Difference between American express and visa?

Answer 1

American Express and Visa have three main differences which directly impact the consumer. (1)Who issues the cards. For visa, the cards are usually issued through banks (but can be issued by other institutions as well, ex. credit unions, etc.) and are underwritten by the Visa Credit Corporation. American Express on the other hand, usually issues their cards on their own behalf (but exceptions exist, for instance the British Airways American Express Card). (2) The main difference which concerns people is the a visa card is a credit card, while an American Express card is a charge card. The difference refers to whether the debt incurred on the card is revolving or not. On a Visa card, the debt is revolving, which means the total balance DOES NOT need to be paid off in full every month, but instead a monthly payment is required. For American Express cards, the debt is not revolving, which means the balance in full is expected to be paid off every month. (3) American Express charges merchants a higher fee than most credit or charge card companies, so fewer places will accept American Express over a card like Visa and it is more difficult to get approved for an American Express than a Visa. Because of this fact, American Express will tend to offer more rewards and exclusive opportunities than Visa, but then again, all these opportunities come with a price.