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Table of Contents

Lead Story

Marketing: Are you in or out?

News

Industry Update

Could community bank loans help the payments world?

Heartland settling up with Visa

Card sales' decline no longer accelerating

Card brand financials remain positive

Trade Association News

Features

AgenTalkSM:
Anthony Martin

Glossary of common data security terms

Selling Prepaid

Prepaid in brief

From plastic to virtual: Evolution of stored-value

Walter Paulsen
Giiv Inc.

Views

Debit rules and other musings

Patti Murphy
The Takoma Group

Education

Street SmartsSM:
Look ahead, show you care

Jon Perry and Vanessa Lang
Merchant Services Inc., Fort Worth, Texas

POS unplugged

Dale S. Laszig
Castles Technology Co. Ltd.

Claws in merchant contracts

Adam Atlas
Attorney at Law

Managing your fraud risks

Nicholas Cucci
Network Merchants Inc.

Company Profile

IPP of America Inc.

New Products

Tracking the ISO beehive

Merchant Flo
CurveNorth

Getting merchants to pay micro-ly

Payfast
Integrity Payment Systems and
Quicksilver Payment Solutions LLC

Inspiration

Curing merchants' sales colds

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

February 22, 2010  •  Issue 10:02:02

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Card brand financials remain positive

The financial results are in for the card brands: transaction volume and net income continue to increase for Visa Inc., MasterCard Worldwide and American Express Co. Big revenue contributors included cross-border volume growth (MasterCard); currency fluctuations driven by the movement of the euro relative to the dollar (AmEx); and data processing and international transaction revenues (Visa).

Visa reported its net income for the fiscal first quarter 2010 (which ended Dec. 31, 2009) was $763 million, compared with $574 million for the same period in 2009. Revenues from transactions processed through VisaNet totaled $10.9 billion - a 12 percent increase over the first quarter of fiscal year 2009. During that same period, data processing revenues rose to $765 million, up 38 percent, Visa said.

Visa's fiscal first quarter was a "strong start to the new year as we continued to execute well against our business plan," said Joseph Saunders, Chairman and Chief Executive Officer at Visa.

Bottom-line growth

MasterCard's net revenue for the fourth quarter 2009 was $1.3 billion, a 6 percent increase over the fourth quarter of 2008. Worldwide purchase volume also rose to $510 billion, 5.7 percent above the prior year. Net revenue for all four quarters of 2009 was $5.1 billion, 2.1 percent higher than 2008, MasterCard reported.

"In 2009 we took important steps to maintain MasterCard's bottom-line growth and, as a result, delivered another quarter and year of solid financial results," said Robert W. Selander, MasterCard's CEO. "We remained focused on the needs of our customers and continued to add value amid a challenging economic environment."

Selander added that MasterCard improved its expense management and realigned its organization for growth opportunities geographically and in terms of product development.

Spending up

AmEx reported net revenues from the fourth quarter of 2009 were $710 million, up 132 percent from the $306 million generated in 2008. Net income totaled $716 million, up 198 percent from 2008's total of $240 million.

"We ended the year on a positive note with card member spending up 8 percent and credit indicators showing further signs of improvement," said Kenneth I. Chenault, Chairman and CEO at AmEx.

"Fourth quarter results reflected the diversity of our business model that includes issuing cards, building business for merchants, operating a global payments network and delivering high-value services to our customers."

Chenault said AmEx stayed consistently profitable through 2009 and built a more liquid funding base. "At the same time, we will focus on creating a more efficient cost structure and delivering superior service that strengthens our relationships with card members, merchants and business partners," he added.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services