Visa announced its quarterly earnings on Wednesday, besting many analysts’ expectations with a 26 percent improvement from the previous year.
The company reported that data processing revenues jumped 17 percent, too. Additionally, total processed transactions saw a 4 percent bump.
“Visa again delivered a strong quarter of revenue and earnings driven by success across our global franchise,” Chief Executive Officer Charlie Scharf said in a press statement.
According to an article for PaymentsSource, Visa’s profits were fueled in large part due to a combination of increased revenues from transactions and a catch-up tax benefit.
When credit card companies like Visa enjoy such significant growth, it means more consumers are using their cards for purchases. While more transactions can be a great thing for merchants in theory, the size of those purchases has to be worth it for them to incur the credit card processing fees that come with them. That’s why many businesses set minimum purchase amounts for transactions where cards are the primary form of payment.
This can get particularly dicey for small companies if the big wigs like Visa and MasterCard or the processing companies hike up their fees. So, how can merchants see growth in their businesses without paying through the nose in every fee imaginable?
By using credit card POS software that comes with regular technical and maintenance support without blindsiding you with additional, hidden and recurring charges, business owners can know exactly what their margins are on each transaction and what it means for their bottom line.
With the right software solutions, it doesn’t just have to be the credit card companies enjoying bumps in their numbers.