Get App
What’s the difference between Mastercard and Amex?
Credit cards from different banks and financial institutions in Australia typically use one of a relatively small number of payment processing networks to manage the transactions. Two of these networks are Mastercard and American Express.
Mastercard is a payment processing system only, so it does not issue any cards directly to customers. Instead, it allows financial institutions to brand their cards as ‘Mastercard’ and use the Mastercard payment processing system.
An ‘Amex’ card is typically issued by American Express. While Amex is also a payment system, American Express issues its own Amex cards directly to customers, finances Amex payments and processes the transfers.
Where are Mastercard or Amex cards accepted?
Mastercard is widely accepted in more than 210 countries and territories and in more than 150 currencies.
While American Express does not publish a list of worldwide locations for Amex cards, it does say that in 2024 it added over 610,000 new places across Australia where Amex is accepted.
In Australia, it is usually cheaper for merchants to accept a Mastercard payment compared to an Amex payment. Thus, Amex cards are generally thought to be less widely accepted than Mastercard.
According to data from the Reserve Bank, the average merchant fee is 0.9% for Visa and Mastercard credit card transactions and 0.5% for Visa and Mastercard debit card transactions. Amex fees are more expensive, with an average merchant fee of around 1.3%.
Some businesses charge card surcharges to cover the cost of accepting card payments. The Australian Competition and Consumer Commission (ACCC) has banned businesses from charging excessive payment surcharges for some payment types, including Mastercard credit, debit and prepaid cards.
But there are some payment types not covered by the ban, including Amex cards issued directly by American Express. That means the ACCC cannot take action if a business charges a customer more than what it costs them to process the payment.
The RBA is also considering a ban on eftpos, Mastercard and Visa card surcharges, which could potentially save Australians up to $1.2 billion per year.
Which has a better rewards program: Mastercard or American Express?
The rewards you receive with a Mastercard credit card will depend on the financial institution you bank with, as well as the specific card you hold.
Mastercard categorises its credit cards into:
- Standard
- Platinum
- World
- World Elite
Each of these credit card categories offers different benefits. Depending on your card type and issuer, you may be able to access concierge services, shopping insurances, travel assistance, and other special offers. Cardholders may also have access to Mastercard’s Priceless Specials on travel, sports, food, shopping, arts and culture, and entertainment.
The rewards you receive with an Amex card will vary depending on the card type. American Express offers Amex Rewards credit cards that allow you earn Membership Rewards points on purchases, which can be redeemed on travel and holidays, shopping, experiences, gift cards and more.
Qantas Amex cards are also available, which allow you to earn Qantas Points on purchases. If you have a premium card, you may also be able to access concierge services, shopping insurances, travel insurance and other services, benefits and special offers.
Should you choose Mastercard or Amex?
The best choice for you between Mastercard and Amex will depend on your personal circumstances and how you intend to use your card. For example, Mastercard is generally more widely accepted, so it may be ideal if you are choosing a credit card for convenience.
But if your priority is rewards, American Express offers its own rewards program where you can earn Membership Rewards points, and some cards allow you to earn Qantas Frequent Flyer points. Meanwhile, the rewards you can get with a Mastercard credit card will largely depend on the provider and card type.
Whatever you’re looking for in a credit card, make sure you carefully consider the card as well as the payment network, and compare factors like the interest rate, fees, features and rewards on offer. Consider the Key Facts Sheet and Target Market Determination (TMD) before making a purchase decision. You can contact the product issuer directly for a copy of these documents.
