Visa vs. American Express: A Comparison of Leading Payment Companies

A red Visa card placed on top of an Amex card and a blurred Mastercard — Image credit: istockphoto

When it comes to online card financial transactions, Visa and American Express are two companies that have made a significant impact. Alongside Mastercard and Discover, these companies have contributed largely to the ease of electronic payments in various industries. The two card processors do not just facilitate transactions but also offer protection from fraud and excellent security. This article will compare Visa and American Express in different areas.

Origin and Mode of Operation

Established in 1958, Visa has grown to be one of the largest payment processing networks in the world. The company focuses on credit and debit card transactions, allowing payments between consumers, businesses, and financial institutions.

Like Mastercard, which was launched a few years later, Visa works on an open-loop system. This means it does not issue its cards but partners with banks and financial institutions that provide the cards to consumers.

Also known as Amex, American Express was established in 1850. The company was created to facilitate mail across New York and the Midwest. Over time, it evolved into a financial corporation widely known for its exclusive charge and credit card services.

Unlike Visa, Amex operates on a closed-loop system. This means that it issues the cards and also processes the payments. This gives Amex more control over its user base and helps it tailor its services to high-income individuals.

Merchant Acceptance

Due to the open-loop system operated by Visa, it is one of the most accepted payment networks in the world. It is available in over 200 countries and used by brands across different industries such as fashion, food, retail, electronics, IT, pharmaceutical, gaming, and gambling. In the gambling industry, it’s very difficult to find online casinos, sportsbooks, or esports sites that do not accept payments via Visa. Almost all the platforms featured on GamblingSites.com have the processor on their top list of accepted banking options. You can deposit funds to play slots, table games, live casinos, and many others using a Visa debit or credit card.

While American Express is not as popular as Visa, it is available in over 160 countries. However, it is used mostly in America, Canada, and Australia. Compared to Visa, it is hardly accepted across Europe, Asia, and Africa. Nevertheless, the lesser popularity does not stop its acceptance by merchants across different industries. You’ll find it across several websites, whether fashion, food, or electronics. Even gaming and gambling sites accept it.

Customer Service

When it comes to support, American Express comes first. According to the 2022 U.S Credit Card Satisfaction Study by J.D. Power, Amex ranks highest in customer satisfaction. During the 16 years in which J.D. Power has conducted this research, Amex has ranked first in 12 years. This means you can expect excellent service quality if you have an American Express card.

While Visa cards also deliver top-notch services, you do not interact directly with the company for support. You have to reach the financial institution or bank that issued the card. Since the company has lots of partners and card issuers, it is quite difficult to rate customer service as it varies. The issuers determine the quality of support, and Visa has no control over it.

How Do You Choose Between Amex and Visa?

When selecting which card company to use, there are factors to consider. Start by checking your credit to confirm which accounts you’ll qualify for. You can check your credit score for free or learn how to do so on Markmeets.com. If you’ve got an excellent credit score, you can go for any of the processors. However, going for a Visa card can be easier if your score is lower.

You also have to consider where you will spend your money. If you reside in the US, Canada, or Australia, you’ll find it easy to use a card from either of the networks. However, if you reside elsewhere or plan to travel, Visa will be a better option.

There’s no harm in carrying cards from both networks as this will ensure you can pay for services where only a certain type is accepted. By having cards from Amex and Visa, you don’t have to choose only one, as they can perfectly complement each other. So, also consider diversifying your payment options.