How to Choose Between Visa and Mastercard Credit Cards

Plenty of the credit cards you’ll see in Canada have either two overlapping red and orange circles or an italicized VISA in the bottom right corner. These logos indicate two of the most popular credit card networks in Canada: Visa and Mastercard.

While both networks have a couple of small distinctions, overall, choosing the best credit card in Canada comes down to a card’s features, like its requirements, annual fee, rewards program, coverage, and perks. Ideally, you’ll want to select a credit card that complements your spending habits – whether that card is networked by Visa or Mastercard is more of an afterthought.  The only notable exception is Costco, where only Mastercard is accepted in-store in Canada. Otherwise, your focus should be on the card’s value, not its network.

Therefore, instead of focusing on how to choose between the best Visa credit cards and the best Mastercard credit cards, learn how to pick the best contender to fit your financial lifestyle.

In this blog post, we’ll still break down the subtle differences between Visa and Mastercard. By doing so, you’ll be able to narrow your options.

Background

Visa and Mastercard are processing networks, meaning they more so manage the processing of your credit card payments, rather than the actual features of your card. 

Typically, the credit card issuer is responsible for your card’s annual fee, interest rates, rewards program, coverage, and perks – though some network-level perks may apply per card tier (we’ll cover this in a later section). 

Credit card issuers include banks, credit unions, and sometimes specific stores.

Acceptance

Overall, both Visa and Mastercard credit cards are widely accepted in Canada and internationally, especially when compared to credit cards networked by American Express.

If you shop with your credit card at Costco warehouses, note that only Mastercard is accepted in-store in Canada. Visa credit cards are acceptable for Costco.ca purchases.

By this logic, then, Mastercard is technically more widely accepted than Visa in some everyday scenarios, like weekly Costco runs.

Card Tiers

Both Visa and Mastercard have their own card tiers that determine some additional perks and coverage.

Common Mastercard card tiers include:

• Standard: classic Mastercards, typically more affordable and straightforward
• World: comes with exclusive benefits and higher annual fees
• World Elite: the most premium option with impressive perks and usually higher fees and annual income requirements

Visa card tiers include:

• Classic: standard, convenient, reliable, widely-accepted
• Gold: a step up from classic with preferred services, security, and recognition 
• Platinum: higher spending limits, more prestige
• Infinite: access to exclusive experiences and benefits
• Infinite Privilege: best purchasing power and premium perks and experiences (but typically higher annual fees and income requirements)

Benefits

Some Visa and Mastercard tiers tack on their own benefits. Top-tier Visa and Mastercard credit cards, like those of the Infinite Privilege or World Elite variety, tend to come with airport lounge access, for example. While the specific lounge access may differ by network and issuer, both Visa and Mastercard have some solid contenders when it comes to this exclusive perk. 

Read More: Best Lounge Credit Cards in Canada

These high-ranked options also tend to have more insurance coverage than their lower-tier counterparts. 

To properly compare perks, coverage, rewards, interest rates, and annual fees between Visa and Mastercard credit cards, check out our side-by-side card comparison tool.

Remember to always base your decision on the individual cards themselves, rather than their network or network tier. 

Spending Profiles

While both networks have cards that are ideal for travel and everyday purchases, in general, one network might cater more towards a specific spending profile than the other.

For travel, you’ll find that our list of of best Canadian travel credit cards often come from the Visa network. This is mostly due to their international acceptance paired with exclusive perks like no foreign transaction fees.

Read More: Best No Foreign Transaction Credit Cards in Canada

For everyday purchases, like those made at Costco, you might gravitate towards Mastercard credit cards, especially those with high-earning potential. Mastercard also has some of the best cashback credit cards on the Canadian market.

The Verdict

There are certain aspects of both Visa and Mastercard credit cards that may make you lean more towards one or the other. The truth is, however, that these aspects – like the rewards program, the added benefits, and the insurance coverage – should be the first thing you look at when choosing your ideal card, not the processing network.

For educational purposes though, this post gives you a deeper insight into what you can expect to find on Visa and Mastercard credit cards as well as a couple of cards worth considering from each network.

At the end of the day, it is best to base your application on the card itself rather than where it comes from.