Westpac ditches MasterCard

The bank will now only issue Visa cards for most customers.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In an attempt to streamline the number of products it offers to customers, Westpac (ASX: WBC) customers will now be issued with Visa (NYSE: V) cards only – a change from the previous policy where new customers were given the choice between a Visa or Mastercard (NYSE: MA) credit card.

Whilst existing MasterCard card holders will be able to renew their cards without having to make the change, Rachel Slade, Westpac's general manager of business improvements, said "in reality, customers don't really need all that product" – referring to the 24 different credit cards and 300 products offered to customers by the bank.

Meanwhile, each of the other major banks still offer a choice between either Visa or MasterCard, although ANZ (ASX: ANZ) has a preferred relationship with Visa and Commonwealth Bank (ASX: CBA) prefers to issue customers with MasterCard credit cards.

Regarding the bank's decision, Michael Ebstein, the head of credit card consulting firm MWE Consulting, said "at the end of the day, the thing that is most important for cardholders is that it is accepted where they want to use it. Whether it is Visa or MasterCard is really irrelevant, given the prices and the value-added services are determined more by the issuer than by Visa or MasterCard."

Although the bank will no longer offer MasterCard credit cards for most of its products, the top of the range "Black" cards will still be issued as either MasterCard or American Express.

The banks have become heavily overpriced and are unlikely to deliver market-beating returns. Instead, are you interested in our #1 dividend-paying stock? Discover The Motley Fool's favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2013-2014."

More reading


Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »