Discover vs. Visa

The difference between Visa and American Express is that American Express is both a card issuer and a payment network, while Visa is only a payment network. Visa is also more widely accepted than Amex, as Visa cards work in over 200 countries and territories, compared to 160+ for American Express cards.

Differences Between American Express and Visa

For merchants, the biggest difference between American Express and Visa is how much they charge a merchant for processing payments. Amex processing fees are on the higher end, while Visa's fees are on the lower end.

Although there are a handful of big differences between American Express and Visa, most people will not be affected unless they travel abroad, as Amex has less acceptance outside of the U.S. than Visa. Otherwise, for the average cardholder, there are far more similarities between the two payment networks than differences.

The main difference between Visa and Mastercard is that Mastercard is more widely accepted internationally, while Visa offers more standard credit card benefits. Most people won't notice any difference between Visa and Mastercard because their services are largely on par. Visa and Mastercard are two of the largest payment networks in the world, but neither Visa nor Mastercard issues any cards. Banks and credit unions issue the cards, which are then used on the Visa or Mastercard network.

Visa and Mastercard Differences by the Numbers

Both Visa and Mastercard ensure basic benefits with their credit cards, such as zero liability guarantees and lost card reporting. Additional perks may be available, depending on the credit card tier. Mastercard offers three benefit tiers with their cards: Standard, World, and World Elite. Likewise, Visa cards are split into Traditional, Signature, and Infinite.

Visa and Mastercard Basic Benefits Compared

On top of the standard benefits, World or World Elite Mastercard holders may get extra perks such as cell phone insurance and free hotel upgrades. On the other hand, people with a Visa Signature or Infinite card may enjoy special protections like lost luggage and trip delay reimbursement. However, having a top-tier Mastercard or Visa card won't automatically give you access to all of these extra benefits, as that depends entirely on the credit card issuer.

Whether a card bears the Visa or Mastercard logo doesn't make much of a difference in the end. The credit card issuer determines all the most important aspects of the card: interest rates, fees, and rewards. When picking a credit card, you should pay more attention to these features than the payment network.

A Visa can be any type of credit card, from a secured credit card for building credit to an unsecured rewards credit card for people who already have excellent credit. Visa is a credit card network, which means it dictates where cards issued by banks and credit unions can be used. All Visa credit cards operate on the Visa network and are accepted by most merchants across more than 200 countries and territories.

Visa does not issue any credit cards by itself. Instead, as one of the largest payment networks in the world, Visa partners with banks and credit unions to process transactions. Visa partners with institutions like Chase, Bank of America, Capital One, and U.S. Bank, among others. Visa, like other credit card networks, also guarantees some benefits, depending on the type of card you have.

Types of Visa Credit Cards

Visa Traditional

Visa Traditional credit card benefits are on the lowest benefit tier set up by Visa. They offer benefits such as zero liability for fraudulent charges, lost or stolen card reporting, emergency card replacement and cash disbursement, and roadside dispatch.

Visa Signature

Visa Signature credit card benefits include all the Traditional-tier benefits, as well as added perks such as travel and emergency assistance. Signature cards are also more difficult to get, as most of them require an above-average credit score.

Visa Infinite

Visa Infinite benefits include all the perks offered by Visa Traditional and Signature credit cards. In addition, Infinite cards have significantly improved travel benefits, including a Global Entry statement credit, rental car discounts, and access to more than 1,200 airport lounges when you fly. Some of these enhanced perks may be available on certain Visa Signature cards, but you're much more likely to find them with Infinite cards.

Finally, it's worth noting that not all Visa cards offer the same features. The card issuers themselves can limit which Visa benefits apply to each card. They also decide many of a card's most important features, such as interest rates, fees, and rewards. You can compare the best Visa credit card offers on WalletHub.

A Visa credit card is a payment card that operates on the Visa network. Visa partners with banks and credit unions, and these financial institutions offer Visa-branded credit cards to consumers and small business owners. Visa also helps authorize and process transactions involving cards affiliated with the Visa network.

Popular Visa Credit Cards

It's important to note that Visa doesn't actually issue credit cards. As a network, Visa dictates where a credit card can be used and what benefits it provides.

Visa credit cards come in three benefit tiers: Traditional, Signature, and Infinite. Traditional benefits are standard on all Visa cards, while Visa Infinite includes the most extensive list of benefits.

Furthermore, merchants in more than 200 countries and territories accept credit cards on the Visa network, and there are roughly 11 million merchant locations where you can use a Visa card in the U.S. alone. In addition to credit cards, Visa-branded cards include debit cards, prepaid cards, and gift cards.

When you look at American Express vs. Discover, you can find a lot of similarities. Both companies are credit card networks and credit card issuers. So they not only determine where cards can be used, but they also handle credit card offers, applications and accounts. This sets them apart from the two other major card networks, Mastercard and Visa, which don't issue cards. But Discover and American Express also have lower acceptance rates than the other networks, although Discover holds the edge over Amex in that regard. Discover is accepted at 10.4 million U.S. merchant locations and in 190+ countries. American Express lags behind at 8.5 million and 160+, respectively. Some Amex cards also charge up to 3% in foreign transaction fees, while Discover has eliminated such fees altogether. 

Those aren't the only differences that distinguish these two dual-threat credit card companies, either. You can check out the scoreboard below.

American Express vs. Discover by Category

One other big difference between American Express and Discover is that American Express offers some charge cards but Discover does not. Charge cards are credit cards that require you to pay your bill in full each month to continue making purchases. 

But whether you get an Amex or Discover card really depends on what you're looking for as far as rewards, rates and fees are concerned. Below, you can see how some of the most popular options from each compare.

American Express vs. Discover Credit Cards:

Discover wins out in a lot of areas, but not in terms of secondary benefits. American Express offers perks like purchase protection, while Discover recently discontinued all of theirs. 

The biggest difference when you pit Discover vs. Mastercard is that while both are credit card networks, Discover also is a credit card issuer. Credit card networks decide where cards can and can't be used, as well as process transactions. Credit card issuers set rates, approve applicants and send out cards, among other things. Discover handles both functions. So, Discover credit cards are issued by Discover and belong to the Discover network. Mastercard credit cards, on the other hand, are issued by dozens of banks and credit unions.

Mastercard and Discover differ in plenty of other ways, too. For example, Mastercard has far more global acceptance, while Discover doesn't charge foreign transaction fees on any of its cards.

Discover vs. Mastercard

Sources: The Nilson Report, Discover and Mastercard.

Discover and Mastercard also differ wildly in terms of the supplemental benefits they provide. Cards on the Mastercard network often provide extended warranty, price protection, purchase protection, return protection, rental car insurance, travel insurance, and more. Discover used to have most of these benefits, but they were dropped as of 2018.

Overall, it's probably best to have a Mastercard in your pocket, especially if you're going to be traveling abroad frequently. But if you only plan to use your card within the U.S., a Discover card will work just fine, as it benefits from 99% nationwide acceptance. And you can check for international acceptance on Discover's dedicated web page.

You shouldn't forget about the two other major card networks, either. Visa is similar to Mastercard in that it boasts worldwide acceptance and doesn't actually issue credit cards. American Express is like Discover because it plays both roles.

Discover and Capital One credit cards have a few differences between them. Discover cards are not as widely accepted worldwide as Capital One. That's because Capital One cards are backed by either the Visa or Mastercard networks outside of the U.S. 

You should also know that Discover, which touts itself as an online financial services company, does not have branches. Capital One is one of the 10 largest banks the U.S. and has branches in Texas, Louisiana, Washington D.C. and several East Coast states.

Both Capital One and Discover offer credit cards with benefits for a wide range of customers. They cover needs from cash back rewards to 0% intro APRs to cards for students. While there are some similarities between the two, there are also some key differences you should keep in mind if choosing which of the two companies offers a better card for your needs.

Here are a few things you should know about Discover vs Capital One credit cards:

• Cash Back: Discover it Cash Back vs. Capital One Quicksilver - Discover Wins

Capital One Quicksilver offers a consistent 1.5% cash back on all purchases. Discover it Cash Back gets you 5% cash back on up to $1,500 spent on quarterly rotating bonus categories. It gives 1% cash back on all other purchases. Capital One Quicksilver requires a good credit score, while Discover it Cash Back requires a good credit score. Neither charges an annual fee. Discover and Capital One each have additional credit cards with cash back options.

• 0% APR on Balance Transfers: Discover it Balance Transfer vs. Capital One Quicksilver –Discover Wins

The Discover it Balance Transfer card gets you 0% for 18 months on balance transfers (3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*). Capital One Quicksilver offers 0% for 15 months on balance transfers (3% fee). Both cards have no annual fee. Capital One Quicksilver requires a good credit score, while Discover it Balance Transfer requires a good credit score. Discover and Capital One also have additional 0% intro APR offers, including 0% APR on purchases.

• Travel rewards: Discover it Miles vs. Capital One Venture– Capital One Wins

If you don't mind paying the $95 annual fee, Capital One Venture offers 2 miles / $1 spent on every purchase. The Discover it Miles card gets you 1.5 miles / $1 spent on all purchases and has no annual fee. The big difference is in the initial bonus. Discover it Miles matches all miles you've earned at the end of your first year, and Capital One Venture nets you a one-time bonus of 75,000 miles for spending $4,000 in the first 3 months. Both cards' miles are worth 1 cent each. A good credit score is required for both cards.

• Cards for rebuilding credit: Discover it Secured Credit Card vs. Capital One Platinum Secured– Discover Wins

With the Capital One Platinum Secured you can put down a security deposit of $49, $99 or $200. Discover it Secured Credit Card, however, requires a minimum deposit of $200. But it does earn you 2% cash back at restaurants and gas stations up to $1,000 in combined purchases each quarter. And you'll also be considered for an unsecured card after 7 months. Capital One, on the other hand, may grant you a higher credit limit without an additional deposit if you make your first 6 monthly payments on time. Neither card has an annual fee.

• Cards for students: Discover it Student Cash Back vs. Capital One Journey – Discover Wins

Capital One Journey offers 1% cash back on all purchases, 1.25% when paying the bill on time (except for 5% back on hotels and rental cars booked through Capital One Travel). Discover it Student Cash Back offers 5% cash back on your first $1,500 per quarter on rotating categories. And Discover matches all cash back you've earned at the end of your first year. Neither card charges an annual fee.

• Cards for small businesses: Spark Cash Select with Bonus vs. N/A – Capital One wins

Discover is at a clear disadvantage here because it does not offer any small business credit cards. Of Capital One's five business card offerings, the Spark Cash Select with Bonus is best. It yields 1.5% cash back on all purchases. There is no annual fee and it requires excellent credit for approval. It also offers $500 for spending $4,500 in the first 3 months. Other Capital One business card options include ones with travel rewards, 0% APR offers and a card for business owners with limited credit history.

• Secondary Benefits: Discover credit cards vs. Capital One credit cards – Capital One wins

Capital One offers car rental insurance and extended warranty protection among other benefits. 

Discover doesn't offer secondary benefits on any of its cards; Capital One offers these benefits on most cards. But its benefits are actually through Visa or Mastercard, which means wider acceptance than Discover, particularly outside of the U.S.

Discover and Capital One do not charge foreign transaction fees on any of its cards.

• Customer Service / Satisfaction: Discover credit cards vs. Capital One credit cards – Discover wins

Discover's customer service is 100 percent U.S.-based and its customer service representatives are available 24/7. You can contact them by phone or online chat. Capital One also offers 24/7 customer service. You can contact them by phone or e-mail, with a one to two days response time. But there's no chat or online messaging features, which limits customers' access.

Something else to consider: Both Capital One and Discover allow pre-approval for their credit cards. You can go online and check see pre-approval for multiple cards at one time. Both perform a soft inquiry on your credit that does not impact your score. This is an ideal way to see if you qualify for a credit card without the hard credit inquiry and damage to your score. You should take advantage of this feature to research these two brands further and shop around for the best deals.

There are several types of Discover cards spanning a wide range of categories; cash back, travel, low interest, student, business, bad credit, and more. All Discover cards have $0 annual fees and 0% foreign transaction fees. Plus, Discover matches all rewards earned during the first year for all their cards.

Discover is a card network, yet it also issues its own credit cards. All Discover cards offer a minimum of 1% back in rewards on purchases. Some cards give 5% cash back on purchases in select bonus categories that rotate each quarter, require activation and have a quarterly limit. Others offer 2% back on certain categories, up to a quarterly limit. Depending on the card, you may also get introductory 0% APRs for a certain period on purchases and/or balance transfers (followed by a regular standard rate).

Here are the main types of Discover cards:

• Cash back: Discover it® Cash Back, Discover it® chrome, NHL® Discover it® and more
• Travel: Discover it® Miles
• Students: Discover it® Student Cash Back and Discover it® Student chrome
• Bad credit / no credit: Discover it® Secured Credit Card
• Intro 0% APR: Discover it® Cash Back, Discover it® Miles, Discover it® Balance Transfer and more

Discover offers credit cards for nearly every need and preference imaginable. With the exception of Discover it Secured Credit Card (bad/no credit) and the student cards (limited credit), you need a minimum of good credit to get a Discover card. The downside is that Discover cards aren't as widely accepted abroad as credit cards on the Visa and Mastercard networks.

Major credit cards are any cards that belong to one of the big four credit card networks: Visa, Mastercard, American Express and Discover. That's what stores mean by “we accept all major credit cards.” A major credit card will almost always show the logo of its network on the front. In some cases it'll be on the back. If a card doesn't have such a logo, it's likely a store card that can only be used at a specific retailer.

Some major credit cards can also be considered more “major” than others, depending on the issuer. The 15 largest credit card companies account for more than 75% of all outstanding balances. So a Visa, Mastercard, American Express or Discover card from one of those companies, like Chase or Capital One, might fit the description of a major credit card best.

There are dozens of other banks and credit unions that issue credit cards, but their products are less popular. Major credit cards from the top issuers are the product of large-scale operations, after all. And they often provide perks to match, from better rates, rewards and fees to an easy-to-use website and free mobile app.

Here's what you need to know about major credit cards:

• Major credit cards are those on the Visa, Mastercard, American Express and Discover networks.
• You can usually see the logo of your credit card network on the front of your card. Sometimes it is on the back. If there is no logo, you likely have a store card that only works at a specific retailer.
• Most U.S. merchants accept all major credit cards. But American Express lags behind the others by about 1 million locations.
• Visa and Mastercard are accepted virtually everywhere in the world. Discover cards work in 185 countries and territories. American Express cards work in 160+. Discover and Amex aren't necessarily widely accepted in all the countries that take them, either.
• American Express and Discover issue credit cards, in addition to serving as card networks. Visa and Mastercard do not.
• Chase, Bank of America, Capital One, Citi, Wells Fargo and U.S. Bank are among the other major credit card issuers.

When picking a major credit card to use, it's easy to narrow your search down. If you don't plan to travel much, any network will do. But if you're going to use your card abroad a lot, Visa and Mastercard are the safest bets.

By the way, it's worth noting that Visa, Mastercard, American Express and Discover aren't the world's only major credit card networks. There's also the likes of India's RuPay and China's UnionPay, for example.

Discover is a good credit card company because there are Discover cards for people of all credit levels, and all of them have $0 annual fees and $0 foreign transaction fees. Plus, Discover cards all reward cardholders with at least 1% back on purchases and will match new cardholders' earnings from the first year as an anniversary present. Most Discover cards also offer 0% introductory APRs on purchases and balance transfers (with a standard variable rate applying after that).

Discover cards are known for their 100 percent U.S-based customer service, and Discover has very few customer complaints with the Consumer Financial Protection Bureau. There are also user-friendly features such as “Freeze it,” which allows cardholders to temporarily turn off their card to prevent any unauthorized transactions. And Discover provides free monitoring to make sure customers' Social Security numbers don't show up on risky websites.

Reasons Discover is a Good Credit Card Company:

1. Discover has cards for people of all credit levels, from bad to excellent.
2. Discover cards do not charge annual fees or foreign transaction fees.
3. All Discover cards match your first year's rewards.
4. Discover has highly regarded customer service.

Different Discover cards are good for different people, though. Discover has offers for cash back, travel, bad credit, students and more. One of the best options is Discover it® Cash Back. It offers 5% cash back on up to $1,500 spent per quarter in bonus categories (which change every quarter and require activation), and 1% back on all other purchases.

The Discover it® Student Cash Back and Discover it® Student chrome are attractive choices, too. Both cards offer students better ongoing cash back rates than the average credit card offers. And applicants with bad credit can get 1 - 2% cash back on purchases with the Discover it® Secured Credit Card.

While all Discover cards are pretty good, there are some downsides. In 2018, Discover cut several key benefits from all of its cards. Those include travel accident insurance, purchase protection, extended warranties and return protection. And as far as global acceptance goes, you can use Discover cards at merchants in 200+ countries and territories. That's third behind Mastercard and Visa. Both are accepted in more than 200 countries and territories.

But overall, Discover credit cards combine some innovative perks and attractive rewards into a single package. And since they don't charge annual fees or foreign transaction fees, the cards' rewards go right to you. Those are just a few reasons why Discover cards are good credit cards in general.