News

Visa remains optimistic about PIN-debit after Durbin Amendment final rule

July 6, 2011

According to Digital Transactions, Visa Inc. is preparing to lose some PIN-debit transaction volume in the wake of the Fed's final rule on the Durbin Amendment last week, but in a conference call with analysts, remained optimistic about the future.

“I still believe that we’re in a better position to compete in this environment than anyone else,” said Joseph W. Saunders, executive chairman and chief executive, on Wednesday afternoon during the conference call with analysts.

The law bans exclusive network affiliations on debit cards and also prohibits issuers and networks from interfering with merchants’ routing preferences. The Fed’s new rules require that most debit cards offer at least two unaffiliated networks by next April.

According to Saunders, U.S. debit is a $1.6 billion business for Visa and makes up about 20 percent of Visa’s global net revenues.

"We will compete vigorously to maintain the Visa routing preference and have several strategies we will put into action to achieve this outcome,” Saunders said. “Providing some level of incentives to specific merchants may be an effective strategy to ensure Visa receives routing preference.”