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Visa suffers setback

June 1, 2012

The leading credit card company in the world recently made headlines after its stock fell due to lower consumer spending.

The leading credit card company in the world recently made headlines after its stock fell due to lower consumer spending.

Bank Credit News reports that shares of Visa dropped after the number of transactions remained flat due to added government regulations. The firm’s chief financial officer Byron Pollitt told a group of investors 

“The most resilient and encouraging part of our business has been the growth of credit, not just in the United States…but globally,” Pollitt said, according to The Wall Street Journal.”There was no way to respond to the new legislation without surrendering market share and with merchants now making the routing decision at the point of sale…it made all the sense in the world to re-adjust our approach to pricing since the retailer is going to be most sensitive…to the price,” Pollitt said.

One of Visa’s main competitors, MasterCard announced improved numbers during a conference of its own. The firm’s CEO Ajay Banga said that usage of cerdit cards had risen in April and May by a total of 17 percent. 

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