VISA and MasterCard payment gateway
Modern online payment methods such as A2A transfers, digital wallets, cryptocurrency, and ‘buy now, pay later’ are actively developing, but in e-commerce, one cannot forget about connecting payment by bank card. Credit, debit, and prepaid cards remain a popular and sought-after method in e-commerce.
There are many bank card payment systems in the world. Some are international, covering hundreds of countries, while others are national solutions that only work in one country. The most popular systems remain VISA and MasterCard. Both solutions boast good geographical coverage, as they operate in most countries around the world. In this article, we will explain what a bank card payment system is, how it works, how to choose a VISA and MasterCard payment gateway, and why these solutions are relevant for businesses, especially in high-risk sectors.
What is a payment system: definition and functions
A payment system is a complex of technological, financial, and organisational infrastructure designed for the efficient and reliable transfer of funds between parties involved in economic relations. It serves as the basis for cashless payments via bank cards, e-wallets, and other digital instruments.
The main elements of such a system are issuing banks (which issue cards), acquiring banks (which serve commercial enterprises), processing centres (which process transactions) and the payment system itself, which acts as an intermediary and coordinator between all participants.
The key functions of payment systems are:
- Funds transfer – the rapid transfer of funds from the buyer to the seller.
- Data transfer and verification – the processing and verification of information about the transaction being made.
- Security and confidentiality – the protection of users' personal and financial information.
- Standardisation of procedures – unification of the format of interaction between banks and commercial organisations.
- Control and prevention of fraudulent activities – monitoring of suspicious transactions and application of measures to combat financial crimes.
These functions guarantee the convenience, reliability and high speed of financial transactions, allowing users to make payments instantly and securely.
How the payment system works when paying by card
Paying by bank card seems like a simple procedure, but in a matter of seconds, a whole series of complex steps are performed, involving the interaction of many participants.
Here is a step-by-step guide to what happens:
- The customer initiates the payment by inserting their card into the terminal or tapping their NFC-enabled device.
- The terminal reads the card details and sends a payment request to the merchant's acquiring bank.
- The acquiring bank forwards the request to the relevant payment system (e.g. VISA or MasterCard).
- The payment system processes the request and sends it to the customer's issuing bank.
- The issuing bank confirms that there are sufficient funds in the cardholder's account and authorises the transaction.
- The confirmation is sent back through the payment system to the acquiring bank and then to the customer via the terminal.
- The funds are debited from the buyer's account and credited to the seller's account, usually within 24 hours.
This complex process is automated and takes literally moments, making daily financial transactions convenient and fast.
Payment systems and online payments
The development of e-commerce has significantly expanded the sphere of influence of payment systems, making them an indispensable tool for remote transactions. Online payments are made through the VISA MasterCard payment gateway, which is connected to the websites of shops and delivery services.
The mechanism of online payments is similar to the physical process of paying by card, but additional modern data protection methods are used:
- 3D Secure (VISA Secure / MasterCard Identity Check). An additional step to confirm the identity of the cardholder by sending SMS codes or biometric identification.
- Tokenisation. Replacing real card numbers with temporary digital codes (tokens) to minimise the risk of personal data leakage.
- Use of mobile wallets. Integration of bank cards into smartphone applications, allowing payments to be made with a single click.
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Such innovative approaches increase customer confidence in electronic payments and contribute to the growth in popularity of online shopping.
Payment systems play a vital role in the modern world, making it easier for people to make purchases, increasing the security of financial transactions and contributing to the development of global trade.
History and origin of the VISA and MasterCard payment systems
The history of both payment systems began in the United States of America. MasterCard was founded in 1966, and VISA appeared a little later, in 1976. Despite the ten-year difference in their emergence, VISA managed to take a leading position in the global market, becoming the most popular international payment system. Today, both systems operate in more than 200 countries around the world, handling billions of transactions every day.
All existing payment systems can be divided into three large groups:
- International. VISA and MasterCard belong to this type. They are accepted almost everywhere and provide maximum freedom of movement and payment.
- National. Examples include local payment systems in individual countries, intended primarily for domestic use.
- Local. These are limited to a small region or city and are rarely used.
Although bank cards look the same and perform similar functions, there are a number of significant differences between them. The table below compares the key indicators of the two systems.
| Parameter | VISA | MasterCard |
| Main currency | US dollar | Euro |
| Service fee | US dollar | The traditional form of cashless payments remains popular, especially among the older generation and those who prefer to control their spending. |
| Payment options | Depends on the type of card | Leaders in this segment include Afterpay, Zip and Klarna. This method allows shoppers to make purchases with the option of interest-free instalments. |
| Geography | More than 20 million companies | Direct transfers between bank accounts are becoming increasingly popular thanks to the development of fast payment infrastructure. |
Despite these differences, users are unlikely to notice any significant difference between these systems within a single country. The main advantage of each system becomes apparent when travelling abroad.
Currency conversion features
One of the key characteristics influencing the choice between VISA and MasterCard is currency conversion. The process is as follows:
- Payment for goods or services is made in the local currency.
- The system automatically converts your card's currency into the local currency.
- The issuing bank applies its own exchange rate.
This is where the differences between the systems become apparent:
- VISA uses the US dollar as the base currency for conversion.
- MasterCard uses the euro.
Therefore, when travelling to countries where the main currency is the dollar (the United States, Canada, Australia, Latin America), it is more advantageous to use a VISA card. In the eurozone countries and most of Africa, it is best to use MasterCard.
Bonuses and benefits
Both systems offer their customers a wide range of bonus programmes and promotions aimed at increasing loyalty:
- VISA is known for its promotions in the areas of tourism, insurance and car rental.
- MasterCard attracts customers with a larger number of partners in the countries where it operates, which allows you to receive increased bonuses and discounts of up to 10%.
Particularly generous offers are available to premium cardholders, including free insurance, access to airport VIP lounges and a personal concierge service.
Classification of VISA and MasterCard cards
Card products from both systems are divided into several categories depending on the level of service and features.
| Beginner | VISA Electron | MasterCard Maestro | New cards are almost impossible to obtain, and customers can only reissue existing cards. |
| Intermediate | VISA Classic | MasterCard Standard | Broader functionality, support for three-digit security codes (CVV/CVC), contactless payment option. |
| Premium | VISA Platinum, VISA Signature | MasterCard Platinum, MasterCard World Black Edition | Maximum comfort, enhanced security, extensive bonus programmes, personalised services and high service costs. |
Where is it more profitable to use cards?
Both payment systems — VISA and MasterCard — have a global presence and are accepted in the vast majority of countries around the world. Their functionality and coverage area are similar in many ways: none of them has an absolute advantage in terms of the number of serviced states.
In practice, the popularity of a particular card with a particular user is more often determined by the conditions of the issuing bank, rather than geographical features. Banks can offer additional benefits to customers:
- reduced currency conversion fees;
- cashback or bonuses for operations in certain categories;
- preferential cash withdrawal conditions abroad;
- travel insurance;
- privileges in partner programs.
These factors often have a greater impact on the choice of card than the formal “attachment” of the payment system to the region.
The optimal solution for users would be to have both cards at the same time to minimise possible conversion losses.
Due to the high popularity of these two payment systems and the possibility of combining them with digital payment methods, it is important for businesses to have a VISA and MasterCard payment gateway. By adding this payment method, companies gain access to a wide audience and the ability to receive transfers from customers from different countries around the world.
How to choose the best payment gateway for your business
Choosing the right VISA MasterCard payment gateway is a key factor in the success of any online business. It determines the convenience of accepting payments, the speed of transaction processing, and customer satisfaction. Let’s take a look at the important criteria that will help you choose the best option.
Integration with existing platforms and services
Your payment gateway should fit perfectly with your current tools and systems. Pay attention to compatibility with popular platforms:
- CMS and website builders: WordPress, Shopify, Wix, Drupal
- Shopping carts: WooCommerce, 3dcart, CubeCart
- Accounting systems: QuickBooks, Xero, NetSuite
- Recurring payment systems: Fusebill, Chargebee
- POS terminals: NCR, Tender Retail, Squirrel
Integration should be simple and reliable, otherwise your store may experience malfunctions.
If you offer sports betting, gambling, adult products, or card games, it is important to pay attention to the provider’s experience in high-risk industries. BillBlend, which works specifically in this area, is an excellent example. Its extensive experience allows it to configure and optimise bank card payments in more than 50 countries around the world.
Technical friendliness for developers
Even if you are not a technical specialist, pay attention to the ease of integration and the quality of technical documentation. A good payment gateway should have:
- a simple and understandable API;
- detailed documentation;
- code samples and libraries for popular programming languages;
- a clear error handling mechanism.
This will simplify the work of your developers and speed up the launch of the project.
Currency support
Decide whether you will sell goods or services only locally or plan to enter the international market. Consider the following:
- simultaneous work with multiple currencies;
- the possibility of dynamic currency conversion (DCC);
- no hidden fees for conversion.
If your customers are located in different countries, make sure that the gateway supports the necessary currencies.
BillBlend supports 70+ currencies and over 100 payment methods. This allows you to expand your customer base and easily enter the international market, where customers prefer to pay in different currencies.
Reliability and speed of funds receipt
One of the most important factors is how quickly you will receive money in your bank account. There are two options here:
- A separate merchant account is suitable for large businesses with an annual turnover of more than $500,000. Funds are received faster and more reliably.
- An account aggregator is convenient for small businesses with a turnover of less than $100,000, but carries the risk of delays and funds being frozen.
Estimate your sales volume in advance to choose the best solution.
Cost of services and commissions
Commissions vary greatly depending on the provider you choose. The main types of fees include:
- Interbank commission — a fixed rate set by VISA and MasterCard;
- Processor surcharge;
- Transaction commission (usually $0.05-$0.30 per transaction, the exact rate depends on the bank's conditions);
- Monthly fee ($10-$25 on average).
It is beneficial for large businesses to set up a separate merchant account to reduce the overall rate to ~2.2%, while aggregators charge around 2.9%-6%. The exact terms of cooperation are specified in the contract. They may vary depending on the type of business, turnover, and other parameters.
Quality of customer support
Payment issues are inevitable, so high-quality 24/7 support is important:
- Phone line;
- Chat support;
- Email.
Check reviews on the response speed of the support service and the quality of the advice provided.
Choosing the right payment gateway ensures the smooth operation of your business, satisfied customers, and a stable cash flow. Analyse your business needs, sales volumes, and international ambitions before making a decision. Use the criteria listed above to compare different options and choose the best payment gateway for you.
Why is BillBlend the best service for connecting card payments?
BillBlend is a modern and reliable VISA MasterCard payment gateway, specially designed to meet the needs of high-risk businesses. The service has a number of unique advantages that make it stand out from the competition.
Fast and free integration
One of the main advantages of BillBlend is the ability to connect via API for free. This means that entrepreneurs can integrate payment solutions into their infrastructure without additional costs or time loss. Quick implementation allows you to start accepting payments immediately and focus on growing your business.
Wide range of supported currencies and payment methods
The service supports over 70 currencies and more than 100 payment methods, covering virtually all regions of the world. This gives business owners a unique opportunity to accept payments using the most common methods, including bank transfers, QR payments, e-wallets, and even cryptocurrencies. Such a wide range of payment methods helps attract more customers and increase conversion rates.
Working with cryptocurrencies
A unique feature is the support for cryptocurrencies, which is relevant for innovative and high-tech projects seeking to implement the latest payment technologies.
Specialisation in high risk
BillBlend is designed specifically for high-risk businesses, including industries such as gambling, tobacco, travel, adult entertainment, and more. Understanding the specifics of high-risk areas allows us to avoid frequent service failures and ensure stable operation.
Multi-level security and fraud protection
A real-time fraud detection system is implemented to prevent financial losses and preserve the reputation of the business. Multi-level data encryption is used to ensure complete protection of customers’ personal and financial information.
Effective chargeback management
Advanced chargeback monitoring and prevention tools help minimise financial losses and maintain a positive status with payment systems.
Individual approach and customisation
The platform is easily adaptable to specific business requirements, whether it is a small start-up or a large corporation. It is possible to create unique payment solutions that meet the individual needs of the company.
Support service
24/7 technical support is available, guaranteeing quick assistance and resolution of any issues at any time of the day. A team of highly qualified specialists is always ready to help and offer professional advice.
No hidden fees and transparent terms
There are no unexpected or hidden payments; everything is transparent and clear, which makes it easier to plan your budget and forecast costs. Competitive prices and flexible tariff plans are offered, suitable for businesses of any size. Minimised fees allow you to save a significant portion of your working capital.
Fast withdrawal of funds
Money is quickly transferred to current accounts, which improves financial turnover and increases business liquidity.
BillBlend is the ideal choice for businesses that need reliable, secure, and multifunctional payment solutions. Regardless of the size of your company and the specifics of your activities, this service can provide convenient and effective management of financial transactions, opening up new horizons for the development and growth of your business.
Frequently asked questions
What payment methods do VISA and MasterCard support?
VISA and MasterCard support a wide range of payment methods, including credit, debit and prepaid cards. These payment systems are involved in a large number of transactions around the world, being one of the most common and versatile solutions for e-commerce.
What is the main difference between VISA and MasterCard?
The main difference lies in the base currencies: VISA more often uses US dollars, while MasterCard uses euros. This affects currency conversion processes when making international payments. Both systems have wide coverage and are accepted in most countries around the world.
How does currency conversion work when paying with a VISA or MasterCard?
The conversion process involves automatically exchanging the card’s currency for the purchase currency. VISA converts via US dollars, while MasterCard converts via euros. The specific exchange rate is set by the card-issuing bank, which can affect the final payment amount.
Why are VISA and MasterCard beneficial for high-risk businesses?
VISA and MasterCard provide a reliable infrastructure and broad international availability, which is critical for high-risk businesses. Payment gateways are resilient to failures and ensure timely transaction processing, reducing the likelihood of service denial.
What factors are important when choosing a VISA or MasterCard payment gateway?
The main selection factors include ease of integration with existing platforms, technical convenience for developers, support for a large number of currencies and payment methods, reliability and speed of withdrawal, commission rates, and quality of customer support.
Are VISA and MasterCard suitable for international business?
Yes, absolutely. VISA and MasterCard operate in more than 200 countries around the world, accepting millions of companies and ensuring smooth international transactions. This makes them an excellent choice for expanding your business internationally.
