New Information about Credit Card

The third quarterly report shows that Visa ( V - news - people ) recorded profits of $1.02 per share or $763 million. Compared with the same period last year of 10.9 billion, Visa with the Sum (volume or amount) of business transactions increase of 12 percentage points, which defeated the Street's call for 91 cents per share. The report also suggested that more customers are using the card, the number of cards people carrying a Visa brand rose by 5%.


The collect fees business model avoid the credit risk of Visa company. With solid earnings per share and improved operating revenue, Visa posted a healthy start to fiscal 2010, which make distance from its rival MasterCard.

Reported just after the Wednesday's closing bell rings, Visa's result is really positive, while followed by rival MasterCard's latest quarterly earnings, through investigation analysis, Thomson Reuters expect MasterCard's profit to jump 32% to $2.47 per share.

It is differ from banks and other lenders, Visa and MasterCard took the business model by allowing financial institution partners to issue their branded cards, in order to avoid credit risk. This model also helped both of them avoid the pitfalls of many other financial institution of competitors.

The issued new regulations that came into effect on Feb. 23 about the card issuers still exist a lot of influences and restrict an element. Shares of Visa fell .6% to $83.52. Based on other major credit card issuers, including Bank of America ( BAC - news - people ), Citigroup ( C - news - people ) and JPMorgan Chase ( JPM - news - people ) survey, the results were still negative, improved by credit card metrics, even with the challenges. Results were announced on Thursday shows that : shares of Visa declined 6% to $83.52,but gained 2.4% after hours. Shares of MasterCard down 2% to $247.58 but get back 1% in the extended project.


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