Discover vs. Visa: How They Differ
Key takeaways
- The main difference between Discover and Visa is that Discover is a credit card issuer and card network, while Visa is only a credit card network and does not issue credit cards.
- Although Discover isn’t as widely accepted as Visa, it does have good domestic acceptance and a strong international acceptance in some regions.
- Discover offers several good credit card products (including cash back and credit-building cards). But because many different banks and credit unions issue Visa cards, there’s a much broader variety of cards to choose from and more supplemental benefits.
Discover card vs. Visa
| Discover | Visa | |
|---|---|---|
| Issuer or processing network? | Both | Network |
| Domestic acceptance | 10.6 million merchants* | 10.9 million merchants* |
| International acceptance | 42.9 million merchants* | 44.4 million merchants* |
| No foreign transaction fees | (depending on the card) |
|
| Options for low credit scores | ||
| Good cash back card options | ||
| Good travel card options | ||
| Business card options | ||
| Car rental insurance | (depending on the card) |
|
| Travel insurance | (depending on the card) |
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| Purchase protections | (depending on the card) |
*Source: 2018 Nilson Report
Credit card issuer vs. network
First, it’s important to understand the difference between a credit card network and a credit card issuer. Discover is both a credit card issuer and a credit card network while Visa is only a credit card network. A network is responsible for deciding where credit cards are accepted and handles the transactions between merchants and credit card issuers. The four major networks are Visa, Mastercard, Discover and American Express.
On the other hand, a credit card issuer is responsible for issuing your credit card. The issuer designs the rewards programs, decides who is accepted, and sets your credit limit, the APR and all other terms. The biggest credit card issuer in the U.S. is Chase.
Winner for domestic acceptance: Visa
While you might think that Visa is much more widely accepted than Discover, the numbers show that the gap between the two credit card networks is much closer than you might think. A 2018 Nilson report on merchant acceptance showed that Visa was accepted by 10.9 million merchants in the United States, while Discover was only slightly behind, with 10.6 million merchants taking Discover cards.
Winner for international acceptance: Visa
The same Nilson report showed a relatively small acceptance gap between Discover and Visa worldwide, with Discover accepted at 42.9 million merchants with Visa being accepted at 44.4 million.
However, although the numbers appear similar, the range of acceptance is much lower for Discover and the acceptance rate varies by country. In many countries, Discover users will have to rely on Discover’s partnership with the Diners Club network. The Diners Club network is limited outside the U.S., and you may have a hard time using Discover abroad.
Winner for amount of credit card options: Visa
Because many credit card issuers use the Visa processing network, there are many more options for Visa cards than there are for Discover. Discover has a relatively limited number of credit cards (only seven cards total) compared to Visa, which features hundreds of cards across many different issuers. While both Discover and Visa offer credit cards for varying credit score ranges, Discover currently has no business credit card options.
See how Discover credit cards compare to Visa credit cards:
| Discover | Visa | |
|---|---|---|
| Types of credit cards offered | Personal only | Personal and business |
| Wider acceptance (including international) | ||
| $0 annual fee | Depends on the card | |
| No foreign transaction fees | Depends on the card | |
| 0% intro APR options | ||
| Our top card pick | Discover it® Cash Back | Chase Sapphire Preferred® Card |
Winner for rewards programs: Both
Discover and Visa both offer valuable rewards programs. Although you’ll have more options for different rewards programs with Visa cards, you can earn lucrative cash back rewards with Discover cards.
Cash back rewards
You can find good cash back cards on both networks, and choosing the right credit card for you will depend on your specific financial situation.
- For example, the Discover it® Cash Back lets you earn 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically.
- With the Chase Freedom Unlimited®, you’ll enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
One great feature of Discover’s cash back program is that you’ll have all of your cash back doubled at the end of the first year of membership.
Travel rewards
Discover’s network of credit cards is mostly focused on cash back rewards, so it falls short if you’re more interested in travel rewards. In fact, it only offers one travel credit card – the Discover it® Miles which lets you earn 1.5 miles per dollar on all purchases.
The Visa processing network, on the other hand, offers a wide variety of travel credit cards, like the Chase Sapphire Preferred® Card, Capital One Venture X Rewards Credit Card or the World of Hyatt Credit Card. If you want to earn airline miles, hotel points or other travel rewards, you’re likely to be better off with a Visa card.
Winner for other benefits: Visa
While Discover cards offer basic benefits such as free access to your FICO credit score and zero fraud liability, Visa cards provide more perks – especially for travel purchases. There are three different levels of Visa card benefits (Visa Traditional, Visa Signature and Visa Infinite). Each tier of Visa card comes with a higher level of benefits, so premium Visa cards offer a higher level of both protections and benefits.
| Discover card | Visa Traditional | Visa Signature | Visa Infinite |
|---|---|---|---|
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Why choose Discover?
Discover is a good choice if you plan on spending in the U.S. and enjoy the benefits the Discover network provides. Discover may be ideal if:
- You already have a card from another issuer. If you have a card from a more widely accepted network, then you may want a Discover card to maximize your rewards.
- You’re a student. Discover offers great options for students that provide the groundwork to build responsible credit behavior.
- You’re new to credit or have bad or poor credit. Discover offers an excellent selection of cards for consumers looking to establish or rebuild credit.
Why choose Visa?
Visa is a great choice for people who want a credit card that is widely accepted and comes with more comprehensive benefits. A Visa credit card may be a better fit for you if:
- You’re a frequent traveler. While Discover only offers one travel card, Visa offers a variety of airline, hotel and general travel cards that allow you to earn rewards to use toward future travel.
- You plan to travel abroad. Traveling with a Visa credit card tends to be a safer bet, since Discover’s acceptance worldwide is limited.
- You want access to more benefits. Although the perks you receive will depend on which Visa card you have, you’re more likely to get access to benefits like extended warranty, purchase protection or car rental insurance with a Visa card.
Frequently asked questions
No, Discover cards are not Visa cards. Discover and Visa are two different credit card payment networks, and work separately. Discover credit cards operate on the Discover payment network, while Visa credit cards are processed on the Visa credit card network. Discover is also the credit card issuer for cards that use the Discover processing network, while many different banks (including Chase and Bank of America) issue credit cards that use the Visa network.
Yes, you can have both Visa and Discover cards. If you want, you can even have multiple Visa cards and multiple Discover cards.
You can prequalify for all Discover cards on their website and select Visa cards. Since Visa cards are offered from a range of issuers, prequalification options vary. Always check if a card has the option to prequalify before you apply, since prequalification won’t damage your credit score and is a great way to shop around for the best credit card.
No, you cannot combine benefits from Visa and Discover cards. The benefits each issuer provides are unique, and you can’t combine those benefits or rewards you earn from Visa with the benefits or rewards you earn from Discover. For example, if you make a purchase on a Discover card, you can’t use the extended warranty feature from your Visa card.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
The information related to the Discover it® Cash Back, Chase Sapphire Preferred® Card, Chase Freedom Unlimited®, Discover it® Miles, Capital One Venture X Rewards Credit Card and World of Hyatt Credit Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
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