Visa Profit Falls on Lower Payments Volume

By Orla McCaffrey

A drop in payments activity pushed Visa Inc. earnings down 23% in the quarter that ended in June.

The largest U.S. card network said payments volume fell 10% from a year earlier. Credit-card payments volume dropped 20%. Debit-card payments volume rose 3%.

The company declined to provide an earnings outlook for the remainder of the fiscal year, citing "significant uncertainty in the global economy" caused by the coronavirus.

Net income fell to $2.4 billion from $3.1 billion. Revenue dropped 17% from the year-earlier period to $4.8 billion, matching analysts' estimates.

Shares closed Tuesday at $196.74 just before the company reported. They fell sharply in after-hours trading.

Last week, Democratic Sen. Richard Durbin asked the Federal Reserve to probe allegedly anticompetitive practices forcing merchants to pay excessive debit-card fees levied by large networks like Visa and Mastercard Inc. The Electronic Payments Coalition, which represents card networks and issuers, said at the time that merchants do have options when they route transactions.

Mastercard Inc. is set to report earnings Thursday.

(END) Dow Jones Newswires

July 28, 2020 16:59 ET (20:59 GMT)

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