In this article, we will take a look at the major credit card companies and networks in the market today. We will also provide a brief overview of each company’s strengths and weaknesses.
Banks and credit unions that provide credit cards to individuals and small business owners are known as credit card businesses.
Credit card businesses also provide account services to cardholders by invoicing for transactions, taking payments, providing incentives, and other activities. Credit card firms include the four main card networks: Visa, Mastercard, American Express, and Discover.
Key Takeaways
- What to know about the credit cards
- How credit cards work for both credit card payment and credit card interest
- The list of major credit card companies and Networks
- Answer to most likely frequent ask questions you will like to know
What Are Credit Cards?
A credit card is a tiny rectangular piece of plastic or metal issued by a bank or financial services company that allows cardholders to borrow cash and use it to pay for goods and services at businesses that accept cards.
Cardholders must refund the borrowed amounts, plus any applicable interest and additional agreed-upon charges, in full by the billing date or over time.
In addition to the usual credit line, the credit card issuer may provide cardholders with a second cash line of credit (LOC), which allows them to borrow money in the form of cash advances, which may be accessible through bank tellers, ATMs, or credit card convenience checks.
Compared to transactions that access the primary credit line, such cash advances often have different terms, such as no grace period and higher interest rates.
Issuers often determine Borrowing restrictions depending on an individual’s credit rating. Most businesses allow customers to make purchases using credit cards, which remains one of the most common payment methods for purchasing consumer products and services.
Credit cards have a higher annual percentage rate (APR) than other types of consumer lending. Interest charges on any unpaid balances charged to the card are typically imposed approximately one month after a purchase is made (unless there is a 0% APR introductory offer in place for an initial period after account opening) unless previous unpaid balances were carried forward from an earlier month—in which case no grace period is granted for new charges.
How Credit Cards Work
The Process Of Credit Card Payment
Credit card payments are due on the same day each month unless the due date falls on a weekend or holiday. When the monthly cycle (also known as a billing or statement period) finishes, you’ll receive your statement along with the bill around three weeks sooner.
For instance, if your billing cycle finishes on March 31, you may receive your statement and charge on that day. The next billing cycle begins on April 1, and the prior billing cycle bill is due around April 22.
The overlapping timeframes might be perplexing, but there are three key figures to remember:
The balance on your statement at the end of your billing period:
If you pay your account balance in whole each month, you will not be charged interest on purchases.
Minimum payment:
Make a lower minimum payment on the due date to keep your account in good standing and prevent late payment fees.
You may see your current balance by logging into your account:
It will include recent transactions, such as payments and purchases, that happened after your most recent billing period.
You don’t have to pay this money immediately, but it’s helpful to keep track of if you’re budgeting.
You may also set up payment reminders or allow automated payments from a linked bank account. You may be able to select whether you wish to pay the minimum, the whole statement balance, or another amount with autopay.
The Process Of Credit Card Interest
Credit cards offer a variety of interest rates, or APRs, which affect how much interest you’ll pay when you use your credit card in various ways.
Purchase APR:
The interest rate on purchases made using your credit card.
Transfer of funds APR:
The interest rate for balance transfers to a credit card.
Advance payment APR:
The annual percentage rate charged on cash advances and other cash-like items, such as a wire transfer or lottery ticket.
Penalty APR:
A high-interest rate that may apply if you miss a payment.
A promotional APR is a low (occasionally 0%) APR that may apply to purchases, debt transfers, or both. These usually do not apply to cash advances, which may begin earning interest right away.
Most credit cards also feature a grace period, typically 21 to 25 days between the end of your statement closure date and the bill’s due date.
If you pay your account balance in full by the due date, you will not be charged interest on your purchases, and your grace period will be extended. If you rotate a portion of your balance, you forfeit the grace period, and your assets may begin to charge interest daily.
List Of The Major Credit Card Companies And Networks
We’ve discussed some of the top credit card firms, their credit card network market share, and what each brings to the table.
1. Barclays
In 1966, Barclays introduced the first credit card program in the United Kingdom. With the acquisition of Juniper Financial Corporation in 2004, it entered the U.S. market.
The company’s credit card business in the United States was known as “Barclaycard U.S.” until 2008, when it adopted its parent’s name.
Barclays is well known for its travel rewards credit cards and co-branded credit cards, which collaborate with well-known businesses such as United Airlines, L.L. Bean, and the National Football League. For acceptance, Barclays credit cards typically demand strong or outstanding credit.
- 3.7/5 average user rating for Barclays
- No deferred interest is used.
- Friendliness to Small Businesses: 85%
- 0% – 3% Foreign Transaction Fee
2. Capital One
This firm was founded in 1995 and is headquartered in McLean, Virginia. It operates around 1,000 branch offices in the District of Columbia, Louisiana, Maryland, New York, New Jersey, Texas, and Virginia.
Capital One is well-known for its everyday banking products, personal loans, vehicle loans, and credit cards.
Capital One has created a reputation in the credit card industry by providing deals for consumers with all credit levels, straightforward rewards programs, and low fees.
The Venture Rewards Card from the corporation has long been considered one of the top travel rewards cards on the market. The Quicksilver Card is one of the most significant cash rewards cards for regular use. And the Spark Cash cards are among the best deals for small company owners.
Capital One was also the first credit card company to eliminate international transaction fees on all cards.
- The average user rating for Capital One is 3.7 out of 5 stars.
- Yes, deferred interest is used.
- 60% Small Business Friendly
- 40% – 87.5% Rental Car Insurance
- There is no foreign transaction fee.
- 78% – 87% for Extended Warranty
- 64.75% – 82.35% Travel Insurance
- 75% price protection
- 80.5% Return Protection
- Purchase Security: 70% – 79%
3. Bank of America
Bank of America is one of the world’s largest financial institutions, not to mention one of the world’s largest corporations. The banking behemoth, headquartered in Charlotte, NC, employs around 205,000 full-time people today and generates more than $91 billion in yearly revenue.
In addition to credit cards, Bank of America provides users with bank accounts, investment vehicles, and financial management services. Corporate and investment banking are additional sections of the firm.
In 1904 the Bank of America was established in San Francisco. However, it began as the Bank of Italy met the demands of America’s burgeoning immigrant community.
- Bank of America has had an average user rating of 3.9 out of 5 stars.
- No use of deferred interest
- 100% Small Business Friendly
- 78.5% – 82.50% Rental Car Insurance
- 0% – 3% Foreign Transaction Fee
- 61% – 80% Extended Warranty
- 32% – 82.85% Travel Insurance
- 55% price protection
- 76% Return Protection
- 70.5% – 82.5% Purchase Protection
4. American Express
American Express was founded in New York City in 1850 and operated in over 175 countries. According to the number of cards in circulation, Amex was the sixth most extensive credit card network in the United States as of 2021. It was also the second largest credit card issuer in purchase volume.
American Express is also noted for being the world’s largest issuer of charge cards and for marketing its goods to high-income people with good credit.
As a result, while American Express is a fantastic supplier of attractive rewards credit cards, it is not actively invested in the credit improvement market. However, it is worth noting that Amex has just teamed with Walmart to provide the Bluebird® American Express® Prepaid Card.
- 3.9/5 average customer rating for American Express
- No use of deferred interest
- 60% Small Business Friendly
- 88.50% Rental Car Insurance
- 0% – 2.7% Foreign Transaction Fee
- 95% – 99% Extended Warranty
- 31.45% – 41.6% Travel Insurance
- Price Protection: Not Available
- 76% Return Protection
- Purchase Security: 70% – 92%
5. Discover
Discover originated as a financial services firm Dean Witter branch to issue the company’s Sears credit card. Discover Financial Services formed a separate entity in 2007.
Discover is well-known for providing cash incentives and was the first to implement a cash-back program. However, the corporation currently provides a diverse selection of credit card options, despite many having highly identical names.
Several cards use the “Discover it” word, offering 0% intro APRs, various rewards, and additional bonuses such as a first-year rewards match. Discover also provides co-branded cards in collaboration with several merchants and colleges. Any of Discover’s credit cards do not charge foreign transaction fees.
- 4.0/5 average user rating for Discover Reviews
- No use of deferred interest
- Friendliness to Small Businesses: 85%
- Insurance for rental cars is not provided.
- There is no foreign transaction fee.
- Extended Warranty: Not Available
- Travel Insurance is not provided.
- Price Protection: Not Available
- Return Protection: Not Available
- Purchase Protection: Not Available
6. Citibank
Citibank is the consumer banking branch of Citigroup, a financial services firm. The City Bank of New York was established in 1812. In terms of outstanding balances, it was the second largest bank in the United States as of 2021.
Most of Citibank’s credit card offerings are aimed toward those with above-average credit. The brand is well-known for providing cards with lengthy 0% introductory periods and a diverse range of perks.
Citi has two famous reward programs, ThankYou and Double Cash, and co-branded agreements with American Airlines and Expedia.
- Citibank has a 3.7/5 average user rating.
- Yes, deferred interest is used.
- 60% Small Business Friendly
- Insurance for rental cars is not provided.
- 0% – 3% Foreign Transaction Fee
- 91% for Extended Warranty
- Travel Insurance is not provided.
- Price Protection: Not Available
- Return Protection: Not Available
- Purchase Protection: Not Available
7. USAA
USAA is a full-service financial company that provides credit cards, banking products, insurance, and investment services to military personnel and their families. As of 2021, USAA is the ninth biggest credit card issuer in the United States regarding purchase volume and outstanding balances.
- USAA Bank has a 3.6/5 average user rating.
- No use of deferred interest
- N/A Small Business Friendliness
- 92.50% Rental Car Insurance
- There is no foreign transaction fee.
- 85% for extended warranty
- 62.9% have travel insurance.
- Price Protection: Not Available
- Return Protection: Not Available
- Purchase Protection: Not Available
8. PNC
PNC Financial Services Inc., better known by its ticker symbol PNC, is the seventh most prominent bank in the United States in total assets and deposits and the eleventh largest credit card issuer in purchase volume.
The PNC brand is most vital east of the Mississippi River, where most of its retail bank branches are situated, as a regional player with a footprint in 19 states and the District of Columbia.
PNC has solid links to Pittsburgh, where its corporate headquarters are located. In truth, PNC Park is the home of the Pittsburgh Pirates, the city’s professional baseball franchise.
- PNC Rating: 3.7/5 on average from users
- No use of deferred interest
- 100% Small Business Friendly
- Insurance for rental cars is not provided.
- 0% – 3% Foreign Transaction Fee
- Extended Warranty: Not Available
- Travel Insurance is not provided.
- Price Protection: Not Available
- Return Protection: Not Available
- Purchase Protection: Not Available
9. Wells Fargo
Wells Fargo was created in 1852 to address the financial requirements of California gold rush pioneers. That’s not the only exciting thing about the bank.
Wells Fargo possesses the first banking charter ever awarded by the United States government, which it obtained through the company’s 2008 acquisition of Wachovia. As of 2021, Wells Fargo ranked third in terms of total assets and deposits among U.S banks.
However, Wells Fargo’s dominance in the credit card industry is not as comprehensive as its influence in daily banking. Based on purchase volume, it is the eighth largest credit card provider in the United States.
- The average user rating for Wells Fargo is 3.8 out of 5 stars.
- No use of deferred interest
- 70% Small Business Friendly
- Insurance for Rental Cars: 87.5%
- 0% – 3% Foreign Transaction Fee
- Extended Warranty: Not Available
- 43.6% – 76.2% Travel Insurance
- Price Protection: Not Available
- Return Protection: Not Available
- Purchase Protection: Not Available
10. U.S. Bank
U.S. Bank is the country’s fifth largest bank by total assets, fourth most significant by several branches, and seventh-most prominent credit card provider by purchase volume. U.S. Bank is well-known for its credit card perks.
The firm provides a variety of co-branded credit cards in collaboration with corporate partners such as Kroger, Club Carlson, Ace, and Harley-Davidson. Under the FlexPerks brand, the firm also offers U.S. bank rewards cards.
It’s worth noting that, although many of the big issuers known for their incentives give practically solely to those with above-average credit, U.S. Bank extends credit to people with all credit levels.
- 3.9/5 average user rating for U.S. Bank
- No use of deferred interest
- Small Business Amenity: 45%
- 78% – 88.5% Rental Car Insurance
- 0% – 3% Foreign Transaction Fee
- 73% – 82% for Extended Warranty
- 43.5% – 73.1% Travel Insurance
- Price Protection: Not Available
- 80.5% Return Protection
- Purchase Security: 91%
Read Also:
How To Get Instant Approval Virtual Credit Card With Instant Use
How To Build Credit Without A Credit Card (2023 Guide)
How To Accept Credit Card Payments In 7 Simple Ways
Conclusion
Credit cards, when used correctly, maybe a credit-building instrument. You might be able to build and maintain good credit by paying your bills on time, keeping your debt low, and only applying for credit cards when required.
Also, keep in mind that the best way to avoid interest charges and build a strong credit score is to make your payment in whole each month.
As the globe and our transactions become increasingly global, the industry that issues credit cards is a dynamic one that is constantly growing. Take your time researching credit card offers and the company behind them.
It doesn’t matter if it’s about your credit score, a rewards program, or the company that supplies the cards.
FAQS
Who Is The Top Issuer Of Credit Cards?
In terms of both purchase volume and card volume, Chase is perhaps the largest credit card provider in the United States. Chase has the most significant purchase market share and the second-highest number of cards.
What Kind Of Card Is Capital One?
Capital One offers both Visa and Mastercard credit cards. Visa and Mastercard are card networks, as opposed to Capital One, which is a bank.
What Is Better Visa Or MasterCard?
Most people make little difference whether they obtain a VISA or a MasterCard. Both are equally safe and provide comparable advantages. While VISA has a somewhat more significant market share and more transactions globally, VISA and MasterCard are widely accepted by retailers.
Why Is Everyone Switching From Visa To Mastercard?
What you need to know about the massive shift affecting millions of Visa debit card customers due to the fee war. MILLIONS of individuals have had their Visa debit cards changed with Mastercards as part of an industry battle with the payment giant.
What Is Credit Card Accepted Everywhere?
Visa and Mastercard are accepted in almost any place that accepts credit cards. With a few exceptions, every location that gets one will also receive the other.
What Does Visa Stand For?
Visa International Service Association (credit card company)
You can learn more from the video below:
About Author
- I am a professional article and e-book writer with 4 years of experience, I write on well research content on cryptocurrency, stocks, loans and finances.
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