Copyright (c) 2009 Tara Tiemann
In the credit card market today, undeniably the three largest names are Visa, Master Card and American Express. These three leading credit card companies have been in the credit card business since the early 50's and since then, had made a big name for themselves. So what is the difference between these topmost names?
The fact is Visa and Master Card are not credit cards at all. You cannot find a single credit card that is solely owned by Visa or Master Card. Instead, Visa and Master Card provide a dependable payment scheme for various banks and card providers all over the world.
Try to look at most of the credit cards today and you'll notice either a Visa or a Master Card logo on it regardless of the company who issued the card. You can even find prepaid debit cards with either the Visa or MasterCard logo on them.
This is because both Visa and Master Card have established partnership with most banks and merchant establishments. Thus, clients can make payments through their credit or debit card. Basically, Visa and Master Card acts as a third party between merchants and banks when it comes to making payments.
American Express - the First Credit Card in the Market
On the other hand, American Express or AMEX is a credit card provider in itself. American Express was first established back in 1850 but it wasn't until 1958 that Amex introduced its first credit card in the market. Today, American Express operates in more than 130 countries worldwide. The company directly processes the payments their clients make to different establishments through the various American Credit Cards they issued.
Different types of credit cards intended to cater specific demands of clients has already been introduced by American Express. The company offers a broad selection of personal credit cards, small business credit cards, corporate credit cards, reward credit cards and student credit cards to cater the needs of their card holders.
For instance, the Blue Card from American Express has features that are especially designed for students. It offers a student protection against theft and damage, protection against fraud, purchase returns protection, a 24-hour customer service, a membership rewards program, travel accident insurance, an easy payment option, transfer balances for free and an online access to his account. All these great features are designed to help students manage their credit accounts more effectively and debt-free.
Student cards issued by other credit card companies bear the Visa and Master Card logo. This means, the card can be used in all establishments that are connected with Visa or Master Card. This is another major difference between Visa, Master Card and American Express.
Unlike American Express cards which can only be used in exclusive establishments, Visa and Master Card credit and prepaid debit cards are accepted and used in a wider range of establishments and stores. In fact, over 20 million merchant establishments worldwide perform their business transactions via Visa or Master Card. Up to this moment, Visa and Master Card are international modes of payment used in about 150 nations.
------
For people who want to live debt free, Tara Tiemann, a credit analyst of Go-preid.com , is your resource for sites that will help you on your finances and save big money using
prepaid credit cards and
prepaid cell phones.
