Credit Card Networks: What to Consider

What are credit card networks?

Credit card networks are the behind-the-scenes forces that make swiping your plastic possible. They act like communication hubs, working tirelessly to connect the various players involved in a credit card transaction. Imagine you're buying a protein shake at the gym. The network ferries information between your bank (the issuer), the gym's bank (the acquirer), and the payment processor to verify your card details, check your credit line, and ensure everything goes smoothly. In short, credit card networks are the essential infrastructure that keeps the credit card world running.

Why should I care which credit card network my card belongs to?

While the credit card network might not be the first thing you think about when choosing a card, it can have a significant impact on your overall experience. Here are a few reasons why you should care about which credit card network your card belongs to:

1. Acceptance: Major credit card networks like Visa, Mastercard, Discover, and American Express are accepted by a vast number of merchants. However, not every merchant accepts each of these cards. Knowing which network your card belongs to can help you determine where you can use it and avoid any inconvenience when making purchases.
2. Security and Fraud Protection: Different credit card networks use different security measures in place to protect users from fraudulent activity.
3. Benefits and Rewards: While most benefits and rewards are determined by the card issuer, the network can also play a role in the benefits you receive.

Deciding which credit card network(s) is best for you

When choosing a credit card, you will almost certainly choose a card that belongs to one of the major credit card networks (Visa, Mastercard, Discover, or American Express). Below we have summarized some of the key differences between these networks to help you decide which one is best for you.

As you read through, we recommend to input or adjust your card network preferences directly in the boxes here. Your recommended cards will be updated automatically when you input your preferences. Just put a checkmark next to the card network(s) you prefer. If you feel like you prefer one over another, you can adjust the importance of each one be selecting the '!!!', '!!', '!', or '-' buttons. You can adjust how important you feel card network is relative to other factors (like rewards program, card issuer, etc.) by selecting one of the '!!!', '!!', '!', or '-' buttons at the top of the box.

American Express

American Express boasts a 99% acceptance rate across the USA, making it widely usable, and is accepted at 119 million merchants globally, offering extensive convenience worldwide. Additionally, American Express employs robust security measures, including chip technology and advanced analytics, to protect against fraud while providing a plethora of benefits and rewards, including travel perks and exclusive access, making it a top choice for discerning cardholders.

• Acceptance (in the USA): American Express can be accepted at 99% of places in the US that accept credit cards.* Based on the Feb 2023 Nilson Report.Source: American Express  You can use American Express' map to determine what specific merchants nearby are in the American Express network, or see thier list of accepted merchants for the largest ones.
• Acceptance (globally): American Express is accepted at 119 Million merchants worldwide (vs 130 Million for Visa and Mastercard).* Referencing Nilson Report #1237.Source: Thrifty Traveler 
• Security and Fraud Protection: American Express uses a combination of physical card security features (chip technology, CID), advanced analytics (machine learning models), and account monitoring to detect and prevent fraud. This layered approach helps to safeguard your card from various fraudulent activities. Unlike some other networks though, American Express operates a closed-loop system. This means they have a direct relationship with both cardholders and merchants. This structure allows them to gather more transaction data and potentially identify suspicious activity outside your usual spending patterns more effectively.* Source: American Express 
• Benefits and Rewards: As both a card network and an issuer, American Express offers a wide range of benefits and rewards to its cardholders. These include travel perks, shopping benefits, entertainment access, and more. American Express also has a robust rewards program that allows cardholders to earn points on purchases and redeem them for various rewards, such as travel, gift cards, merchandise, and statement credits. Additionally, American Express offers exclusive benefits to its cardholders, such as access to airport lounges, concierge services, and special events.* Source: American Express 

Discover

Launched in 1985 by retail giant Sears, Discover initially stood out for its innovative approach. Unlike many store-branded cards, Discover offered wider acceptance and a focus on rewarding customers. It was one of the first cards to introduce cash back rewards programs, a feature that continues to be a hallmark of Discover cards today. By 1993, Discover became an independent company, severing ties with Sears. Since then, it has grown significantly, establishing itself as a major player in the US credit card market. While Discover's global acceptance is still catching up to competitors, it has strategically partnered with networks like UnionPay to expand its reach.

• Acceptance (in the USA): Discover is accepted nationwide by 99% of the places that take credit cards.* According to the Feb 2023 issue of the Nilson Report.Source: Discover 
• Acceptance (globally): Discover credit cards are accepted to a varying degree globally, with coverage extending primarily to countries in North America, particularly the United States, where Discover is based. While Discover has made efforts to expand its international acceptance through partnerships with payment networks like UnionPay and Diners Club International, its reach outside of North America is still limited compared to major card issuers like Visa, Mastercard, and American Express. Travelers may encounter acceptance challenges in certain regions, particularly in Europe and Asia, where other card networks dominate. However, Discover's global acceptance has been steadily growing, albeit at a slower pace, offering more options for cardholders seeking to use their Discover cards abroad.
• Security and Fraud Protection: Discover prioritizes cardholder security and offers a robust fraud protection suite. They monitor your account for suspicious activity and will notify you if anything seems out of the ordinary. Discover's $0 Fraud Liability Guarantee ensures you're never responsible for unauthorized purchases. If fraud is detected, they'll swiftly close your account to prevent further misuse and send you a new card with updated information. Discover also offers tools like purchase verification and account alerts to empower you to stay in control of your finances.
• Benefits and Rewards: See individual Discover cards for details on rewards and benefits offered.

Mastercard

Mastercard was originally established as an interbank collaboration called the Interbank Card Association (ICA), it aimed to compete with the dominant BankAmericard (later Visa). Mastercard emerged as a global network, facilitating electronic payments between banks and financial institutions. Over time, it evolved into a technological powerhouse, developing secure and efficient transaction processing systems. Today, Mastercard is accepted at millions of merchants worldwide, offering consumers a convenient and widely recognized payment method. They also champion financial inclusion and technological advancements within the payments landscape.

• Acceptance (in the USA): Mastercard is accepted by nearly all merchants that accept credit cards in the USA.
• Acceptance (globally): Mastercard boasts extensive global acceptance, reaching millions of merchants across the world. While not quite as ubiquitous as Visa, it's accepted in over 210 countries and territories and is widely recognized as a preferred choice for international travelers.
• Security and Fraud Protection: Mastercard prioritizes security with features like chip-and-pin technology, real-time fraud detection, and zero liability protection for unauthorized charges. Utilizes advanced security features such as tokenization and biometric authentication to safeguard transactions and protect cardholders against fraudulent activity.
• Benefits and Rewards: Benefits and rewards depend on the individual Mastercard issued by a specific bank. These can include cash back programs, travel rewards, purchase protection, extended warranties, and more.

Visa

Visa, a dominant player in the global payments arena, boasts a rich heritage stretching back to the 1950s. Its story begins with Bank of America's launch of the "BankAmericard," the first ever consumer credit card program. In the 1970s, recognizing the potential of a broader network, Bank of America began licensing the program to other financial institutions, leading to the formation of a cooperative organization. This marked the birth of Visa, a name chosen for its universal appeal across languages. Over time, Visa transformed into a global network, facilitating electronic transactions between banks and merchants worldwide. Through continuous innovation, it developed secure and efficient payment processing systems. Today, Visa is accepted globally, offering convenience and widespread recognition for consumers. Visa remains a leader in the payments industry, constantly evolving to stay ahead in the ever-changing financial landscape.

• Acceptance (in the USA): Visa is widely accepted across the United States, with coverage extending to most merchants, including retail stores, restaurants, and online platforms. From small businesses to large corporations, Visa's presence in the American market is robust, providing consumers with ample opportunities to utilize their Visa cards for purchases.
• Acceptance (globally): With acceptance in over 200 countries and territories worldwide * Source: Visa , Visa stands as a preferred payment method for international travelers and global consumers alike. Whether exploring bustling cities or remote destinations, Visa cardholders can rely on the widespread acceptance of their cards, ensuring seamless transactions wherever they go.
• Security and Fraud Protection: Visa employs cutting-edge security measures to safeguard transactions and protect cardholders against fraudulent activities. From real-time fraud monitoring to advanced encryption technologies, Visa prioritizes the security of every transaction, providing peace of mind to consumers and businesses alike.
• Benefits and Rewards: Visa offers a variety of benefits and rewards programs tailored to meet the diverse needs of its cardholders. From cashback incentives to travel perks and exclusive discounts, Visa cardholders can enjoy a range of rewards that enhance their purchasing experience and add value to their everyday spending.