Visa’s fiscal third quarter results revealed a material impact to its Internlink PIN-debit volume, which was discussed during their earnings call last week. Its top executive’s comments regarding the lasting impact of the legislation on their network underscore the importance Visa is placing on next generation products, expanded account services, and international expansion.
“There will be a permanent deterioration in our debit card volume as a result of the Durbin legislation, there’s absolutely no question about it,” Visa chairman and chief executive Joseph W. Saunders said. “So when we talk about waiting and seeing, we’re kind of waiting to see where it gets to, but I don’t expect to be close to where we were when the whole thing started.”
This volume shift from Visa to other networks also opens a period of heightened competition as new relationships are formed that increase sales opportunities now and in the future. In a testament to the resiliency of this industry giant, it also reported a greater than 10% increase in adjusted net income from a year ago, minus the cost of the recent interchange fee lawsuit settlement.
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