taperx

On Credit Card Legislation and Consumer Education

Funny thing is when Visa went public, 90% of wall street didn't even understand their business model!! It's now been said a million times over that V/MC dont have a consumer credit risk. Most of the general public still don't understand this entire business model!! How can they possibly understand the fine print.

Obama Versus the Credit Card Companies

The administration and congress may impose their will on the American banks however, what about banks in other countries? There seems to be a whole lot of, the U.S. is the world when talking about V/MC. Before anything comes to roost, I would like to see debit progress and credit card usage trends on the international front! This is where most of the growth will come from for V/MC. If the cash v plastic ration in the U.S. is at 50 %, There is still tons of room to grow without taking in credit worthy or lack there of, consumers. I don't think V or MC have even scratched the surface of cash v plastic on the international front.

Passing on Visa

This is not true!! In no way shape or form is Visa on the hook for any unpaid charges to the merchant!!! This would be decided by the two banks involved!! This is no different than a loan between two banks. If a bank were to fail, like they have, FDIC would then create solvency to protect the customers. Visa still has nothing to do with paying the merchant. V/MC only do processing between the two banks! Sorry but if you are going to blog like this get your facts straight!

Consumer Credit Stocks and MasterCard: Long Term Risks

Your thoughts on store cards trumping visa/mc are insane!! Now you would have to carry 50 or so cards in your pocket!! Generally when a merchant has to many cards to process they then turn to visa/ MC to take over the system which has been the trend. Visa/MC have an infrastructure that almost can't be duplicated. Don't get me wrong, anything CAN be duplicated! First you would have to create the system, finance the system (good luck), build the system and sell the system (ie: make banks want you, and have consumers and merchants get on board with you) Good luck on any of this!! You would then price yourself out of the market in trying to achieve all this. Remember Visa (bankamericad) has been around for decades! It has taken decades to get it where it is as a BANK OWNED OPERATION. Now, finally a public company!

Discover Financial: An Average Company at a Great Price?

A man comes home from work and grabs a banana. Takes a bite out of it and cringes. He asks his wife. "Honey, why did you buy these bananas?" She says, "because they were on sale dear." He replies, "but they taste terrible!!" She replies," but i saved a dollar! The others were more expensive." He asks, " Why spend any money on something that is terrible just because its on sale?" Of course she remains silent. He shakes his head, throws out the rotten bananas and says, "Honey, you didnt save any money you just threw it away. Next time remember quality over quantity. Do you really think a banana is going to get better over time?" I think not!!

Still Substantial Risk in Credit Card Investments

Zach, Not a huge disagreement, like i said in my first post the biggest downside to V/MC is the unknown. Pushing their product in other countries abroad will take time.I just think over the years they know how to do it right.

Still Substantial Risk in Credit Card Investments

Zach, Just because we are in an economic downturn does not mean that V and MC will stop selling their product in the debit card world. The way is see it, the card companies upside is in the actual transition from cash to plastic. Barrowing has now become just one entity of their business. (credit cards) I beleive that the main goal of these companies is to push debit world wide. If you look at the United States alone you will find that people are paying more and more with a debit card instead of writing a check. This is where i think the card companies win. The banks love this service because it is obvious that they are saving money by having the card companies do the block of transactions instead of them. Internationally this theory should catch on. It is truly a business model that is the envy, and, is almost impossible to duplicate

Still Substantial Risk in Credit Card Investments

You don't seem to mention anything about the international scene what so ever. Everytime Visa or MC goes out to another country, who has not established a dominate credit card market and sells their product to them, This not only creates a potential for credit/debit card users but also pulls in the banks in THAT community. Therefore the availability of credit increases world wide. The problem with predicting a complete downside to these companies is very difficult. Visa is also approaching the option of buying out Visa Europe which may or may not happen. The trend from cash to plastic will make any investor do well. The only downside is the unknown. This is an entity that has never been seen before. Theoreticaly nothing will slow down growth until every man woman and child has a debit or credit card in their wallet. I see nothing but upside!

The Plan Has Failed - Cramer's Lightning Round (9/29/08)

Crammer is one of the analysts I would NEVER listen to!! Visa has a goal of using their product in every facet of any possible transaction. (credit or debit) With the age of direct deposit people just dont't go to their banks anymore. Debit cards will begin to flow all over the world and become common place in many developing countries. Visa's upside: the sky is the limit. Remember this even if you dont use credit, but you have a debit card, and you dont't have direct deposit and you deposit your payroll check in the atm at your bank, Visa makes money on that transaction! Everytime a card is used, Visa gets its toll, credit or debit!

Does Visa's Beat Bode Well for MasterCard?

Oops, prognostic, i guess its time to buy, Mastercard took a loss!!

Visa: Why I Sold All of My Shares

Improviz i will never confirm nor deny any affiliation with visa however if you are and employee of visa you should know better than to say visa will NEVER obtain V Europe. Even as an employee you cant know that unless you have extreme insider trading info and i doubt that. I do feel that this blogger bought some stock without understanding the business model of visa. This stock could be great short term and even better long term. With the cost of living who has hundred dollar bills in their pocket any more? Credit is ok but the real key is debit! Most people today have direct deposit and a debit card to function with that costs them zero dollars. This will be the way of the future in even 3rd world countries. This is where the major growth will be.

Visa: Why I Sold All of My Shares

The buy back of visa shares will happen, there will be a 20% gain but internationally not domestic, and visa has no plans to take over visa europe yet, but, will be buying back visa europes visa shares back, is the way i understood the last meetings minutes. As far as a short term investor in visa i would not have worried about the ups and downs during this part of the fiscal year. This summer is like a bonus year for V and MC with the summer olympics coming. Massive amounts of revenue and interchange fees coming that will better the bottom line. Like i stated above i would have waited to sell after the Olympics when VISA is on an every other year bonus season. The holidays is always there for them in the U.S.

Visa: Why I Sold All of My Shares

June 17 V Is at $85.00 and gaining! I would have at least waited until after the summer Olympics!! Helloooo McFly!!