Bankcard Growth
Visa and MasterCard growth can be reported in a wide variety of ways. For ISOs, the number of locations can be a reflection of ISO "New Business" opportunities, and volume a reflection of potential rebate growth.
In addition, a potentially negative factor can be the growth in fraud, since generally ISOs are responsible for reimbursing the processor for bankcard fraud created by their merchants, under their ISO agreements.
Visa/MasterCard locations have increased by approximately 4,000 over the last five years, or an average of 2.7% per year. Volume on the other hand, has increased due both to inflation and increased consumer utilization, 25% during this period.
Fraud, expressed as the cost per $100.00 of volume, has declined over the past five years. The fraud level in 1995 was approximately 14.6 cents per $100.00 versus 14.5 cents in 1991.
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