CLEARWATER, Fla. – Card Services For CUs, a cards processor for 3,300 credit unions, yesterday said it has received $28.9 million from the initial public offering of Visa and will be paying it out to its credit union members on a prorated basis.
The CUSO, which processes cards for Visa and MasterCard, will be paying 2,600 credit unions a share of the proceeds, an average of $11,100. Card Services said the special, mid-year Visa IPO patronage dividend will be paid as soon as practical, in the August-September 2008 time frame, rather than waiting to include the payment in the regular 2009 patronage dividend distribution.
CSCU is the second credit union processor to pay out its share of the Visa IPO. Earlier this month, PSCU Financial Services paid $20.5 million it received from the offering. More than 200 credit unions that are connected directly to the Visa network received payments from Visa, some of them in the millions of dollars, in March.
CSCU’s interest in Visa was based on fees paid on transactions from the 1975 inception of Visa through December 2005. So CSCU will base its distributions on volume from the inception of CSCU in 1989 through December 2005.
