Friday, January 10, 2014

Visa Inc.

On January 6th 2014, Visa announced fiscal first quarter 2014 financial results on January 30, 2014. The current price of Visa is 223.70, which is 14% upside. Over the past year the trade between $154.14 and $224.52 and the company pays shareholders $1.60 per share annually in dividends, yielding 0.70%. Visa is still holding their investment thesis as a payment technology company, who engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. However, by Visa is created to make online payment easier instead of the traditional online check out by clicking check out, only put e-mail and the card to use.
Many have probably already heard about the credit card fraud between Nov.27 and Dec. 15 in which credit and debit card data was stolen from 40 million Target’s customers. This has become the second largest scam in U.S history. The major card companies like Visa and MasterCard have already set Oct 2015 as the deadline for U.S retailers to switch over to cards with chips. The massive media coverage of recent Target incident could speed up the process. Visa customers whose identity was stolen have no worries on fraudulent purchases made by culprits. Once they use their stolen information to make purchases, Visa is able to immediately locate their whereabouts through the transaction. All U.S consumer Visa credit and debit accounts are protected by Visa’s zero liability policy, which means customers won’t have to pay any fraudulent purchases. Visa provides a leadership security protection system. Their global fraud rate has come to 5 cents per every $100 transacted. One thing of concern is recently SmartMetric, Inc. is looking forward to the hearing of its lawsuit for patent infringement against both Visa and MasterCard in the Federal Circuit Court of the United States, which is expected to be heard either in April or May of this year.

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