Does Visa or MasterCard have better foreign exchange rates?
All else being equal (leaving aside card fees/rebates/benefits), MasterCard does generally provide the best exchange rates for the cardholder.
If you have a Visa card, you'll pay the Visa exchange rate and Mastercard holders will pay Mastercard's exchange rate. In general, Mastercard tends to offer a marginally better exchange rate than Visa. That means your holiday spending will be slightly cheaper with a Mastercard credit card than a Visa credit card.
| Card | Exchange rate | APR |
|---|---|---|
| Santander All in One Credit Card | Mastercard rate | 21.9% |
| Bip Cardless Credit | Mastercard rate | 29.9% |
| Zopa Credit Card | Visa rate | From 24.9% |
| Metro Bank Credit Card | Mastercard rate | 14.9% |
Visa and Mastercard are the two largest card networks in the world, accepted in more than 200 countries and territories. Mastercard credit cards are more widely accepted internationally, while Visa cards tend to offer more benefits. But for most consumers, there is no practical difference between Visa and Mastercard.
Worldwide acceptance
According to Visa, cards issued through its payment network are accepted in 200 countries and territories around the world. Meanwhile, Mastercard reports acceptance in 210 countries and territories around the world.
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.
- SBI Elite Credit Card. ...
- IDFC First Wealth Credit Card. ...
- HDFC Diners Club Privilege Credit Card. ...
- RBL World Safari Credit Card. ...
- AU Bank Zenith+ Credit Card. ...
- InterMiles HDFC Bank Signature Credit Card.
Visa and Mastercard both charge a fee of 1%. Regardless of the type of credit card, this fee is applied to all transactions. Issuing bank fee: Depending on the credit card you use — such as Citibank, Chase or Barclays — some issuers add a charge on top of the network fee, usually around 2%.
Contact a bank or credit union to make sure it has the currency or will accept foreign currency, and check what the fees are. Find exchange rates through your bank, credit union or websites such as xe.com. Check the bank's exchange rate to make sure it's fair.
Visa sets different exchange rates for all foreign currencies, and they can change daily. Visa also has an online exchange rate calculator, so you can keep up to date with any rate changes. The exchange rate is automatically applied to any foreign transaction using a Visa credit card.
Does Europe prefer Visa or Mastercard?
Across all considered European payment figures, Visa outperforms MasterCard.
Debit cards with a Mastercard or Visa logo are widely accepted in Europe. American Express is somewhat less common, except at tourist destinations. Most banks charge a foreign transaction fee and/or a currency conversion fee, so it is worth double-checking these costs before departure.
Visa and MasterCard charge a 1% currency conversion fee to the card issuer. The issuer has the option to pass along that fee, along with any additional fees it decides to add, and call the whole thing a foreign transaction fee.
They operate on different payment networks
The biggest (and most obvious) difference between Visa and Mastercard is that they operate on totally separate payment networks. While a bank might issue both Visa and Mastercard branded cards, they are processed using different systems.
| Credit Card | Joining Fees | Rewards |
|---|---|---|
| Club Vistara IndusInd Explorer Credit Card | Rs 40,000 | Get 8 Club Vistara points per Rs 200 spent on website, 6 points for travel, 2 points on other spends, and 1 point for utility bills |
| IDFC First Wow Credit Card | Nil | 4x rewards on all spends |
Your Citi® Visa® card is being reissued as a Citi® Mastercard as part of a larger effort to offer a more consistent experience across many of our products and to look for new ways to enhance your experience in the future.
International merchants with credit card terminals will almost always accept Visa or Mastercard, issuers with strong international payment networks. Unfortunately, American Express and Discover can prove finicky abroad, as these two issuers have less robust payment networks outside the United States.
However, the main difference between Visa and Mastercard is that Mastercard is more widely accepted internationally, while Visa offers more credit card benefits. Visa and Mastercard are two of the largest payment networks in the world, but neither Visa nor Mastercard issues any cards.
Which is more secure? Both Visa and Mastercard offer zero fraud liability for all cards, which means that any user who is victim to fraud, theft, or breach of data will not be liable for the lost money. Both networks are generally considered to be secure, but use different methods for securing your data.
- Wise - debit card.
- Revolut - debit card.
- Travelex - prepaid card.
- 28 Degrees Platinum - credit card.
- Bankwest Zero Platinum Mastercard - credit card.
Do credit cards give good exchange rates?
“The reason you get a favorable exchange rate with a credit card is the issuer is operating at much more scale and they're able to do a large volume of transactions,” said Greg McBride, the chief financial analyst at Bankrate, a personal finance site.
- Open a Credit Card Without a Foreign Transaction Fee. ...
- Open a Bank Account Without a Foreign Transaction Fee. ...
- Exchange Currency Before Traveling. ...
- Avoid Foreign ATMs. ...
- Ask Your Bank About Foreign Partners.
While you'll always need some cash, using a credit card for your spending needs can significantly simplify overseas travel. You won't really have to deal with converting currency and, armed with the right credit card, you won't pay unnecessary foreign transaction fees.
Though there may be a small fee if you exchange less than a certain amount, your bank or credit union will almost always be the cheapest place to exchange currency. You may be able to order currency at a branch location, by phone, or online to have it delivered to you or to pick up at a branch.
It's often more cost-effective to exchange a small amount of euros in America for initial expenses and then withdraw euros from ATMs in Europe for a better exchange rate and lower fees.
