Visa Inc. — The Business Of Money
Investing is about finding the best places to maximize your money.
And Visa Inc. ($V) certainly seems like an ideal candidate.
This company is a compounding monster — consistently beating the market and outpacing inflation year-over-year.
Today’s article examines what Visa does. And if its a good investment.
What Does Visa Inc. Do?
Investing in Visa is like owning a toll road for all cashless transactions.
Visa operates the VisaNet processing network. Almost every credit card and debit card operates on either VisaNet or the Mastercard network — a duopoly on electronic payments.
Unlike American Express, Visa is not a card issuer and it does not extend lines of credit.
Instead, Visa operates a payment network that it allows banks and card companies to transact with. And if you pay for something with a card operating on the Visa network, Visa gets a percentage of the transaction.
As an example, the Chase Freedom Unlimited card uses VisaNet.
Chase Bank handles the lending risks, while Visa maintains the payment network. And Visa collects a “swipe fee” of 0.14% per transaction.
