Features & Similarities of Visa & Mastercard | SBI PO Prelims & Mains Preparation - Bank Exams PDF Download

Introduction

Visa Card

• Visa card is a payment network company which transfers the fund electronically all over the Globe. 
• It is the first multinational financial service provider company in California, the USA in 1958. 
• It also provides many financial services like a credit card, debit card and prepaid card to clients. 
• It collaborates with the financial institutions like banks to cater the services under their company name. 
• The interest charges, transaction fees are decided by the bank or financial institutions, not by the network company. 
• The payment technology network charges some percentage to the issuing company. And this is the source of income for them.

Master card

• The master card company is located in New York, USA since 1966. 
• This company is earlier known as Interbank or Master charge. 
• It is a multinational payment technology network company which provides financial services to the customers. 
• It is processing payment company. 
• It also provides the services like a debit card, prepaid card, charge card, under their company name. 
• The company doesn't directly interact with the customers, it collaborates with the banks and financial institutions to serve the benefits.

Features & Similarities of Visa Card and Master Card

• Easy Payments: By using both these cards, the customer can easily make a payment just by tapping the card to a compatible reader. This will ease the life of customers.
• Cards: They provide a variety of cards like a standard card, premium card, Platinum card, signature card and many other.
• Services: It provides the various types of offers and services like global customer assistance, complimentary services, facilities at stores and at hotels, shopping offers, discounted services to special cardholders.
• Protection: Both this card protects the online transactions in a very safe and secure way.

How They Make Money

• Issuer fees: They charge from bank or financial institutions for using their payment technology network.
• Settlement fees: Card issuer pat the fees while doing settlement.
• Overseas fees: They charge fees for international settlement. They charge somewhat more for foreign currency transactions.