MasterCard v/s or Visa Card

Whenever we apply for a credit card, we are sometimes asked by the credit card bank or credit card organization about which brand of credit card should we opt for? - a MasterCard or a Visa or sometimes even an American Express (AMEX) card.
It is important to understand that Visa & MasterCard are payment systems instead of credit cards by themselves and they rely on banks all around the world to issue credit cards that use their payment system. From this they take a % of the amount charged to retailers to take payments via these cards. In return the retailers get a certain degree of assurance that the goods / services they have sold will be paid for. The shopkeepers or establishments also have to have the credit card payment acceptance, otherwise the customer will not bring any business to them.
American Express are slightly different in that they run their own payment system and issue cards themselves - both charge cards and credit cards.
So the big question that a credit card customer might face is which type of credit card do you choose?

Visa

Visa is probably the largest payment network in the world with a claimed 20 million outlets in 150 countries around the world accepting a Visa credit card. Visa is issued by 20,000 banks and there are over 1 billion cards in circulation

MasterCard

MasterCard is fast becoming the number 1 payment system in the world. with 25,000 banks issuing cards and cards being accepted in 210 countries around the world. There are an estimated 22 million locations around the globe where mastercard is accepted.

Amex

American Express operate in 130 countries around the world and is one of the most famous names in financial services. It is also the worlds largest travel agency,

So which do you choose? We'll the choice between Visa and MasterCard is easy. Don't have any choice. Both visa and MasterCard are widely accepted all around the world and you’re unlikely to find too many outlets that will accept Visa and not MasterCard and vise versa. Some UK banks give you the option of choosing either and some may only offer a Visa or MasterCard - decide on the values of the card itself - interest rates, cashback etc rather than whether its a Visa or MasterCard.

With American Express it’s more difficult choice. Its not a widely accepted as Visa and MasterCard in the UK although the number of outlets are growing. But if you like the products and services offered by Amex then don't feel put off by this. most major shops and restaurants accept the card and if you travel abroad regularly it can be used in most places - especially in the USA.

Link to previous articles: Lloyds TSB Platinum Card Cahoot Credit Card Halifax Credit Card Post Office Credit Card Goldfish Credit Card Buy & Fly Credit Card