What is a Visa credit card?
Visa, as a network, is a link between consumers, the government, and businesses. A Visa credit card is a credit card that uses the Visa network to process and authorize payments. All Visa cards carry the Visa brand and are easily recognized as belonging to this system.
Visa credit cards are issued based on the creditworthiness of the borrower and have several measurable benefits that allow you to save money. Visa credit cards vary based on borrower category, spending, and credit score. In addition, visa credit cards have specific credit limits for every customer.
In Canada, Visa is one of the most popular payment networks, along with Mastercard and American Express. However, unlike American Express, Visa does not issue credit cards directly to customers. Instead, it works through a network of partner financial institutions, such as banks. The partner institutions that use the services of the Visa system pay a fee to Visa and can provide efficient services to their customers.
Major types of Visa credit cards
Visa offers several credit cards that vary in features, eligibility, and reward programs.
The following Visa credit cards are well known:
- Visa Classic offers a 0% term, can have an annual income of $15,000 per household, with up to 3 additional card options, and allows to enjoy discounts for refueling cars. Visa classic cards are international cards accepted at millions of locations around the world;
- Visa Gold is a higher class than the Classic card. It allows for a higher credit limit and offers assistance services that come in handy when traveling;
- Visa Platinum is a premium card that allows for a higher credit limit, more detailed monthly statements, and special insurance offers, including auto insurance, convenient money transfers, and instant cash advances. Conveniently, travel bonuses can be redeemed without any lock-in periods. Customers can take advantage of the payment method. Customers are protected in case of loss or theft of their Visa Gold card and can arrange for the replacement of the card electronically and wait for a new card to be sent by mail. In addition, Visa Gold means security even during a business interruption, as the holder is insured against such occurrences. This type of card allows three additional cards and the ability to set their spending limits at the discretion of the primary cardholder;
- Visa Infinite has stricter eligibility criteria, and its benefits and bonuses are non-transferable. Visa Infinite Concierge makes it possible to stay connected with partner services, place convenient orders, and use a personal assistant when needed. Travelers can receive an automatic room upgrade, free Internet in their room, VIP guest status at the hotel, late check-out, and daily continental breakfast for the cardholder, and a guest to accompany them during the hotel stay. Visa Infinite requires an annual personal income of $60,000 or a minimum household income of $100,000;
- Visa Infinite Privilege is a top premium card available to high credit score customers whose income is at least $200,000 (it can be personal or household income). This card may have an annual fee, and additional cards may be issued for a fee for each additional card. Travelers appreciate the VIP airport lounge access, airport parking, and protection services, which include insurance products as a special offer.
Aside from the standard Visa credit card categories, three categories indicate how many features are included in the package for the customer:
- Visa Traditional;
- Visa Signature;
- Visa Infinite.
Visa Infinite offers numerous privileges:
- VIP status at hotels and room upgrade with daily complimentary breakfast;
- Concierge service around the clock on all days off;
- Booking of rental cars with this card opens special offers from the most famous car rental companies;
- Travel accident insurance helps you feel protected better. It applies to all means of transportation with a coverage of $500,000;
- Trip cancelation or interruption insurance allows for reimbursement even in the case of non-refundable offers;
- Inconvenience caused by a travel delay of more than 6 hours is compensated with a reimbursement of up to $500, including accommodation.
The higher the credit score and income, the more benefits are available to Visa cardholders.
The traditional Visa is a basic version, but it offers a number of benefits to cardholders:
- ID Navigator Identity Theft Protection allows the customers to be protected if their identity is compromised;
- Ship benefits: free membership with the option of same-day delivery if the value of the item exceeds $35;
- Seven days of exclusive participation in the pre-sale of events presented by Sofar and a free ticket as a bonus if the cardholder purchases a ticket during the pre-sale window;
- Free three-month membership in Skillshare courses and 20% discount when membership is renewed;
- 24/7 Visa support on all account issues;
- Support in case of lost or stolen Visa card, 24/7, in obtaining a new card and blocking the account;
- Hull damage for car rentals can be activated if the payment transaction was made with the Visa card and the cardholder declined the rental company's Hull Damage Waiver (CDW);
- No liability for unauthorized transactions;
- Roadside Assistance (chargeable), which provides towing, tire change, lockout service, and fuel delivery as needed;
- Emergency card replacement means that a new card can be shipped worldwide within 72 hours maximum and wire cash transfer to the cardholder via Western Union if approved by the bank.
Visa Signature is in the middle because it has more to offer compared to the lowest tier and does not include as many features as the Privilege package. Visa Signature offers cardholders:
- Extended warranty protection;
- Travel and emergency assistance;
- Year-end spending summary;
- Advisory service;
- Roadside Assistance;
- Collision damage waiver for car rentals;
- No liability for fraud;
- Emergency notification and replacement of card in case of theft or loss;
- Cardholder information service.
Note: Generally, the card issuer decides which features are available in every card category. Visa provides a general list of features available to cards bearing its label. In addition, some issuers offer their own add-on feat to make the package even better.
Visa Signature doubles the warranty for items that have a warranty period of less than one year. Visa adds an additional year to the warranty if it was originally one or two years, but this feature does not apply if the warranty was originally three years. There is a cap on claims: $10,000 per item and $50,000 per cardholder. Extended warranties are only available if offered by the manufacturer. Travel assistance includes and s information on medical services, weather, legal, and ligature support.
Consultation service is free, but it is associated with commercial services for which additional payment is required. The visa's auto insurance is not separate from the client's insurance, and the problem must first be reported to the client's insurance agency.
Note: Car insurance does not apply to expensive vehicles, i.e. vehicles with nine or more seats. Trucks are considered expensive vehicles and are also not covered. The exact details should be checked in your specific case. Some countries are not covered when it comes to rental cars (Israel, Ireland, Jamaica).
Best Visa Credit Cards
Among the best Visa credit cards are the following products:
- Scotiabank Passport® Visa Infinite Card is a credit card allowing you to save on foreign transaction fees. With this card, you can earn Scene+™ reward points on the purchases you make and redeem them for travel, shopping, or dining;
- BMO eclipse Visa Infinite Card® is a card with a nation-wide recognition that lets you earn 5x the points on takeout, rideshare and more;
- Scotia Momentum® Visa Cardis a credit card with a minimum credit limit of just $500 and an attractively low annual fee. This credit card provides cash back earning opportunities, though it doesn’t feature premium insurance coverages or exclusive benefits from Visa;
- RBC Avion Visa Infinite® with global airport lounge access is a good option for frequent travelers. With regular interest rates on purchases and cash advances, this credit card provides an opportunity to earn Avion reward points and redeem them further for your travel-related expenses;
- TD Business Cash Back Visa Card® gives you the possibility to earn $150 cashback when you spend $500 within 90 days after opening an account. 3% cashback on dining included. No annual fee.
Visa credit card features
- Visa products include debit, gift, prepaid, and credit cards that use the Visa network.
- Visa cards offer a range of identification options for their verification and payment methods. Visa cards have a 16-digit account number and may have a chip and a magnetic stripe.
- Owning Visa credit cards means that you always have your money with you. This type of card is accepted in over 200 countries and offers freedom in payments, cash withdrawals, and security in electronic payments on the Internet.
- With a Visa credit card, the cardholder can obtain information about the directory assistance service by fingerprint;
- Visa offers 24/7 customer service that works wherever the customer is;
- Extended warranty protection;
- Priority Pass lounges access for the cardholder and one guest;
- Visa credit cards are a secure and reliable way to pay for goods, services, balance transfers, etc.
- The Visa system supports reporting of lost or stolen credit cards and appropriate telephone assistance after verification by the customer;
- Travel medical emergency coverage;
- Trip interruption insurance coverage;
- Visa is the largest credit card company responsible for payments and processing;
- Visa allows for emergency card replacement (within as little as three business days) and emergency cash disbursement when a Visa customer needs cash immediately.
- Visa customers can rest assured that they are protected from unauthorized card use by third parties. This is possible thanks to Visa's zero liability policy, which means that unauthorized use of the card will not cost its rightful holder anything.
- Premium cards allow a higher credit limit, unlimited redemption of bonuses, travel and other services, savings on in-room Internet, and guest status VIP at hotels, including a special breakfast for the cardholder and his guests.
- Premium Visa cards allow for travel assistance, travel accident insurance, travel delay pay-out, and other benefits.
For more details on a particular Visa card, one should check with the card issuer and read all card terms of use carefully. Opening a Visa card account means that a credit card allows for good insurance coverage, and balance transfers, establishes even higher credit, and offers a significant welcome bonus for opening a credit card account and using it. That is why a high percentage of Canadian credit cards are Visa cards.
How do Visa credit cards work
Visa credit cards provide their holders with a credit line. The credit line amount (approved limit) depends on the credit card class. The credit line is revolving and can be drawn down at any time as needed, and any portion of the used credit line must be repaid, including fees and interest.
The utilized portion of the credit is a revolving limit that is released upon repayment. Each month, the borrower must pay an installment consisting of the principal amount and interest. If there is no way to repay the full amount, a minimal portion of the used money must be repaid.
Where to obtain a Visa credit card in Canada
A Visa card can be applied for at a bank or another financial institution that has entered into a partnership with Visa and offers services and uses its payment system. The Visa website provides a list of banks in Canada where you can apply for a Visa card in Canada.
Choose the institution that issues the Visa card depending on your desire for a bank or other issuing institution and your personal preferences regarding the bank where you receive financial services. It is possible to apply online using the web form of Visa, choose the right credit card product, and even get it by mail if such an option is allowed by the card issuer.
How to choose and apply for a Visa credit card in Canada?
Since many financial institutions and banks issue Visa credit cards, applicants are advised to shop around and thoroughly compare rates and eligibility criteria to choose the best Visa credit card that would cater to their needs.
Using the online credit card calculators on the banks' websites is worthwhile to find out where you will have to pay less for processing credit card transactions, cash advances, and other services offered by the product.
Once you have gathered enough information to decide on the best option, it is time to make a decision. Once you have decided on one of the Visa credit cards, you can apply (online on the issuer's website, through a mobile app, or offline, whichever is more convenient for you).
The Visa credit card can be received in person or with a power of attorney at the issuer's branch or by mail if this delivery method has been agreed upon with the borrower and the issuer. The Visa credit card should meet the criteria:
- income requirements;
- credit limit;
- fees;
- required benefits (travel insurance, miles, lounge access, cash back, etc.).
Requirements
To apply for a Visa credit card at any of the banks or other partner financial institutions in Canada, the applicant must meet the following criteria:
- Be of legal age as defined by federal or provincial legislation;
- Be a citizen of Canada;
- Have a permanent residency status document;
- The minimum income requirement is different for different Visa cards, for example, for a Platinum Visa the annual income requirements typically sit between $60,000-$80,000,
- Be able to sign legally binding documents;
- Have a good or excellent credit rating.
More detailed eligibility criteria should be obtained from the respective Visa credit card issuer, depending on the type of credit card you are applying for.
Pros and cons
Pros
- Visa credit cards belong to an extensive international payment network;
- It is possible to withdraw cash wherever a Visa card holder is because ATM and partnering institutions are many;
- Visa allows to have a zero interest period;
- Visa can help get discounts in partnering institutions;
- A Visa card can be quickly replaced in case the old one was stolen or lost;
- Premium Visa cards offer concierge services to the customers;
- There are multiple cashback categories;
- Flight delay insurance;
- Visa cards can be used for everyday purchases;
- It is possible to use Visa to redeem bonus points;
- Only some Visa credit card products (premium ones) have strict requirements about applicant income and household income.
- Security of transactions;
- Security and compensation if a Visa card was stolen or destroyed
- Using prepaid cards can ensure an increase in credit score;
- Car rentals at a good rate;
- Travel rewards and Air Canada perks;
- Visa credit card can be received not only at the bank but also by mail;
- It is possible to get a new card within three days if the previous one was lost or stolen;
- Visa has a vast network of cobranded hotels;
- If one has a good and excellent credit score, it means chances for approval are high (unless there are issues with the required income level);
- Valuable rewards for the cardholders;
- More than one authorized user can be added if needed;
- Premium cards offer comprehensive travel insurance coverage;
- Comfortable online banking;
- You can establish credit with a Visa credit card.
Cons
- Credit scores requirement on the level of good or excellent which may block some applicants;
- Some Visa credit cards require a certain minimum annual income of the applicant or applicant's household, alternatively;
- Promotional interest period is limited;
- There are penalty fees for late payments;
- Problems with repayment end up in lower credit scores;
- Some packages include annual fees;
- Depending on the package, primary and additional cardholders may have different tariffs for the card opening (additional cards may be chargeable);
- Only premium cards allow to have detailed statements as a part of the service package;
- Getting some Visa cards like Home Trust Preferred Visa: 2-3 weeks;
- Foreign transaction fees;
- Fees on recurring bill payments;
- Credit card balance transfer fees;
- Some Visa cards have limits on redeeming bonus points;
- Credit history check is required;
Some card issuers offer more benefits than others. For example, it takes time to find your best Visa card with a more significant welcome bonus on account opening, better purchase security, reasonable foreign currency fees, and awards (like RBC awards or other bonus programs from a different card issuer).
Visa cards are different, and each one has some advantages, but it is not necessary to get all types of credit cards; therefore, it is worth saving time to find the best credit card and weigh its advantages and disadvantages with your needs and expectations.
Some cards have higher income requirements, such as premium credit cards, and the borrower may not be eligible for them at the moment. Other cards may have an annual fee that you want to avoid, but there are so many offers that it's always possible to find a customized credit card option and use it as a responsible borrower.
Visa vs. Mastercard
Neither Visa nor MasterCard issue credit cards directly to cardholders. Instead, this is done through partner financial institutions that pay Visa or MasterCard a fee for using their services and brand.
Both Visa and MasterCard are accepted worldwide. Visa is accepted by over 27 million merchants in 200 countries, while over 29 million merchants accept MasterCard.
Visa has different names for its card categories compared to MasterCard. Visa offers Classic / Gold / Infinite /Infinite Privilege Levels. MasterCard offers Classic / World / WorldElite credit cards. Visa and MasterCard offer purchase protection and extended warranties to their holders. MasterCard offers better access to airport lounges. Visa does not have lounge access, but it is included in the Visa travel experience through issuing banks with such partnerships. Visa and MasterCard credit cards can have different fees, but these depend more on the card issuer. It's worth paying attention to the difference between each card issuer's rates for Visa credit cards and MasterCard credit cards.