MasterCard Vs Visa

June 30, 2011 by  Filed under: Debt 

MasterCard as well as Visa are two of the more popular credit cards, although Discover is also launching a strong push for consumer ownership with some of its fantastic bonuses, but currently the first two are used in more than 22 million outlets all over the world, so in terms of usage a Visa or a MasterCard is the one most vendors would accept.

But the question for many consumers is which to use, MasterCard or Visa?

Visa used to be the front runner, and for a time many outlets preferred Visa than MasterCard, but now things have changed, almost everywhere you go to both MasterCard and Visa are accepted in equal measure.

In terms of which is the best, they are both similar in what they offer especially on their rates of interest.

To determine which card you choose, it’s not so much dependent on the name in front of the card, if it’s a MasterCard or a Visa but the features offered by the offering bank, i.e. the interest rates, any cash back or rewards for utilising the card e.t.c.

Credit cards like Visa and MasterCard make their money from charging retailers for accepting the card, and since they are both after the same business their rates are more or less the same, and in turn the issuing bank can add further benefits such as air miles vouchers, money off grocery shopping, and reward related points which can be redeemed via a variety of ways, either from money off gas, or money off your weekly or monthly shopping, or promotional offers such as prize draws.

This works more or less like a loan to the consumer, as with any loan interest is charged on a daily or monthly basis, usually at the end of the month the interest charges are calculated and sent as a statement for the consumer, and a minimum payment for the following month is also attached to their credit card statement. Consumers usually chase the cards with the most appealing interest rate and promotional offer, i.e. some cards offer a promotional period where no interest is charged (usually about a year to 15 months), however the interest and charges can accumulate pretty quickly once that promotional period is over.

Although Visa is utilized more internationally than MasterCard, more and more retailers worldwide are beginning to accept MasterCard, so it’s not so much the type of card; unless of course it’s a prepaid credit card, which really acts more like a debit card (as long as there is a balance on the card), but the features on offer.

Visit Credit cards for bad credit for more about MasterCard Vs Visa

Article Source:
http://EzineArticles.com/?expert=Dan_Stevens

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