Visa or Mastercard, Mastercard or Visa?

Visa or Mastercard, Mastercard or Visa? That is the QUESTION for so many young people who want their first credit card.

Visa and Mastercard are the two largest credit companies in the whole world. If you don't know, their job is to MOVE the money. They move the money of your card's issuing bank to pay for what you bought using your card so that you can pay your bank when you are billed. Simple, easy, done. But now, which one? They both get the job done, so we have to look at other deciding factors.

Acceptance

Both Visa and Mastercard are very large companies so acceptance is fairly widespread. It's pretty much a neck and neck competition between the two. Last 2017, Visa reported a revenue of USD18.358 billion while Mastercard reported USD12.497 billion (both numbers were taken from NASDAQ and the United States Securities and Exchange Commission). The two are not that far apart, especially when considering how there are several other credit companies like Discover, Diner's Club, and American Express. In the Philippines these two will be the most widely accepted and used. From my own experience, only luxury department stores like Rustan's Department Store and the more prestigious SM malls will accept other credit brands.

Perks, privileges, and benefits

Like with widespread acceptance, Visa and Mastercard feature relatively the same perks and benefits. The ONLY DIFFERENCE is how these are divided into different tiers or levels. Please remember that the previously published article on credit card tiers refers to tiers as determined by issuing banks. The credit tiers as determined by the credit companies are quite different from the bank tiers.

With Visa, there are:

-Classic

-Gold

-Platinum

-Signature

-Infinite

While with Mastercard, these are:

-Classic

-Gold

-Platinum

-World

-World Elite

Most of the time, the Platinum tier cards will grant you access to a concierge service as well as elite level customer service. There is also the matter of more offers and promos as you climb higher up the ladder. Some are reserved for the very top.

One thing I am sure that you, dear readers want to know is that there is only one World Elite Mastercard available in the Philippines. This is BDO's World Elite Mastercard and it is a by invitation only product. Visa though, has the Visa Infinite available in RCBC Bankard's Visa Infinite and the Citi Prestige Card, both of which you can apply for. East West Bank also has the Visa Infinite, but this is a by invitation only card and I have absolutely no information about it.

To compare,

Annual fee
PhP12000	USD1500	PhP3600
Annual income requirements
PhP1000000	By invitation only	PhP500000
Perks and Benefits
-Prestige membership with Priority Pass (unlimited lounge access) -Free rounds of golf (anywhere in the world, 3 per year) -Free airport meet and greet services (twice a year) -4th night for free at participating hotels -Visa Concierge access -Exclusive travel and shopping packages and opportunities from Visa	-Lounge Key membership (10 free airport lounge visits per year) -Complimentary limousine service (once a year) -Exclusive travel and shopping packages and opportunities from Mastercard -Access to the Mastercard Concierge	-Basic Priority Pass membership (USD17 per lounge visit) -5% rebate on all clothing and apparel purchases -Visa Concierge access -Exclusive travel and shopping packages and opportunities from Visa

What might surprise you is how the highest cards for several banks are World Mastercards. For example, Security Bank's World Mastercard has an even higher income requirement than RCBC Bankard's Visa Infinite and Citi's Prestige Card of PhP1.3 million. The East West Bank's Platinum (not  World) Mastercard has an even higher requirement of PhP1.8 million. And that's not the last. Metrobank's World Mastercard needs you to prove that you earn at least PhP5 million annually!

For your first credit card

Both Mastercard and Visa have equal footing in the Philippines. For your decision, I would suggest awareness first. Be aware of your own spending habits and preferences. If you do, you can maximize the perks and benefits that come with the different cards. For example, BDO has several available Mastercards. Most of these feature partner merchants, i.e. Bench which rewards you when you use your BDO Bench Mastercard for transactions with Bench. If you are more widespread in your shopping habits, the Metrobank Robinsons Mastercard Classic will be more suitable.

Are you an avid reader or maybe some kind of bookworm? Then maybe the best choice is RCBC Bankard's Fully Booked Mastercard.

Are you a vehicle enthusiast? Then why not the Citi Shell card?

So now, I am sure you can see that the key factor is yourself. You must know yourself and what it is you spend on most. That way, you can indeed maximize how credit products will reward you. Remember that you are ALWAYS the one who shapes your identity. Your identity will shape your financial needs, and that will include credit products.

Thank you for reading my blog. Feel free to comment. I read all my comments.

*All images here were just taken from the internet with the assumption that they are in the public domain. This blog was written with no intention of damaging anyone's public image, just sharing my opinion.

Philippine Credit Cards