With over $1 trillion in transactions the fiscal year 2002, Visa USA has set a new standard for payment card usage. The $1 trillion volume represents over 14 billion transactions in the United States alone—with Visa’s domestic volume equaling nearly twice that of MasterCard, and four times that of American Express. How does Visa achieve such competitive advantage?

A few years ago, Visa sought to differentiate its product offerings to serve new market segments. Long associated with credit cards, Visa now offers debit cards and most recently, payroll or " prepaid Visa cards." Products other than credit cards, now account for more than half of Visa USA’s transaction volume.

The Visa Payroll cards are distributed through Visa’s 22 member banks and the employers they serve. The payroll cards are issued in the workplace and re-loaded every pay-period through a system similar to direct deposit. The payroll cards can then be used to pay electronically for goods and services.

Employers benefit because they save significantly on the payroll costs associated with the issuance of paper checks. Individuals avoid high fees at check cashing locations and the dangers of carrying large amounts of cash. Moreover, the payroll card eliminates two of the key barriers to bringing the unbanked into the banking community: interaction in an intimidating bank branch environment and lack of bilingual customer service personnel. Current Visa USA research shows a high degree of customer satisfaction among payroll card recipients.

Hear more about Visa USA’s innovative products from Kenny Thomas, Director Corporate Relations, in the November 2003 Journalist Audio Conference or contact Mr. Thomas directly at (415) 932-2185.

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