Visa Profit Slips But Beats Estimates; Reform Impact Unclear

Visa Inc., the top credit and debit card payment network, posted its third-quarters profit at $716 million, or 97 cents a share, slipping 2 percent compared to a year ago but beating Wall Street estimates. For its quarter ended June 30, the transactions processing giant exceeded analysts’ expectations of 93 cents per share.

Retailers Win, But MasterCard, Visa Catch Break in Fee Deal

Retailers large and small are closer to a years-long goal of lower “interchange fees” – the per-transaction cost charged by banks on the MasterCard and Visa debit cards used by customers. But under a new compromise, the network card giants got a break by dodging regulation now directed at major banks that issue the debit cards, including Bank of America, JPMorgan Chase, Citigroup and Capital One.

Internet Gambling Law: Card Networks Must Now Detect Betting

Beginning June 1, credit and debit card processors must have “reasonably designed policies and procedures” in place to detect if U.S. transactions are tied to bets placed with Internet gambling sites, according to a finalized rule by the Federal Reserve. But the intended crackdown on U.S. online wagering that was behind the 2006 law taking effect tomorrow is far from certain as its power to enforce such activity remains vague.

Online Gambling: Credit Cards, Poker Sites Brace for June 1 Law

As a contingent of House Democrats push a framework for legalizing and taxing online gambling, Internet poker parlors and other betting sites are bracing for June 1 – the effective date of a 2006 U.S. law that restricts the use of credit cards and other payment methods for placing illegal online bets. The law was enacted by the Bush Administration with the intent of cracking down on financial transactions that enable the growing popularity of online gambling by Americans.

Will Consumers Win with Regulated Debit Card ‘Swipe’ Fees?

After years of attempting to even get a bill on the floor of Congress, business groups finally saw enough support to draw a bipartisan vote in the Senate for the first-ever regulation over the fees charged merchants by payment networks Visa and MasterCard. In a 64-33 vote, the U.S. Senate Thursday approved an amendment loosening the grip Visa and MasterCard have enjoyed on debit card transaction fees passed on to the banks that carry their cards.

Senator: Reform Unfair Credit, Debit Card ‘Swipe Fees’

A leading Democratic senator wants the Federal Reserve to determine if interchange fees – charged businesses every time a customer uses a credit or debit card – are “reasonable and proportional” to the costs of a transaction. Sen. Dick Durbin, D-Illinois, said he will be introducing an amendment this week calling for the first restrictions on the controversial “swipe” fees that merchants have to pay MasterCard and Visa.

MasterCard, Visa Profits Signal Credit Buying Upswing

As consumers started spending more in the first quarter, they were not hesitant to use their credit cards as Visa and MasterCard earnings show, with better than anticipated profits and higher transactions volume. Both exceeded Wall Street analysts’ estimates. The strong showing by the two top card processors reflect a resurgence in consumer spending of 3.6 percent in the first quarter, the biggest surge since early 2007, based on figures released by the U.S. Commerce Department last week.

Target Visa No More; Retailer Opts for Its Own Card

Starting April 29, Target will no longer issue its Visa Credit Card, opting for store-branded cards for all new qualified applicants. After extensive test-marketing, Target said it has found that customers spend more with store-branded cards and expects increases in retail sales as a result.

Visa Eyes Mobile e-Commerce with CyberSource Buy

With smarter phones and slicker tablet computers the rage, Visa sees greater global potential for mobile e-commerce payments, and that helped drive the top credit and debit card processor to acquire CyberSource. Visa said it will pay $26 a share or about $2 billion to acquire CyberSource, the online payments processor for 25 percent of e-commerce dollars transacted in the United States.

More Global-Minded Facebook to Offer PayPal for Ads, ‘Credits’

Facebook will offer PayPal for buying ads and virtual goods, part of a strategy to make it easier for some international companies to pay on the top social media site. PayPal will also be an option for Facebook Credits, which is being tested in some games and applications. Facebook Credits gives users a convenient way to buy virtual goods from the Facebook Gift Shop.

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