Visa vs. Discover

If you are even a bit familiar with credit cards, you may have heard of the credit card networks Visa and Discover. As a result, you may have wondered what the similarities and differences between the two are. 

To start off, Discover is both a card network and card issuer, while Visa is only a card network, which means Discover cards are issued by Discover and belong to the Discover network, while Visa credit cards are issued by many different financial institutions. Card networks are mostly responsible for processing transactions and setting the rules for where and how cards can be used, while card issuers, aside from issuing the card, come up with the rewards programs, decide who is accepted and set your credit limit, APR and other terms.

APR

Discover’s cards do not have annual fees. For Visa, some cards also do not have annual fees, while other cards with more features can cost hundreds of dollars a year. Essentially, you will have to pay more for more perks.

Rewards

Both networks offer credit cards that are great for everyday spending, such as fuel and restaurants. Every Discover card offers rewards with three rewards structures: 1.5% rewards, 2% cash back and 5% cash back in quarterly rotating categories, while Visa has 1.5% cash back and tiered-rewards cards. Visa also offers strong travel credit cards, such as the Chase Sapphire Reserve and Capital One Venture Rewards credit cards.

Sign-up bonus

In terms of sign-up bonuses, Discover has a unique sign-up bonus where it matches rewards earned during your first year with your card, which means you have potential to rack up big bonuses if you spend enough. Visa, on the other hand, tends to have more traditional sign-up bonuses in which you earn a bonus for spending a certain amount on your card within the first few months after account opening.

Introductory APR

Discover offers a 0% introductory APR on purchases and balance transfers for up to 14 months, while Visa offers better introductory APRs that can go for as long as 18 months.

Other perks

Both card networks also offer additional benefits. Discover has many secondary perks, including no overlimit fees, no foreign transaction fees, free Social Security number alerts, free monthly FICO score, free overnight card delivery upon request, you can freeze your card via the Discover website or mobile app if your card is lost or stolen, and you can take cash out at the register at select retailers while only having to pay interest at the purchase APR (not the cash advance rate).

Visa offers its own set of additional benefits, including emergency cash disbursement, auto rental collision damage waiver, extended warranties, price protection, rental car insurance, travel insurance and roadside dispatch. Visa is better for secondary travel benefits, and there are more benefits with Visa Signature and Visa Infinite cards. It is also important to note that while Discover cards have no overlimit fees, overlimit fees depend on the card issuer for Visa cards. Additionally, you will have to pay foreign transaction fees with most Visa cards except with travel cards.

Which is more accepted?

Overall, although Discover doesn’t charge foreign transaction fees, Visa is more globally accepted. Visa has a total of 344.7 million Visa cards in circulation in the U.S., 10.7 million U.S. merchants that accept its cards and 200+ countries and territories where its cards are accepted. Discover, on the other hand, has only 51.4 million Discover cards in circulation in the U.S., 10.4 million U.S. merchants that accept its cards and 185 countries and territories where its cards are accepted.

Which should I choose?

Generally, Visa offers more card options and stronger travel credit cards than Discover, so if you plan on traveling frequently, Visa would be a better option for you. Although Discover does not charge foreign transaction fees, it only offers one travel card, has no tiered travel rewards and is not as internationally accepted as Visa. However, if you plan on only using your card in the U.S., a Discover card would be fine. Visa cards also have better purchase protection and travel insurance, both of which Discover lacks. Discover offers benefits to help you build credit responsibly and 100% U.S.-based customer support, so your choice will depend on your priorities and preferences.

Conclusion

Overall, the main differences between Discover and Visa lie in their annual fees, rewards systems, sign-up bonuses, introductory APR policies and additional benefits. Whichever network you should choose will depend on your priorities and preferences, but if you plan on traveling abroad frequently, Visa credit cards would be a better choice for you because they are more globally accepted. Visa also offers stronger travel credit cards, while Discover only offers one travel credit card. Overall, Visa offers a wider selection of cards, and their benefits greatly vary from issuer to issuer, so you should look into specific issuers and cards when choosing a credit card instead of choosing based on the credit card network.