Difference Between Visa and American Express (With Table)

A credit card is a financial tool that provides loans, debt to its consumers and allows them to repay the provider in future data through instalments. Credit cards let consumers make purchases everywhere and at any time without carrying any cash. Visa and American Express credit cards are accepted in many countries. These cards provide similar services but differ in merchant fees.

 Visa vs American Express

The difference between Visa and American is that Visa is a payment processing network that only processes transactions among the credit card issuers and potential customers, whereas American Express issues credit cards to its customers and also handles payment processes. Visa cards are widely accepted internationally than American Express cards because it charges more merchant fees and processing fees.

Visa cards come in three forms credit, debit, and prepaid cards. These cards are issued by other banks like Bank of America, Chase, Capital One, and others. It has various schemes, rewards for its customers. It provides different types of cards like Visa Classic, Gold, Platinum, Infinite, and Signature that provide rewards and benefits to different customer categories.

American Express itself operates as a bank and issues cards to its customs. It has seven different card types based on the annual income range of its customers. Each card provides various benefits and rewards. They are American Express platinum card, Gold, Membership reward card, smart earn credit card, platinum reserve credit card, platinum card, and platinum travel card. It is only accepted in a few countries.

Comparison Table Between Visa and American Express

Parameters of ComparisonVisa American Express  
Type of CompanyVisa is a global payment technology company that processes payments among banks, financial institutes, and customers.American Express is a financial and travel services corporation in America that issues cards as well as processes payments.
HeadquarterSan Fransico, United StatesNew York, United States
FounderDee HockWilliam Fargo, John Butterfield, and Henry Wells
International AcceptanceWorldwideIt is accepted only in 130 plus countries.
Eligibility criteriaIt has flexible eligibility criteria to attract small, and large corporations.It has strict criteria and only rich people can afford it.

What is Visa?

The Visa company was started in 1958 by Dee Hock when Bank of America started a credit card program for small and medium-sized organizations. It then expanded internationally in 1974. It has acquired Visa Europe. Earlier, Visa was known as BankAmericaCard. Today, Visa is accepted in two hundred plus countries and territories. It provides many banking services, products. It also provides online services to its customers.

It has a mobile platform that allows its customers and merchants to process their transactions with ease. Visa is a payment processing company, and it charges different fees based on the card issuer policies. Top Visa Card issuers are Bank of America, Capital One, Chase, SBI, and others. It distributes different card types like Visa Gold, Platinum, Infinite, Classic, and Signature with attractive rewards, credits, insurance, and other benefits to its customers. Visa card is widely accepted cards and help customers to go cashless everywhere.

Visa also act socially responsible by providing free education and services to small and medium-sized organization and helping them to grow business. It empowers women by allowing them to do business with financial support. It uses Artificial intelligence, neural network technologies to reduce card frauds and protect consumer data from cyber attacks.

What is American Express?

American Express was started in 1850 as a freight forwarding company. Later in 1950, it began to provide financial services and travel services. It made purchases convenient through its credit card. American Express is one of the widely accepted payments and credit card issuing companies. It also initiated a small business payment network to support small business owners and provided them with offers to grow their business.

In 2010, the company started to encourage Americans to shop in small businesses and offered them rewards through Small business Saturday. The American Express schemes and reward programs benefit both the customers and merchants. By 2017, it had adopted It technologies, created an application to allow its customers to process transactions online. It has created many digital initiatives to improve its services and reach global customers.

American Express provides similar services to its customers like other cards, but it charges more initiation fees. There is a high chance to earn reward points, but at the same time, these rewards will be of no use because of annual fees. American Express is not accepted by many merchants, and only high-status people can afford it. American Express provides guidance, insurance, and protection from fraud to its customers.

Main Differences Between Visa and American Express

  1. Visa is a payment processing company that acts as a medium among banks, merchants, and customers. On the other hand, American Express is a financial service provider, card issuer and provides travel packages to its customers.
  2. Visa charges processing fees based on its merchants and is less compared to American Express.
  3. Visa charges low-interest rates to help small and medium-sized organizations to grow their business, While American Express charges high-interest rates.
  4. Visa is accepted by global merchants worldwide compared to American Express.
  5. Visa provides concierge services to its customers, whereas American express provides this service only to premium credit cardholders.

Conclusion

Both Visa and American Express are top competitors in the credit card industry. Visa and American Express companies update their policies, create new schemes, offers to attract their customers. They meet all the governance compliances and also act socially responsible. They protect customers and cards from frauds and scams.

However, American Express cards are not widely accepted by merchants especially, in Asia. Visa and other cards attract small and medium-sized organizations with flexible eligibility criteria and an easy process to grow business.

References

  1. https://www.visa.com.my/
  2. https://www.americanexpress.com/en-in/?inav=NavLogo
  3. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.136.5432&rep=rep1&type=pdf#page=40
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