The lowdown.
What is a Visa credit card?
A Visa credit card is a card issued by banks and financial institutions in Australia that operates on the Visa payment network. This network processes transactions securely and is accepted worldwide, offering benefits like fraud protection and contactless payments.
Unlike American Express, Visa doesn’t issue cards itself; it’s the network that powers the card, ensuring you can use it globally.
Types of Visa credit cards
Visa credit cards come in various forms to suit different lifestyles. Here are the main types available in Australia:
- Balance transfer credit cards. Transfer existing debt to enjoy 0% interest for a period, helping manage repayments.
- Business credit cards. For work expenses, keeping personal and business spending separate, with potential higher limits.
- Frequent flyer credit cards. Linked to airline programs like Qantas or Velocity, earning points for flights and travel perks.
- Low rate credit cards: Ideal if you carry a balance, with lower interest and sometimes 0% purchase rates that can help save on costs.
- No or low annual fee: Great for budget-conscious Aussies that want a no-frills card with lower yearly charges. However, this reflects the card's rewards and perks.
- Rewards credit cards. Earn sign-up bonus points or cashback for spending, perfect if you pay off your balance monthly.
- Travel credit cards. Tailored for travellers, often with no foreign transaction fees and travel insurance.
Expert explains Visa vs Mastercard
David Boyd, co-founder of Credit Card Compare, explains that both Visa and Mastercard are widely accepted and offer similar security and support.
“There are still a few places that don’t accept American Express cards and there’s not much difference between a Visa or Mastercard credit card. They both offer very similar fraud monitoring and purchase protections. The big difference is in the card rates, rewards, fees, and feature."
How do Visa credit cards work?
When you use a Visa credit card, you’re borrowing money from the issuing bank. The Visa network processes the transaction, authorising payments and transferring funds from your credit limit to the merchant.
You’ll get a monthly statement showing your spending, and you must pay at least the minimum amount by the due date to avoid fees. If you don’t pay in full, interest is charged on the remaining balance.
Benefits of Visa credit cards
Visa cards offer a range of benefits, making them a popular choice among Australians:
- Contactless payments. Tap-and-go is supported, and many cards work with digital wallets like Apple Pay and Google Pay.
- Insurance. Some cards include travel insurance, purchase protection, and extended warranties.
- Premium cards. Platinum, Signature, and Infinite offer extras like concierge services and airport lounge access.
- 24/7 Support. Visa’s Global Customer Assistance Service lets you report lost or stolen cards from anywhere.
- Visa Checkout. Saves payment and shipping details for faster online shopping with partnered merchants.
- Visa Secure. Adds extra security for online transactions, verifying your identity before payment.
- Visa offers + perks. Access discounts with brands like Booking.com and THE ICONIC, plus entertainment deals.
