The Difference Between Visa and Mastercard - N26

Before we dive into the differences between Visa and Mastercard, it’s worth explaining what these two companies do. Visa and Mastercard are payment networks that allow for the electronic transfer of funds between banks or other financial institutions and companies. They provide branded payment processing services for credit cards, debit cards, and prepaid cards that banks or financial institutions can then offer their customers. 

In this article, we’ll look at the differences between Visa and Mastercard. We’ll cover how widely they’re accepted, how many ATMs they offer, how many businesses accept them, and more.

Mastercardcards are accepted in 210 countries, at over 37 million establishments, and at one million ATMs around the world. And, several studies have shown that they offer a lower exchange rate for foreign currencies than alternative providers. In e-commerce they rank second behind Visa.

Here are the main Mastercard benefits:

• Emergency card replacement service if lost or stolen
• Price protection for up to 60 days after making a purchase
• Mastercard SecureCode security 

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The Visa card is accepted by 44 million establishments across 200 countries. By and large, the exchange rate Visa cards offer is less competitive than Mastercard rates.

Here’s a list of the top visa card benefits:

• Card replacement service if lost or stolen
• Price protection for up to 30 days after making a purchase
• Cash advances on credit cards via the ATM network
• Verified by Visa security protocol 

Credit cards, including:

• Standard credit cards
• World credit cards
• Gold credit cards 

Debit cards, including:

• Standard debit cards
• World debit cards

Prepaid card, including:

• Standard pre-paid cards 

Credit cards:

• Visa Classic
• Visa Gold
• Visa Platinum
• Visa Signature
• Visa Infinite

Debit cards:

• Classic Visa debit
• Gold Visa debit
• Platinum Visa debit
• Signature Visa debit
• On the Mastercard and Visa websites, you can find out which banks issue cards with them. They also offer bank cards for the self-employed and small and big companies.

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Surprisingly, neither Visa nor Mastercard were the world’s first bank card. In 1946, John Biggins, a banker from Brooklyn, created the first bank-issued card. It could only used locally and customers had to have an account with Biggins’ bank to use it.

12 years later, in 1958, Visa arrived. It was the brainchild of Bank of America, which created it with the launch of its BankAmericard in California. Today, it may be hard to imagine a paper bank card with a $300 limit—but that’s exactly what the original Visa card was. Eight years later, in 1966, a group of US bankers created the Interbank Card Association. Within a year, they changed the name to Master Charge, and then to Mastercard in 1979.

In the 1980s, Visa launched an ATM network to allow cardholders to withdraw cash at any time of day. In the same decade, Mastercard became China’s first bank card and launched the first-ever laser hologram card. Mastercard merged with Europay International in the ‘90s, and went public on the New York Stock Exchange in 2006.

Nowadays, Visa is a joint venture owned by over 21,000 financial institutions. BBVA issued Spain’s first Visa card in 1978. Now, the number of Visa cards issued to date in the country sits at around 40 million. In fact, Spain is now the second country in Europe with the most Visa cards.

Both companies have evolved since their creation, adapting to the technical advances that have made our everyday lives more comfortable and flexible—like the development of contactless cards and mobile payments.

In effect, the differences between Visa and Mastercard are less important for customers than what the card issuer (usually a bank) offers in conjunction with the card. From rewards points, fees, and more, Visa and Mastercard only process payments, rather than deciding on the terms and benefits the card offers. What’s more, both cards are accepted worldwide, so you most likely won’t have an issue paying with either, no matter where you are. 

As stated above, the biggest differences between Visa and Mastercard lie in the banks that issue them. The perks they offer to their customers, like discounts and promotions, vary from bank to bank.

Visa and Mastercard are very similar in Spain, and both are reliable options. Your choice of one over the other will depend on your needs, and which provider or bank suits you best. For example, if you’re going to travel abroad, it would be worth having the card with the best exchange rate, and making sure it’s accepted in the countries you’re visiting.

As well as Visa and Mastercard, there are other debit- and credit-card franchises that you’ll recognize. Let’s look at the two most famous ones:

• Diners Club. Diners Club came about in 1950 as the world’s first multi-use credit card. Diners Club card holders earn points every time they shop. These points then give them access to a wide variety of discounts, benefits, and exclusive experiences.
• American Express. This card is known for offering exclusive benefits that aren’t available with any other card—but it’s not free. Like the Diners Club card, American Express is widely used in the corporate world, and many companies provide their senior executives with one.

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At N26, we believe banking should be easy. We issue Mastercard debit cards with all our accounts, making payments online or in-store a breeze. Choose from a free account N26 Standard, bank account N26 Smart, bank account to travel N26 You, or premium account N26 Metal account, and discover a range of features and special offers. Are you self-employed? Sign up for one of our business accounts to earn cashback, and even more benefits. Isn’t it finally time to discover a bank you’ll love?