Market Share by Credit Card Network

The best credit card for study abroad is the Bank of America Travel Rewards credit card for Students because it has a $0 foreign transaction fee, a $0 annual fee, and good rewards. Cardholders earn 1.5 points per $1 spent normally, plus an initial bonus of 25,000 points for spending $1,000 in the first 90 days.

If you're going to spend most of your time in a foreign country in the near future, you definitely want a card that won't charge you extra on international purchases. But there are actually several options that may be best, depending on your individual needs and wants.

Best Credit Cards for Study Abroad in 2023

All of these cards are strong contenders to be the best credit card for study abroad. That's especially true considering they offer a lot more than rewards and low fees. You'll also receive perks like travel insurance to give you even more peace of mind when you set out for your new home for the semester.

The difference between a credit card issuer and a credit card network is what functions each serves. A credit card network mainly facilitates transactions and determines where cards can be used, while an issuer provides cards to consumers and chooses cards' terms, requirements and perks.

There are only four major credit card networks in the U.S.: Visa, Mastercard and American Express. But there is a multitude of credit card issuers – any bank or credit union that offers a credit card is an issuer. Some popular credit card issuers include Capital One, Chase, Wells Fargo, Navy Federal Credit Union, Bank of America and many more.

There are quite a few other functions that separate credit card issuers from credit card networks, too. Below, you can find a comparison of the responsibilities of each.

Credit Card Issuer vs. Credit Card Network

Now that you know the main differences between a credit card issuer and a credit card network, here's where things get a little bit tricky. Some credit card networks are also credit card issuers – namely, American Express. This company performs all the functions of a credit card network, but it also issue its own cards. So being a credit card network and being a credit card issuer are not mutually exclusive.

You can learn more about the major credit card companies on WalletHub.

A credit card issuer is a financial institution that provides credit cards to consumers. Credit card issuers manage the credit card application process and choose the cards' terms, requirements and perks.

There is a multitude of credit card issuers – any bank or credit union that offers a credit card is an issuer. Some popular credit card issuers include Capital One, Chase, the Navy Federal Credit Union and many more.

What a Credit Card Issuer Does

• Provides cards to customers and handles applications.
• Decides the requirements to qualify for a card.
• Sets the terms on cards (APR, fees, credit limit, etc). 
• Chooses what rewards and benefits cards have.
• Handles customer service for the card.

You can learn more about the major credit card issuers on WalletHub.

Visa is bigger than Mastercard based on cards in circulation, purchase volume, and merchant locations. Mastercard has a larger reach than Visa, though, because Mastercard is accepted in over 210 countries and territories compared to Visa's 200+ countries and territories.

Whether you are using a Visa or Mastercard, there is a high likelihood that your credit card will be accepted wherever you take it. There is little practical difference between the two networks for consumers.  

Visa vs. Mastercard: Which Network is Bigger?

Sources: Nilson Report (Feb. 2022), Mastercard and Visa

Market Capitalization of Visa vs. Mastercard

You could also use market capitalization as a metric to determine whether Mastercard or Visa is a bigger company. Investors in particular may be interested in market capitalization, which is the value of a company on the stock market.

Visa has a bigger market capitalization, at $485.30 billion, compared to Mastercard's $357.62 billion (as of February 1, 2023). In addition, Visa has historically been the larger of the two, though Visa became a publicly-traded company in 2008, two years after Mastercard.  

Despite differences in market size and international acceptance, both networks are accepted by nearly every vendor who accepts credit cards as payment in the U.S. Ultimately, it won't matter to most cardholders if they have a Mastercard or a Visa. While Visa is bigger by most metrics, there is virtually no other reason to seek out Visa over Mastercard, as they are functionally the same. So, you're better off looking for the best credit cards from each network before you start applying.

The most widely accepted credit card brand is Mastercard, which is accepted in 210+ countries and territories. Virtually all merchants that take credit cards in those countries and territories will accept Mastercard, though there may be rare exceptions.

Most Widely Accepted Credit Card Brands

• Mastercard: 210+ countries and territories, nearly all merchants
• Visa: 200+ countries and territories, nearly all merchants
• American Express: 198 countries and territories, less merchant coverage than Mastercard and Visa

If you plan to use your card only within the U.S., almost all merchants should accept cards from all four major credit card networks. If you plan to use your card abroad, Mastercard and Visa are generally your best bet, though Amex cards can be fine as well depending on where you travel.

A credit card network mainly authorizes and processes credit card transactions, as well as determines where credit cards can be used. There are only four major credit card networks in the U.S. (Visa, Mastercard, American Express, etc.) and some of them, like American Express, are also credit card issuers.

When you make a purchase using a credit card, payment processors use a card network to communicate transaction information between the merchant's bank and the credit card company that issued your card. The card networks also offer benefits to cardholders, and help monitor and prevent fraudulent transactions.

How Credit Card Networks Work

• Facilitate transactions between the merchant and the issuer of a credit card.
• Decide where credit cards can be used.
• Provide supplemental benefits like travel insurance or purchase protection.
• Monitor transactions and work on fraud prevention.
• Create rules for credit card manufacture and usage.

It's also worth noting that Visa and Mastercard are the two largest card networks, boasting a significant advantage in terms of worldwide acceptance. More specifically, they are accepted by more than 10.7 million merchants in the U.S. and more than 200 countries and territories, internationally.