How the Visa payment system works. Payment systems Visa and Mastercard

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

A payment card is present in the wallet of any modern person today. When you issue it in many banking institutions, you will be offered a payment system to choose from: Visa or MasterCard. For the right decision, let's find out what are their main differences. If you ask such a question to an employee of a financial institution, the answer is basically: “In general, there are no significant differences.” To understand the nuances, it is necessary to consider how 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 their personal time.

If you use the cards of these systems without going abroad, they do not have big differences. However, if the card is used in different countries of the world, then some features are found.

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 geographic possibilities of using bank cards, you can see that Visa stands out because it is popular and in demand in almost every corner of the world. Herthe share of activity in the world is about 57%, which is a very high figure.

However, MasterCard, the second in terms of system indicators, is distributed by about 27%, and a large share falls on European countries. It is for this reason that the opinion has developed that the first system is American, and the second is European, although this is not so. Both companies have their main offices in the United States. The main currency of Visa plastic cards is the US dollar, and both the dollar and the euro can be used in MasterCard.

If the card is used when traveling abroad or for buying foreign goods, then you should study the main characteristics and choose the best option for yourself. But in your own country, it doesn't really matter which system you choose to use. However, it should be noted that if you withdraw money from the card in foreign currency, then a mandatory conversion takes place. This must be remembered so as not to lose money. The well-known payment systems can be used almost anywhere in the world, which makes them reliable and versatile.

Features of working with payment systems

If it is necessary to cash out funds in foreign currency, a process such as conversion takes place. This is a transfer of funds from a foreign currency to the state, in other words, to the currency of the country where you are at a given time. How the Visa payment system works, you can find out by reading thisarticle.

If your card was opened on the territory of Russia, then payments on it are made in rubles. The 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 to pay for goods and services

• First, the required amount of cash in yuan will be converted into dollars using currency conversion 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 according to its own rate.
• Ultimately, the resulting amount in Russian rubles will be deducted from your account.

Knowing these rules will help you understand how the Visa payment system works.

Currency conversion in the system MasterCard

The process of currency conversion as a whole follows the same pattern as described above. But there is one point: in this system, the conversion takes place 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 from these life circumstances that one must proceed in order to make the right choice of a payment card.

Are Visa and MasterCard popular and why?

With the help of these plastic cards, today you can make many necessary financial transactions that are mandatory for each of us. Payment systems provide the implementation of 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 conditions for servicing payment cards. It depends on the laws and characteristics of each financial institution. If you are going to use the card exclusively on the territory of 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 policy of the bank.

The international payment system Visa allows you to conduct financial transactions anywhere in the world. If you are the owner of a Visa or MasterCard system card, then when applying for 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 terms of payment for goods and services. This is an actual moment for those who often travel or work outside their state.

Visa payment system in Russia and its prospects

In May 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 the problem with the work of Visa/MasterCard systems will be solved soon. The law already exists, which means that things are moving forward. In such a situation, Western financial institutions will have to work according to the new rules. detailed answer tothe 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. The management of the Visa payment system expressed the opinion that the new rules of operation may affect its ability to provide services on the territory of the Russian Federation. The company is ready to consider all proposals to find a consensus and continue high-quality and uninterrupted work. The Visa payment system in Russia plans to continue working and find compromises with the government and new amendments to the legislation.

Types of cards of payment systems Visa, MasterCard

Any bank issues payment cards. Many of us today have one in our wallets. It is very easy to use, and you do not have to worry about cash. In addition to the different cost of issuance and maintenance, payment cards have different designs 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 differ in that the client of the bank can use the funds on credit. It can be buying a car or a consumer loan. The term of crediting, as well as the amount, depend individually on each client. Payment systems Visa and Mastercard put forward working age as the main criteriaand having a formal job. In this case, you can count on a significant amount of the loan. A debit card is designed to use your own money, that is, purchases and pay for services at your own expense. Credit funds for this type of cards 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. It is a safe financial instrument for many transactions.