Yesterday Visa Inc. (NYSE: V) filed a report with the US Securities and Exchange Commission indicating that the company’s total US payments volume fell by -3% and that US debit card payment volume fell by -12% in April compared with April 2011. Through May 28th, total payments were flat and debit card payments fell another -8%. Total transactions were down -1% in April and up 1% in May compared with the same periods a year ago.
Today, Mastercard Inc. (NYSE: MA) told an investor conference today that US payment volumes were up 9.5% in the period from April 1st through May 28th, and non-US volumes were up 15.5%. Mastercard did not break out debit card volumes.
The limit on debit card transactions fees set by the US Congress last year is affecting debit card transaction volume at the card issuers.
Mastercard also noted in its presentation that if Greece should undertake a disorderly exit from the euro that some of its European cards would not work. For example, the company would not accept a card issued in Greece for a transaction in, say, Germany because there would be no way to mitigate exchange rate risk or figure out a drachma-euro exchange rate.
Shares of both Visa and Mastercard are down about -1.7% today, probably because whatever affects one will also affect the other.
Paul Ausick
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
