility payments through the Internet bank, ATMs or SMS services.
    Carrying out transactions between cards using a wide ATM network throughout Russia.
    Withdrawing money at numerous points and ATMs.
    Control of expenses on cards by connecting the information service via SMS.
    Connection of a number of additional services that simplify the process of using the service.
    Convenient setting of upper and lower limits for making transactions in relation to a card account.

Summing up the above, travelers should consider the following points:

- When sending to countries such as Canada, Australia, the United States of America or Thailand, you should give priority to the more common Visa today.

- If you plan to travel to African countries, Cuba or Europe, then MasterCard looks more preferable from the standpoint of saving on conversion.

On the other hand, not everything is unambiguous here, because a lot depends on the conditions of a particular institution. Consequently, it is difficult to give any specific recommendations for a particular system. In addition, when traveling abroad, you should have at least Classic (for Visa) and Standart (for MasterCard) cards with you.