“We expect that fiscal 2012 will bear the weight of the regulations financially, and in fiscal 2013 revenue growth will regain momentum off of 2012’s level,” CEO Joseph Saunders said during a conference call to discuss the forecast.
Because Visa’s fiscal year ends in September it was able to keep its forecast for the current year. Since the Fed moved the date the fee cap will kick in from July 21 to Oct. 1, it will have no impact on Visa’s results for fiscal 2011.
U.S. debit revenue accounts for about 20 percent of the company’s overall revenue, Saunders said during the call.
Specific strategies for implementing Durbin-related changes were not discussed, but announcements are likely this month, and these are sure to be highly anticipated in the industry.
But Saunders declined to spell out how the company will respond, deferring specifics to late July, when it reports fiscal third-quarter financial results, and October, when it reports for the full year.
He did say, however, that “providing some level of incentives to specific merchants may be an effective strategy” to ensure Visa receives profits from their ability to choose processing networks.
Click here for more:http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/07/07/BUFH1K79V4.DTL&feed=rss.business
