Visa credit card rewards

It's easy to think that all creditcards are pretty much the same but this is not true. The choice of credit cardyou make can have a big impact on acceptance in stores, interest charges andfees and returns from reward schemes.

Bank cards are owned by banks, andeach one has its own set of terms and conditions. To facilitate payments andbroaden its use in more places, the bank usually joins a credit-cardinterchange network either Visa or MasterCard or, in many cases, both networks.By joining these networks a bank's card can enjoy countrywide and worldwideacceptance.

Therefore often see cards bearingboth the Visa (or MasterCard) logo along with the issuing bank's logo. Visacards do not come directly from Visa; only the Visa-member bank issues the Visacredit cards directly to consumers.

Travel and entertainment cards areissued directly by the card providers, such as American Express and DinersClub, but may be distributed through banks. The issuer, American Express, forexample, is the credit provider not the bank.

Credit Limits

Visa cards provide revolving credityou can choose to pay the bill outright before the due date each month or alower amount that meets the minimum due. Due to the revolving credit facility,a Visa credit card comes with a pre-set spending limit.

Unlike Visa cards there are someAmercian Express cards available with no pre-set credit limit. American Expresscards are charge cards and do not provide a revolving credit. Normally you arerequired to pay in full the amount owing each month.

Worldwide Acceptance

The biggest issuer by far of traveland entertainment cards is American Express. But despite its size, its numbersare minuscule compared to number of Visa cards in circulation American Expresscards are only about 15% of the total outstanding Visa credit cards (and about14% of all outstanding MasterCard cards).

There are at least 21,000 memberbanks in Visa, which has helped gain wide acceptance for Visa credit cardsacross the globe. Over twenty secen million merchants throughout the worldaccept Visa credit cards. While many places will accept AMEX cards the numberof retailers is far less.

Travel and entertainment cards wereoriginally designed for frequent travellers. They used to be accepted mainly intravel- and entertainment-related establishments (hotels, restaurants,airlines), but now they are present in all other types of businesses(department stores, drugstores, gas stations, etc.).

Rewards credit card programs

The original travel andentertainment concept of American Express led it to develop a full array ofservices, including frequent flyer miles, generous travel insurance cover,luggage insurance, etc. American Express has also created some of the mostaccessible rewards credit card schemes.

Whilst the basic American Expressrewards credit card gives 1 point for every dollar spent, which is the same asVisa credit cards, the premium American Express reward credit cards earn 2 ormore points for each dollar. Points earned on American Express rewards creditcards will never expire and are not subject to any cap which means you do nothave to go into a spending frenzy to make sure you have enough points to redeembefore expiry date.

CANNEX has awarded 5-star ratings tothe American Express rewards credit card programs, in recognition of the greatvalue provided to consumers.