Business Model de Visa

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Large merchants in the United States accepting a credit card are charged a 2% discount off the sale price, with the 1.6% going to the bank that issued the card and the rest divided between the merchant's bank and the network. Visa receives around 0.2% of the transaction, with minimal variable costs due to the small amount of data involved. Debit transactions have lower fees due to lower risk and are often higher for smaller merchants. The flexibility of interchange allows for varying costs based on the type of transaction and merchant.

To paraphrase Visa founder Dee Hock, how many of you know Visa? Great, all of you. Now, how many of you know how it started? Or, for that matter, who started it? Who runs and governs it? Where is it headquartered? What’s its business model?

For the 11th largest market cap company in the world, Visa’s history and strategy is almost shockingly unknown. A huge portion of the world’s population uses their products on a daily basis (you might say Visa is… everywhere people want to be), but very few know the amazing story behind how that came to be. Or why Visa continues to be one of the most incredible and incredibly durable business franchises of all-time. (50%+ net income margins!! On $30B of revenue!) Today we do our part to change that. Tune in for one heck of a journey.

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‍Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.