A payment card is present in the wallet of any modern person today. When it is issued in many banking institutions, they will offer you a payment system of your choice: Visa or MasterCard. For the correct solution, we find out what are their main differences. If you ask a question to an employee of a financial institution, basically the answer follows: "In general, there are no significant differences." To understand the nuances, you need to consider how the Visa and MasterCard payment systems work . Knowing their functional features will give a person the opportunity to make purchases without leaving home and without wasting his personal time.
If you use the cards of these systems without going abroad, then they do not have big differences. However, if the card is used in different countries of the world, then some features are detected.
What is the difference between a Visa plastic card and a MasterCard?
Payment systems are very similar to each other, but have some differences. If you look at the geographical possibilities of using bank cards, you can see: Visa stands out because it is popular and in demand in almost any corner of the world. Its share of activity in the world is about 57%, which is a very high indicator.
However, the second in terms of system indicators - MasterCard, are distributed by approximately 27%, and a large share falls on the countries of Europe. It is for this reason that it was believed that the first system is American, and the second is European, although this is not so. Both companies have main offices in the United States. The main currency of Visa plastic cards is the US dollar, and in MasterCard both the dollar and the euro can be used.
If the card is used when traveling abroad or for the purchase of foreign goods, then it is worth exploring the main characteristics and choosing the best option for yourself. But in your country it does not really matter which system you choose to use. However, it should be noted that if you withdraw money from the card in a foreign currency, then a mandatory conversion takes place. This must be remembered so as not to lose money. Well-known payment systems can be used almost anywhere in the world, which makes them reliable and universal.
Features of working with payment systems
If you need to cash in foreign currency, a process such as conversion takes place. This is a transfer of funds from foreign currency to state, in other words, to the currency of the country where you are at a given time. You can find out how the Visa payment system works by reading this article.
If your card was opened on the territory of Russia, then payments on it are made in rubles. Visa payment system is quite simple and convenient. For example, if you need to make a purchase in China and pay in RMB, then the conversion will take place according to the following rules.
Visa (payment system): currency conversion for the payment of goods and services
- Initially, the required amount of money in RMB will be converted into dollars by converting currencies at the official exchange rate in the Visa payment system.
- After that, the financial institution receives the required amount in dollars, and then converts it into rubles at its own rate.
- As a result, the resulting amount in Russian rubles will be debited from your account.
Knowing these rules will help you understand how the Visa payment system works.
Currency conversion in MasterCard system
The currency conversion process as a whole follows the same scheme as described above. But there is one point: in this system, the conversion is not in US dollars, but in euros. The rest of the procedure is identical. That is, we see that there is no fundamental difference when working with these payment systems. When choosing a card for yourself, be sure to consider how often you plan to leave the country, as well as make purchases in foreign currency. It is necessary to proceed from these life circumstances in order to make the right choice of a payment card.
Are Visa and MasterCard popular and why?
Using these plastic cards today, you can make many necessary financial transactions, which are mandatory for each of us. Payment systems provide convenient payment for various purchases and bills, and many customers have already appreciated this.
The nuances of working with these payment systems
All banks have different payment card service conditions. It depends on the laws and characteristics of each financial institution. If you are going to use the card exclusively in your country, then you should not choose an expensive option. And if you need to pay for purchases abroad, pay attention to the features and pricing of the bank.
Visa international payment system allows you to conduct financial transactions anywhere in the world. If you are a holder of a Visa or MasterCard system card, then when registering a new one, select the one that you do not have yet. In this case, in any country you will be able to use the optimal payment terms for goods and services. This is a topical issue for those who often travel or work outside the borders of their state.
Visa payment system in Russia and its prospects
In May of this year, the President of Russia adopted a law on the development and creation of the country's payment system. Now we can safely say that soon the problem with the work of Visa / MasterCard systems will be solved. The law already exists, which means that things are moving forward. In this situation, Western financial institutions will have to work under the new rules. A detailed answer to the question of how the Visa payment system works now can be found in the amendments to the legislation.
Whether this is a positive step, only time will tell, but everyone expected it. Visa payment system management expressed the opinion that the new rules of work may affect its ability to provide services in the Russian Federation. The company is ready to consider all proposals to find consensus and to continue high-quality and smooth operation. The Visa payment system in Russia plans to continue to work and find compromises with the government and new legislative amendments.
Types of cards of payment systems Visa, MasterCard
Any bank issues payment cards. Many of us today have this in our wallet. It is very simple to use, and you can not worry about cash. In addition to the different costs of issuing and servicing, payment cards have a different design and, of course, different functional characteristics. Having studied how the Visa payment system works, almost every client comes to the decision to become the owner of a plastic card, as it is profitable and reliable.
Cards can be debit or credit. The latter are distinguished by the fact that the bank's client can use the money in debt. This can be a car purchase or a consumer loan. The loan term, as well as the amount, depends on each client individually. Payment systems Visa and Mastercard as the main criteria put forward working age and the presence of an official place of work. In this case, you can count on a significant loan amount. The debit card is designed to use your own money, that is, purchases and payment for services at your own expense. Credit funds for this type of card are not allocated. Visa and Mastercard payment systems are very simple and convenient. They allow you not to carry large amounts of cash with you and not worry about them. This is a safe financial tool for many operations.