[Written By Andrew Kosome Akako]
Visa, MasterCard, American Express, Discover, JCB, and the rest aren’t mere brand names. All these have unique features and offers that differentiate them from one another. And this means you must know their dissimilarities to be able to choose the one that fits your needs. In this brief guide, you’ll learn the key differences between these payment networks/card issuers. Jump right in!
1. Credit Card Issuing
American Express doubles up as a payment network and card issuer. In this sense, it has the framework of processing credit card transactions as well as providing customers with the cards.
Contrary to this, Visa and MasterCard are only payment networks. This implies you can’t approach these firms if you need a credit card. Instead, you go to their associate banks, such as Capital One, Chase, or Bank of America, to apply for the credit cards.
2. Market Share
Given that American Express issues its own cards, you expect it to have a lower market share than both Visa and MasterCard. Only a handful of card issuers offer American Express Cards. For this reason, it’s no wonder that there are only about 54 million Amex cards in circulation in the US.
As for Visa, there are about 333 million cards within the U.S. MasterCard follows close behind at 243 million. This is because these two cards are issued by numerous banks and credit unions.
On the same note, Visa leads in purchase volumes and number of transactions year after year, followed by MasterCard and Amex in that order.
3. Local and International Acceptance
Roughly speaking, about 100,000 more merchants accept Visa and MasterCard compared to Amex. This shouldn’t be much of a worry, given that all cards boast a domestic acceptance of well over 10 million.
But if you’re planning to use your credit or debit card overseas, you’re better off with Visa and Master Card. In the international arena, acceptance of Amex is on average 38% lower. Meaning the likelihood of your Amex Card being declined by some merchants is higher.
4. Eligibility
Each of these cards has its unique series of eligibility requirements. For instance, American Express cards may require you to have a credit score of at least 670 to qualify. For this reason, they’re the hardest to qualify for.
The minimum credit score requirement for Visa and MasterCard varies significantly depending on the card issuer. Some accept very low credit scores.
5. Customer Service
In a 2020 study by J.D. Power, customers appeared to have the best satisfaction with Amex cards. Mark you, this isn’t an isolated conclusion. Numerous other surveys indicate that customers are endeared to American Express. Perhaps this stems from the fact that they’re both the payment network provider and the card issuer.
For Visa and MasterCard, you may never reach them directly for any grievances. Your bank always stands as an intermediary. And given that different banks have varying standards, that may be the reason for the lower customer satisfaction reports.
Conclusion
As you have noticed by now, American Express, Visa, and MasterCard have different beneficial features. No one can claim any one of them to be superior or inferior to the others. It all depends on your unique needs. So, analyze exactly what your transaction characteristics are before you settle on any of the credit/debit cards. Alternatively, sign up for all of them and enjoy all the benefits, while covering up for the individual shortcomings.