There are many differences between these three card brands. The biggest and most important distinction however is the fact that Mastercard and Visa are payment processing systems only. They do not issue cards themselves and they do not provide any credit or lending facilities either. Instead, they act as middle-men between financial institutions and businesses in order to process their transactions.

American Express, on the other hand, issues its own cards, authorises purchases and settles payments between customers and businesses.

When it comes to worldwide acceptance, both Mastercard and Visa are two of the most accessible card networks. In contrast, American Express has a much lower acceptance rate, traditionally due to its higher processing fees for businesses. As it can be more challenging to find businesses that accept American Express compared to other networks, it’s always a good idea to carry a backup card with you just in case the business doesn’t accept American Express.