The Major divergence in the middle of Visa, master Card And American Express

The Major divergence in the middle of Visa, master Card And American Express

American Express credit cards made their presence known in the financial jungle in the early 50's. Visa and expert Card also came into the scene colse to the same time and served the same store segment - Credit. There soon developed their own model for serving the store and established themselves as leaders in the credit card providers the world over.

While American Express or Amex as it is popularly known in the European countries has grown to be the most widely recognizable of credit cards and is a name that describes exclusivity in a way. However, not many credit card holders throughout the world know the unlikeness in the three major players in the credit card industry. positively there is no unlikeness between Visa and expert Card, the main unlikeness is between these two players and American Express credit cards - The major unlikeness is in their style of operation.

Visa Card and expert Card are primarily methods of development payments. These are tow financial fellowships that have grown into institutions by themselves. They negotiate and setup payment systems at distinct merchant locations over the globe but never issue any credit cards themselves. Visa and expert Card set up business partnerships with merchant establishments where customers can use the credit cards and banks or financial institutions that positively issue credit cards to their customers. Visa and expert Card make the payment to the merchant establishments where the cards are used and payment the business that positively issued the card to the buyer a fee for development the up front payment on their behalf. The card issuing business on its part charges a fee for issuing the card, an annual rental for the card and an interest on the estimate of payment paid out to the merchant establishment.

These credit card fellowships are billed by Visa or expert Card and they in turn bill the card holder. The owner never pays any cash directly to Visa or expert Card.

American Express is distinct in that they have an entirely inexpressive setup. They issue their credit cards under their own name and logo. They also directly make payments to merchant establishments where the card is used. American Express do their own marketing of services to merchant establishments and card customers. The other unlikeness is that American Express has a diminutive usage through the world while Visa and expert Card are proper at over 20 million merchant establishments in over a hundred and fifty countries.

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