Visa® vs. Mastercard® vs. Discover®: What’s the difference?

Whether you want to learn more about your current credit cards or explore new options, you may be wondering about the similarities and differences between credit card networks, such as Discover, Visa and Mastercard.

First, a few basics: Networks process transactions from payment cards, including credit cards. These networks partner with credit card issuers, which provide credit cards, set terms and lend money to cardholders. In some cases, the same company can serve as both a network and an issuer.

What you’ll learn:

• Banks and financial institutions issue credit cards and partner with credit card networks.

• Visa and Mastercard don’t issue credit cards directly.

• Discover, which Capital One acquired, issues credit cards and operates as a payment network.

• Capital One issues credit cards that use Discover, Visa and Mastercard networks.

Discover, Visa and Mastercard are all credit card networks. This means they’re responsible for processing credit card transactions—among other things. 

Unlike Visa and Mastercard, Discover also issues credit cards. American Express®—another major payment network—operates in a similar way to Discover.

Credit card networks work in similar ways. Here are a few examples:

• Credit card applications: The decision whether to approve card applications is left to their issuing partner. The issuer also offers its own rewards and benefits, interest rates, fees and terms and conditions. 

• Contactless payments: To make payment processing faster, networks might use contactless payment technology where cardholders tap or hold their card, phone, watch or other device over card payment terminals. 

• Other payment cards: Networks have partnerships beyond credit card issuers. They might also support debit cards, prepaid cards and more.

Discover, Visa and Mastercard process purchases using different systems. But for the most part, card issuers determine card benefits, including rewards.

Discover, Visa and Mastercard have a long history of securely processing payments. A card’s payment network mainly affects how each card transaction is handled. As a cardholder, you might not even notice much difference, especially if you’re not traveling abroad. 

Instead of focusing on the payment network, you could compare credit cards by their cash back or travel rewards, annual percentage rate (APR), annual fees, promotional interest rates, and credit requirements to determine which credit card is right for you.

The major differences among credit cards have to do with the card issuer and the specific benefits of each card.

Capital One issues cards on Discover, Visa and Mastercard networks. If you’re ready to apply for a credit card, you can:

• See whether you’re pre-approved for credit cards without harming your credit scores. 

• Explore travel rewards cards with unlimited miles you can actually use. 

• Earn unlimited 1.5% cash back on every purchase, every day, with a cash back rewards card. 

• Earn unlimited cash back on food and fun with a dining and entertainment rewards card.