How Does VISA Make Money?

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  • čas přidán 1. 08. 2018
  • In this video you will learn exactly how VISA makes money. We will start by busting the myths about how VISA makes money. We will learn how the payment processing system works and what issuing and acquiring banks do. We will then put this together with VISA's 10-Q to fully understand where VISA's revenue comes from.
  • Věda a technologie

Komentáře • 42

  • @dahubs4325
    @dahubs4325 Před 2 lety +5

    very well explained - thanks. also like how you give zero f's on the slide layout

  • @hus390
    @hus390 Před 4 lety +15

    For those wondering "what's in it for the merchant getting $2 less?" Well, the the dollar volume of the merchant is getting increases rapidly. The customer is paying on credit he took from a bank. So the credit risk is eliminated for the merchant. While in the past, the merchant would occasionally let cusomers buy after he tries to asses their credit worthiness, he held the risk of them not paying or not being able to pay. Also the cards made more customers available by elevating the need and fear of carrying cash everywhere.

    • @martymcfly5423
      @martymcfly5423 Před 4 lety +2

      What?? The Credit risk by taking Cash/Debit is exactely 0 for the merchant.

    • @kamu747
      @kamu747 Před 3 lety

      @@martymcfly5423 my thoughts exactly.
      The previous comment explanation makes sense in a society that operates mainly on credit.
      Why should the merchant accept this? I'm starting to think that the merchant has added this cost to the bill and isn't, in actuality losing anything. It's all been factored in. If the merchant is wise enought to factor this into their bills. Smokes and mirrors.
      When you think about it, it's the person making the initial payment who is paying the entirety of these divided fees to the acquiring bank and issuing bank and ultimately VISA whenever they are making payments to a merchant.
      So many steps. Just to eliminate cash and further milk the buyer.

    • @omarmalik5099
      @omarmalik5099 Před 2 lety

      @@martymcfly5423 But consumers want to use credit and pay off their credit card so they pay no interest so they can get all the benefits of a credit card - points, cashback, payment protections, etc. Credit cards are simply better than debit cards so Merchants have to make sure they can accept credit card payments

  • @bigfacts4235
    @bigfacts4235 Před 5 lety +8

    Great Video! simplified and Concise we need more like this.

  • @asheeshswamy3939
    @asheeshswamy3939 Před 2 lety

    Brilliantly explained. The key is simple and easy methods to explain the not so complicated concepts.

  • @Tunnyemah
    @Tunnyemah Před rokem

    Super thanks!!! Now it’s totally clear!

  • @seandunlop7054
    @seandunlop7054 Před 4 lety +1

    This is excellent, thanks.

  • @theckp
    @theckp Před 4 lety +1

    Very helpful thank you!

  • @millie111001
    @millie111001 Před 11 měsíci

    Thank you for making this video, it's very helpful.

  • @monsterboomer8051
    @monsterboomer8051 Před 3 lety

    Thanks, you are true genius.

  • @stephenstringer6547
    @stephenstringer6547 Před 4 měsíci

    Easy to understand. Thank you!

  • @Sil3ntNinja01
    @Sil3ntNinja01 Před 4 lety

    Thank you for the helpful video

  • @farfrombangladesh2744
    @farfrombangladesh2744 Před 4 lety +1

    great explanation

  • @amethyst4444
    @amethyst4444 Před 4 lety

    great video!!! thanks!

  • @Erez.Levi.Stocks
    @Erez.Levi.Stocks Před 2 lety

    amazing video, thanks.

  • @santi9611
    @santi9611 Před 4 lety

    Good explanation, but you should do the explanation with a example in the banks for a easier understanding

  • @kshytyj
    @kshytyj Před 2 lety

    Great!

  • @setalaka
    @setalaka Před 2 lety

    Awesome video! Who pays for the data processing fee? :)

  • @avimehenwal
    @avimehenwal Před 3 lety

    Hey awesome people! I want to learn more about online payment systems, are they any good books on the topic? I am interested in design principles and implementation details.
    Thankyou and have a nice day

  • @lonzhao
    @lonzhao Před 5 lety +4

    Well I much prefer Mastercard/Visa over cash.

  • @TeeMilli
    @TeeMilli Před 4 měsíci

    Crypto Blockchain = Public Ledger
    Visa, MC, AMX, Discover = Private Ledger
    Debit/Credit Card = Token runs on a Private Ledger

  • @news2383
    @news2383 Před 3 lety

    probably should have looked this up before investing in them

  • @madroxplays9697
    @madroxplays9697 Před 4 lety

    Jai

  • @intelboydj1
    @intelboydj1 Před 3 lety

    thanks bro, can I help you?

  • @Patrick-ud3vu
    @Patrick-ud3vu Před 3 lety +2

    Yeah... Bitcoin cuts out that whole process.

    • @WeAllWeGot333
      @WeAllWeGot333 Před 2 lety

      But I’ll never use bitcoin it’s worthless

    • @Patrick-ud3vu
      @Patrick-ud3vu Před 2 lety +1

      @@WeAllWeGot333 yeah … Blockchain is useless just like the Internet.

    • @WeAllWeGot333
      @WeAllWeGot333 Před 2 lety

      Patrick y’all believe in anything bitcoin will never take over it just will never happen it’s a phantom dream

    • @Patrick-ud3vu
      @Patrick-ud3vu Před 2 lety

      czcams.com/play/PLDdHNjoAmwWjcckuEYeczDySu_3L8-MmG.html