Mastercard and Visa classifications

[Anonymous]

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@zerofire wrote:

Basicly Mastercard and Visa are just the network that your card runs on. They are like the ACH for checks. Those companies make the names of the tiers and check that the issuer is not abusing customers by removing too many perks. Mastercard even goes ahead and supervises standardised perks for all members.

The issuer such as Citi and Capitol One will build the card and attach the perks to it. They will also select which network the card will run on and the tier.Generally the issuer will want a higher tier since they know most people will not use the perks but it still makes the card cooler to have. Would you really have liked your cards as much if they were not Infinite, Signature, World, or World Elite?

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I don't think that's the reason at all!   By making higher tier, the issuer gets more in swipe fees (and, as you say, with people not necessarily using the perks, thats all increased profit).   Outside this type of forum, I suspect most people don't know about tiers and have no idea what tiers their cards (or perhaps just "card") is.

And for me, the answer to the last is "yes".   Some of my most valuable cards have been low tier.

[wasCB14]

My Sallie Mae was a Platinum MC. I don't need an extended warranty on a gallon of milk or a tank of gas.

My Freedom is still Platinum Visa. The rewards are the same.

If protections really matter for a purchase, I go with Schwab Platinum, Costco, or CSR for great issuer-provided benefits.