Visa or Mastercard? Which card should you choose? In our article, we have provided the most important information about these two payment instruments so that you can make the right choice. From this text, you will learn what is the difference between the two cards, how to make a currency transaction using Visa and Mastercard, and whether it is worth using their electronic wallets.
Visa and Mastercard – differences
Visa and MasterCard are the two largest organizations in the world that unite banks and various financial institutions with the aim of unifying payment methods and creating a convenient and, most importantly, fast trading system that is common to all.
At this stage, it should be emphasized that both Visa and Mastercard offer their customers payment cards, which may include: debit cards (for example, Visa Debit, Mastercard Debit Standard), allowing immediate payment, credit cards (for example, Visa Standard, Standard Mastercard) – in this case, the client has the opportunity to make a deferred payment, as well as prepaid cards (for example, Visa Prepaid, Mastercard Prepaid), thanks to which the payment is made in advance.
It is important to know that these two cards are less and less different from each other every year. In addition, it should be noted that both Visa and Mastercard are recognized by most financial institutions.
Settlements for transactions with a Visa card abroad
If you have a Visa card, the amount after payment will be automatically converted into RUB in accordance with the current exchange rate table. Interestingly, in the case of the Visa rate, each conversion is much more profitable than the currency spreads used by banks.
You should also be aware that if you decide to use a debit or credit card from Visa, you will not have any problems with double currency conversions, i.e. converting euros into dollars, and then dollars into rubles. It is also important to know that approximately 2-3 days after the transaction is converted by Visa, the bank will charge an interest fee – depending on the institution, its amount may vary.
How do foreign exchange settlements look like with Mastercard?
If we decide to receive, for example, a Mastercard credit card and want to pay with it abroad in another currency, then we must take into account that the operator of this card will withdraw the amount from our transactions in double currency conversion. When paying in a currency other than Euro, our money will first be converted into this currency, and then into rubles.
However, if we pay in euros, then Mastercard will leave this to our bank for currency conversion – a disadvantage as bank spreads are more expensive. Of course, it cannot be ruled out that the institution where we have a bank account and use its financial products will not charge us a commission for transactions in euros.
Mastercard and Visa – which one will work better abroad?
There is quite a big difference between Mastercard and Visa, which are payments made abroad. Mastercard transactions abroad are associated with much higher additional fees than in the case of Visa – most often Mastercard fees range from 2 to 6%. What is the reason for this?
The reason is quite simple, the currency of Mastercard settlements is usually euros or dollars, therefore, when paying in local currency, the transaction amount is first converted into euros at the Mastercard rate, and then into rubles at the bank rate, which entails costs associated with double currency conversion. In the case of Visa, the payment currency is rubles, and each payment will be converted into only one currency.
Due to high commissions, more and more people decide to use the Revolut service, which is an innovative financial product that allows you to pay with your card abroad in 130 currencies and save really large amounts of money on currency conversion costs.
Visa and Mastercard issuance – convenient e-wallets
Electronic money is increasingly replacing physical means in the form of cash. One of the most interesting financial services offered by Mastercard is the so-called Masterpass – an electronic wallet that facilitates the management of payments and their execution over the Internet. What should I do to use it? It’s simple, just register your card.
A similar solution is offered by Visa, which has introduced an electronic wallet Visa Checkout into its offer. This tool works in much the same way as Masterpass. In addition to being able to pay quickly, these wallets also offer various promotions and special offers.
Visa and Mastercard – advantages and disadvantages
Visa and Mastercard are very similar to each other, so making a decision about one of them is difficult. What to do in this situation? It is worth analyzing all the positive and negative aspects of these payment instruments. Below we have presented the advantages and disadvantages of Visa and Mastercard so you can see which one suits your needs.
Visa benefits:
– profitable convoy rsia exchange rate,
– no need for double currency,
– guarantee of immediate currency conversion.
Disadvantages of a Visa:
– not every bank offers it.
Benefits of Mastercard:
– most banks offer it,
– Accepted in more countries than Visa.
Disadvantages of Mastercard:
Double currency conversion required for payments other than euros. In the case of the euro, the conversion involves the use of bank spreads.