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Payment volume on Visa-branded credit cards declined globally during the first three months of the year, while debit card payment volume in the U.S. continued its rise as more consumers shifted payments from credit to debit cards, Visa announced yesterday. Visa reports its operational performance data one quarter later than its financial results. The card brand's fiscal year ends Sept. 30. U.S. debit sales volume for the three months ended March 31 totaled $202 billion, up 4.7% from $193 billion during the same period last year. U.S. debit transactions totaled 5.4 billion, up 10.2% from 4.9 billion. Some 346 million Visa debit cards were on issue in the U.S. at the end of March, up 16.5% from 297 million a year earlier. Debit volumes include Visa's signature-based and Interlink PIN-debit programs. Visa's U.S. credit card sales volume fell 9.7% during the quarter, to $176 billion from $195 billion a year earlier. U.S. cardholders initiated 2.1 billion credit card transactions, down 4.5% from 2.2 billion. Some 318 million Visa credit cards were on issue in the U.S. at the end of March, down 13.6% from 368 million a year earlier. Outside the U.S., debit card sales volume declined 2.9%, to $34 billion to from $35 billion, while total debit transactions increased by 22.7%, to 996 million from 812 million. Some 579 million debit cards were on issue outside the U.S. at the end of March, up 13.5% from 510 million a year earlier. Credit card sales volume outside the U.S. fell 10.9%, to $204 billion from $229 billion, while total credit transactions rose 10.7% to 3.1 billion from 2.8 billion. Some 480 million credit cards were on issue outside the U.S. at the end of March, up 7.6% from 446 million a year earlier. Total network volume globally (payments volume plus cash volume) was $969 billion, down 5.9% from $1.03 trillion. While the company recently has seen a leveling off of the decline in credit and debit transaction ticket amounts, there are "no signs that a sustained turnaround in the U.S. is occurring," Joseph W. Saunders, Visa chairman and CEO, told analysts yesterday during a conference call. Visa's net income for the fiscal third quarter ended June 30 was $729 million, up 72.7% compared with $422 million during the same period last year, boosted by a $237 million gain on the sale of shares in a Brazilian payments company. Net operating revenue increased 1.9%, to $1.64 billion from $1.61 billion. Adjusted operating expenses fell 8.9%, to $804 million from $883 million.
