Visa Vs. Mastercard: The Main Differences

Back in 1958, the Bank of America launched the first general purpose credit card—known as the BankAmericard. Around this time, the only credit cards available were issued by retailers or used for specific purposes (e.g. a Diner’s Club restaurant card). The idea gained traction and other institutions began issuing their own BankAmericards, resulting in the creation of the National BankAmericard, Inc. This corporation, created in 1970, was equally owned by all the BankAmericard issuing banks in the U.S.

In 1976, BankAmericard officially rebranded as Visa—two years after its international expansion in 1974. The next major development for the credit card company was its global merger in 2007 followed by its Initial Public Offering (IPO) in 2008. Visa Inc. currently trades on multiple stock exchanges with a market cap of nearly $710 billion ($521 billion USD).

The below financial institutions in Canada issue Visa Cards:

• Bank of Montreal (BMO)
• Canadian Imperial Bank of Commerce (CIBC)
• Dejardins
• Home Trust Company
• Laurentian Bank
• Royal Bank of Canada (RBC)
• Scotiabank
• Simplii Financial
• TD Canada Trust
• Vancity

Visa’s Infinite and Infinite Privilege cards are the top-tier cards the credit card network offers. Though banks typically set their own rates and perks for each card, these types of cards come with distinct features set by Visa.

The Visa Infinite series carries a number of perks related to travel and lifestyle, such as a complimentary concierge service, hotel benefits through the Visa Luxury Hotel Collection and a number of benefits related to Canadian golf clubs and wineries.

The Visa Infinite Privilege comes with similar benefits, but on a more luxurious scale. Cardholders still get access to myriad hotel and travel perks, but with the added benefit of access to over 1,200 airport lounges across Canada, for example.

Note that both cards come with zero liability insurance and emergency cash and card replacement services. Cardholders with either Visa card type also have access to Visa-exclusive offers and promotions through the credit card network.

Mastercard has a similar origin timeline to Visa, in that the credit card company started among a group of retail franchises working with banks to accept cards as payment at certain local stores. In 1966, one of these groups started the Interbank Card Association (ICA), an association that was run by multiple member committees which established rules for settlement, clearing and other aspects of the credit card organization.

Jump ahead two years to 1968, and the ICA made alliances with Mexico, Japan and various countries in Europe. Into the late 1970s, the ICA had members from all around the globe, and as such, decided to change its name to MasterCard International.

In 2002, MasterCard merged with EuroPay International and converted from a membership association to a private share corporation. This change was made—in part—to prepare the company for its IPO in 2006. Mastercard currently trades on multiple exchanges with an estimated market cap of $386 billion (USD).

The below financial institutions in Canada issue Mastercards:

• ATB Financial
• Bank of China (Canada)
• Bank of Montreal (BMO)
• Brim Financial
• Canada Imperial Bank of Commerce (CIBC)
• Capital One
• Dejardins
• HSBC Bank Canada
• MBNA
• National Bank of Canada
• Royal Bank of Canada (RBC)
• Servus Credit Union
• Tangerine
• TD Canada Trust

Mastercard’s World and World Elite tiers are the highest benefit programs that Mastercard offers, with perks unique to these two card types—regardless of what reward system the issuing bank may decide to use.

Both World and World Elite cards come with benefits related to travel and lifestyle, such as complimentary Boingo Wi-Fi hotspots worldwide, automatic cash back on eligible travel and dining purchases and access to over 1,300 travel lounges with Mastercard Travel Pass from DragonPass. The World card series also has access to a number of on-demand and subscription services from a number of apps (terms and conditions apply).

Both card tiers also come with zero liability insurance, extended warranty on eligible purchases made with a Mastercard and 90 days purchase protection—among other benefits. Note that some World benefits are specific to certain financial institutions.

Comparing Visa to Mastercard (MC) to determine which card type is better for your wallet is a bit of a category error. Visa and MC are credit card networks, meaning they are responsible for building and maintaining the technology of the credit card the bank is issuing to its customers—not necessarily the benefits behind it. Determining the benefits of each card type is up to the financial institution that is offering the credit card product, also known as the issuer.

That said, the differences between Visa and MC is a valid inquiry worth pursuing, as there are some network-specific benefits consumers should be aware of.

Aside from the number on your credit card starting with a four for Visa instead of a five for Mastercard, Visa and Mastercard do come with differences unique to each network.

For one, Visa’s network-specific benefits are more bespoke for frequent travelers and those with related hobbies (e.g. golf and wine tasting). While Mastercard does offer similar benefits through its World program, it does not offer any many benefits that are travel-related.

Visa and Mastercard are also not accepted at every merchant you may shop at, though they are much more commonly used than American Express. Costco, for instance, does not accept Visa as a form of payment at its warehouse stores or gas stations—though it is accepted at Costco.ca.

A key difference between Mastercard and Visa is which financial institution it is offered through. Though both cards are nearly ubiquitous across Canada there are some exceptions. With banks offering bundle-focused promotions that can save you money if you open an account and get a credit card with them, it’s worth knowing which card type they offer.

When choosing to add a Visa or a Mastercard to your wallet, the focus should be more on the financial institution issuing it and the set of offers and benefits that institution offers on that specific card rather than the credit card network that the card operates on. The best approach is to compare the various types of credit cards offered by each network, and find one that is tailored to your specific spending and lifestyle needs.