Visa shrugs off consumer downturn - BBC News

Visa have posted a 28% rise in net income for the first three calendar months of 2008 as recognition card minutes increased.

The electronic-payments house said nett income was $314m (£157.6m), up from $246m the twelvemonth before.

But analysts had expected even better, and Visa shares drop 4% after the United States marketplace closed. This proposes they will fall on Tuesday.

These are the first consequences from Visa since it raised $18bn in the greatest United States share sale to day of the calendar month last month.

"Despite a ambitious economical environment, Visa recorded strong growing in payments volume and minutes globally and across our diverse suite of products," said president and main executive director Chief Joseph Saunders.

He said he saw this tendency continuing.

The house have benefited from an increasing electric switch to making payments using plastic rather than cash.

Legal battles

Visa is more than secure from a United States consumer lag than its challengers American Express and Discover Financial Services because its clients are not the cardholders, but the Banks that issue Visa card game and do the loans to its customers.

It confronts larger hazards from possible lawsuits.

Last twelvemonth Visa agreed to pay American Express $2.1bn to settle down a lawsuit in which American Express accused Visa of illegal anti-competitive practices.

It confronts similar allegations from Discovery Financial Services.

The San Francisco-based steadfast set aside $292m to cover future judicial proceeding costs.

This is in improver to the $3bn it put aside from its initial populace offering for possible legal liabilities.

Discover Credit Cards

If you're looking for a way to make your life easier, consider filling out an application for a Discover credit card. Credit cards from Discover are easy to get and easy to use. They offer the same things other credit cards offer, but they are made to fit your lifestyle.

Consider what your lifestyle is before applying for one of many Discover credit cards. Are you someone who loves travel? Check out the new card, Miles, from Discover. This card allows you to redeem your points with no restrictions, so you can travel where and when you want. Perhaps you're a person who needs a little extra motivation to maintain your credit card account? Consider the Discover Motiva card, which credits you with a bonus when you make your monthly payments on time.

Other types of rewards cards are also available from Discover credit cards. Looking for a great cash back card? The Discover More card gives you a 5% cash back bonus! Or perhaps you are a student. The Discover student card fits into your life with the option to manage your account online and cash back on all purchases. And with a liberal credit check policy, you don't have to fear being turned down just because it is your first card.

It isn't easy managing everything in your life regarding personal finance. Between your budget, your investments and all of life's little bumps, sometimes taking on another financial duty can seem like too much work. That's why it's so important to choose the right credit card. When you choose a Discover Credit card, you can be sure it will fit in your life.

Cash only gas station lowers prices

CLEVELAND -- If you want cheaper gas, put away your credit card.

The independent gas station on Puritas Avenue near W. 137th is small and plain. Even the signs posted on every pump are hand lettered and then taped to the glass: "Cash Only, No Credit Cards".This gas stion won't take American Express, MasterCard, Visa, or even a bank debit card. The owner's son says the key to their lower prices is the absence of credit."We're keeping it the lowest price we know right now", said Tariq Hashem. "Every time somebody uses plastic, the credit card company is charging us 25 cents per transaction. And we're only making two pennies per gallon of profit."Customers are willing to trade convenience for lower prices. "If you save some money here it's where I'm at," said Chris Bruno. "I have plenty of credit cards. But I'll pay cash to save a few cents."Regular customers like Anthony Carter put in ten dollars of gas at one time and then come back the next day."This Monte Carlo has a big V8 engine and it drinks gas like water", said Carter.A few miles away, the national brand gas stations all accept credit card payments but also charge higher prices. One was 15 cents per gallon higher.But at "Ohio Gas Station Number 1", cash is king. But so is the lower price.Neighbor Laura Ludwig told Channel 3's Mike O'Mara, "they are great people and their price is always low. They are always lower than anybody else."Owner, Tariq Hashem added, "we're always the cheapest. And a lot of people over here like the way we treat customers.

New AAA Credit Card Offers Cash Back With No Annual Limits on Rewards

LOS ANGELES, CA -- (MARKET WIRE)
-- May 31, 2007 -- The Automobile Club of Southern California is introducing a new credit card that will allow users to earn 1% cash back on all their purchases, with no annual limits on cash rebates and no annual fee.

"Our members have overwhelmingly indicated to us that cash rebates are the preferred type of credit card reward," said Wendy Sabins, senior vice president for marketing products and services. "Cardholders will earn one point for every dollar spent on net retail purchases using the AAA Cash Rewards MasterCard® credit card and will be eligible to redeem their first reward, after collecting 2,500 points."

The AAA Cash Rewards credit card will give cardholders cash back for their everyday purchases including grocery store, restaurant and gasoline purchases; providing members with multiple options to save money as they accumulate points on everything they buy.

Members may obtain applications for the AAA Cash Rewards MasterCard credit card, provided by Bank of America, in all 75 Auto Club offices throughout Southern California, or members can apply by calling (800) 545-7899 and providing the priority code: FABCKT.

The Auto Club will continue to offer its AAA Gas Rebate Visa® credit card, which provides monthly cash rebates of up to 5 percent on all gasoline purchases made at the pump with the credit card. AAA Gas Rebate Visa cardholders have the option to keep their current credit card, request the Cash Rewards credit card and use both cards, or request the Cash Rewards credit card only.

The Automobile Club of Southern California, the largest member of the AAA federation of motor clubs, has been serving Southern California since 1900. Today, the Auto Club's members benefit by roadside assistance, insurance products and services, travel agency, AAA credit cards, automotive pricing and buying programs, automotive testing and analysis, trip planning services and highway and transportation safety programs. Information about these products and services is available on the Auto Club's Web site at .

For information about the rates, fees, other costs, and benefits associated with the use of this credit card, visit AAA.com/CREDITCARD or call 800.545.7899. The Auto Club Credit Card is issued and administered by FIA Card Services, N.A. The 5% rebate for total gasoline purchases paid for at the pump during a billing cycle is capped at 2% of your total retail purchase transactions made during the same billing cycle. Additional terms apply. MasterCard is a federally registered service mark of MasterCard International Inc., and is used by the issuer pursuant to license. Visa is a registered trademark of Visa International Service Association, and is used by the issuer pursuant to license from Visa U.S.A. Inc. Bank of America is a registered trademark of Bank of America Corporation.

Credit Card Fees: Where are the Free-Market People? |

Interesting comments on   We should debate policy, but we should be clear on the numbers:  Every time a consumer makes a purchase on a credit card, the credit card networks skims a fee off the top.  The fee is typically 2%-3% of the purchase price, but sometimes as high as 15%.  The level of fee relates to the merchant's industry and size and, most crucially, the level of rewards.  Merchants pay more when a customer puts down a cashback/frequent flier super-gold high premium card than when another customer puts down a plain-vanilla card.  As several readers explained, this means that if a customer pays for $100 worth of merchandise at Home Depot with a credit card, the store would keep somewhere between $85 and $98, depending on the card the customer used.

According to research published by Adam Levitin, credit card transactions cost merchants, on average, about six times as much as cash transactions and twice as much as check or PIN-debit card transactions.

Because Mastercard and Visa prevent it, the merchant doesn't have the option to charge $10 extra to use a credit card rather than cash, even if the credit card costs the merchant $10 more. 

The numbers cited in Save $6 Billion came from different sources.  The report on the total dollars for these fees ($57 billion) came from .  The numbers for convenience stores and gasoline purchases ($6.6 billion in fees, 65-86 cents per transaction came from ).  I estimated the cash costs based on the  on the relative costs of cash and credit cards. 

We've had some really good posts, but, if I may, I want to re-frame the question just slightly:  Whatever your views of credit cards and consumers, why shouldn't merchants be allowed to pass along higher costs of credit cards--and pass along the savings when customers use cash?  I know how the consumer advocates feel about this, but where are the free market people?  Why aren't those who believe in unrestricted markets jumping up and down over this restraint on trade and demanding that merchants be allowed to determine their own pricing structures?  Isn't this an issue on which two ends of the political spectrum should unite?