Visa VS. MasterCard Credit Cards
A question that has been around for ages, and most of the time it does go unanswered. Let me start off today’ article with a bit of information about Visa and MasterCard; they are the two leading credit card companies in the world. Now there are millions of people using both Visa and MasterCard around the world, so how do we really determine which service is the best?
Who is The Best?
First we need to remember that, both Visa and MasterCard do not actually issue cards themselves; they simply methods of payment. They rely on banks and financial institutions to issue credit cards that utilize these payment methods.
This means, any interest rate, annual fees, rewards and any other charges are issued by your bank or financial institution; Visa and MasterCard have nothing to do with it.
Visa and MasterCard do however charging the retailer for using their payment method.
It all comes down to which type of payment is most accepted; seeing as pretty much everywhere accepts both types of payment, how would we decide in the end?
I came up with one way to look at which card is better or at least most used; this is through who has the most market share.
Market Share
Well according the a report in 2008 by Neilson, they reported that Visa Inc (Visa Canada’s parent company) held a 38.3% market share of credit cards. They did however have a 60.7% market share in debt cards in the US (no current Canadian stats). MasterCard on the other hand has no specific data out. Our research shows that MasterCard and Visa have a combined market share of about 74% (estimated). If we take the previous market share of 38.3% from Visa and subtract it from the combined market share of 74%. We have MasterCard controlling 38.7% of the market in credit cards.
Now it still would be a personal opinion on which is better, Visa or MasterCard, but chances are, in your lifetime you will own both a Visa and a MasterCard and it will then boil down to what card offers the most.
Which Canadian Banks Provide Visa and MasterCards?
| Visa | MasterCard |
|
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As you can tell in the chart above. Visa dominates the Canadian banking arena. I wonder how upset MasterCard is? Visa literally doubles MasterCard in this arena. Time to smarten up MasterCard, go and offer some sweeten up deals. Citizens Bank of Canada is relatively small compared to all the other names. I’m sure they’d love to cut some costs in there credit card department to go after the big banks (or other online banks).
Personally, I am leaning over to MasterCard’ side only because Tim Horton’ does not accept any other kind of credit card payment. I do not walk around with much cash so having a credit card which can be used at Tim Horton’ to me is the best.
Well this is only one man’s opinion, what’s yours?
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Comments (16 )
Mastercard for me due to more time to pay, less fee’s, easier to manage/check up on and easier to pay off with lower interest as per my experience. Both are ok if you are responcible with it. If you are stupid with any credit account then it will bite you in the ass.
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yeah. The article is very true, Visa or Mastercard has nothing to do with direct engagement with customers. They both are widely accepted, usually if one selects a credit or debit card they select the services of the bank not visa or a mastercard.
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I can’t believe Tim Horton’s doesn’t accept Visa… (I had a big order for the office). Tim Horton’s accepts Mastercard…
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Joseph Reply:
June 20th, 2011 at 10:09 pm
Actually, many tim hortons locations (all the new on Route locations) accept ALL credit cards, including mastercard, visa, american express ext. it all depends on who owns the location and how much money they are willing to spend on technology.
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Sensei Reply:
June 22nd, 2011 at 11:20 am
Nowadays, I haven’t walked into a Tim Hortons that does not accept all forms of credit. At the time of writing the article that was not the case. I am happy though that they accept all forms of credit.
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Hi there are people in Quebec reading your articles so it would be nice to include all Canadian Banks like National Bank? Desjardins… although not a chartered bank, but still a big Visa cards issuer in Quebec? Thanks
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Hi Ben,
We talk about all banks and have talked about the banks you mentioned:
http://banknerd.ca/2009/09/10/knowing-you-banks-desjardin-group/
http://banknerd.ca/2009/05/22/knowing-your-banks-national-bank-of-canada/
Desjardins doesn’t really like us (not sure why). Their PR dept never turns any of our msgs. But recently Francoismat just sent us this PR through twitter. We plan on writing about it this week.
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What about Canada’s 6th biggest bank – National Bank? How about HSBC? You would include Citizens Bank of Canada, which is a spec on the Canadian front. Both these institutions uses MasterCard. So the landscape is actually much more evenly spread out.
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Who cares in the end the world banking system wins
Dwindling economies, buttered up deals and falling credit histories describe America best.
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CIBC is offers MasterCard and VISA.
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Mastercard is better. Reason is, I love cash back, IMO, its the biggest rewards card available. Mastercard is 0 fee, with 2% back on groceries, and 1% on every single other thing. Visa is $29 fee yearly, 1% on groceries, and 0.5 on everything else. So for less cost / year, I get better cash back
. Interest rates are both 19.99%, but I never buy something unless I have the cash or money in the bank.
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Dalton Reply:
May 19th, 2012 at 5:51 pm
ACTUALLY, you are completely wrong, i don’t mean to be rude but fees are not determined by Visa or Mastercard, they are determined by the card issuer. For example, you can go to a financial institution and get a simple visa card with rewards, mine is a Scotia Scene Visa 1% cash back and 5% cash back when at any cineplex, or some online merchants. Visa and Mastercard are just 2 separate payment networks, they charge the card issuer, and the issuer may decide to charge an annual fee. Also fees can depend on which card you choose. If you choose a “premium” card such as “Visa Infinite” you will have to pay annual fees for the premium services included with the card. Just saying.
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I maxed out my Mastercard at Tim Hortons, don’t care though as long as it helps to build a credit rating.
Maybe they will give me free donuts for life!
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TIM HORTONS NOW ACCEPTS VISAAAAAAAA!!!!!!!
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Rbc also offers MasterCard and visa.
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Also add Caisse Desjardins for VISA
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