You all must have seen the Debit Card or Credit Card. You would have noticed the cards come with different labels like; RuPay, Visa, Mastercard, Contactless, and Maestro. Have you ever wondered why these cards have different labels? Let me explain to you.
Basically, these are financial institutes or electronic payment networks that provide their electronic payment services to customers through Debit Cards or Credit Cards. Now, you may think that if there is only one service, electronic payment, then why are there so many companies? One network is enough to do it very well.
Understand it by an example. Numerous smartphone companies are there and all companies are known for their different types of specs and features in smartphones. Likewise, multiple companies are there, which provide different kinds of electronic payment services. However, two of them, Visa and Mastercard, are very famous.
Today, throughout the blog, you will get to know what are Visa and Mastercard, their different services, and the difference between Visa and Mastercard. So make sure you are present till the end of the blog. Let’s start with what are Visa and Mastercard.
What Are Visa And Mastercard?
Visa and Mastercard are the two world’s biggest retail electronic payment networks. These two companies dominate the Debit and Credit Card market. A maximum of Debit or Credit Card holders prefer only Visa and Mastercard as the services of these payment networks are commendable.
It is a perception that these companies manufacture and sell their own Debit Card and Credit Card, but not. Visa and Mastercard don’t sell Debit and Credit Cards directly to the users. Visa and Mastercard are the only mediums of electronic payments. The companies only participate in the procedure of electronic payment, nothing else.
Let me break the perception and tell you how the Visa and Mastercard Cards come to you. The companies collaborate with banks, financial institutes, airlines, and other public firms. These firms give you the card on their conditions, and Visa and Mastercard manage the process of payment.
Being electronic payment networks, Visa and Mastercard offer users to pay with a higher limit, the freedom to pay from anywhere in the world, and give many more exclusive services. Other than this, some other services like swipe, withdrawal, and balance checks from ATMs are available with both companies’ cards.
Visa and Mastercard provide three types of cards; Debit Card, Credit Card, and Prepaid Card. Moreover, Debit cards and Credit Cards come on different levels. Let me tell you that these levels of Debit Card and Credit Cards are divided according to the withdrawal limit. Starting from basic, as the card level increases, so does the cash withdrawal limit. The annual fee of the card also increases with the level of the card.
If you need more cash withdrawal limits, you can ask your bank or card provider to upgrade your Debit Card level whenever you want. But, the Credit Card level is decided according to your past credit score. If your credit score is eligible for an upgrade, the bank will allow you to upgrade your card, otherwise not.
Levels Of Visa Cards
- Classic Debit and Credit Visa Card.
- Gold Debit and Credit Visa Card.
- Platinum Debit and Credit Visa Card.
- Signature Debit and Credit Visa Card.
- Infinite Debit and Credit Visa Card.
Levels Of Mastercard Cards
- Standard Debit and Credit MasterCard.
- Platinum Debit and Credit MasterCard.
- World Debit and Credit MasterCard.
- World Elite Credit MasterCard.
Till here, you have got the idea about the basic information of companies. Now, to understand clearly about these companies, we will discuss the uses of cards of Visa and Mastercard.
Uses Of Visa Card And Mastercard Card
- You can swipe these companies’ cards at the merchant.
- You can use Visa and Mastercard to withdraw cash and check balances at any ATM with the applicable fee.
- Visa and Mastercard are usable worldwide.
- The cards can be used for making payments on online shopping websites.
- The companies, Visa and Mastercard, give three types of cards, Debit Cards, Credit Cards, and Prepaid Cards.
- Along with individuals’ cards, Visa and Mastercard provide various types of business services and cards.
Is There Any Difference Between Visa And Mastercard?
Obviously, there are differences between Visa and Mastercard. The major difference between Visa and Mastercard is the different applicable charges. Moreover, the cards’ level is another difference between Visa and Mastercard.
As we discussed, Visa and Mastercard are provided by different banks or financial institutes. There is no direct connection between these companies and end users. Visa and Mastercard deal with banks or financial institutes. These companies collected their charges from banks.
After that, everything is up to the bank or financial institution which is giving you the card. The card distributors decide how much charge they will collect from the cardholder. Now, every financial institute is different so the charges are different. Also, applicable charges depend on different levels of the card.