Visa Loses Client to MasterCard - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Visa Loses Client to MasterCard

Visa Loses Client to MasterCard

Visa Loses Client to MasterCard

Columbus, Ohio-based Huntington Bank recently announced a new branding agreement with the payment processing company MasterCard. Huntington will be replacing the debit cards of all their customers, which are currently branded with the Visa logo, with Platinum Debit MasterCards. The changes and upgrades will affect the approximately 1.5 million debit card holders who are customers of Huntington, both consumer and business.

In 2010, Huntington’s debit card customers made some 6.7 billion dollars-worth of purchases, as claimed by the payments industry newsletter Nilson Report.

“This is a big deal for us and a pretty big deal in the universe of card conversions as well,” said Steve Steinour, chief executive of Huntington Bank, to The Wall Street Journal.

The bank new contract between Huntington and MasterCard will likely expire somewhere between 5 to 7 years, although neither company has disclosed the exact terms or financial details of the arrangement. The deal involves only debit cards, Huntington’s credit cards will be unaffected. Issued by a Bank of America unit, their credit cards bear the logos of both MasterCard and Visa.

Visa and MasterCard themselves do not actually lend out any money to consumers, despite the fact that most debit, credit and gift cards bear the logo of either one company or the other. What both companies do is participate in the processing of the payment transaction that occurs between the retailer’s bank and the card-issuing bank each time a consumer uses plastic to make a purchase.

“The more debit cards that have MasterCard’s logo on them, the more payment volume and transactions MasterCard will be processing, and therefore the more revenue and profit MasterCard will be earning,” said analyst Jason Kupferberg, who works with Jefferies Group Inc., according to The Wall Street Journal.

According to Nilson Report, the United States debit purchase volume reported by MasterCard last year in 2010 was $333 billion in 2010, while Visa’s debit purchase volume for the same year was $1.05 trillion.

Visa, which has a great number of exclusive processing relationships with more bank than their competitor MasterCard, uses a debit Network called Interlink. The debit card processing network MasterCard is affiliated with is called Maestro.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Identity Fraud is Up

Posted: February 22, 2018

Last year identity fraud hit a record high, according to the 2018 Identity Fraud Study released by Javelin Strategy & Research. This brings the total number of identity fraud victims in the U.S. to 16.7 million, representing an 8% upswing. ... Continue reading
Traveling More and Taking Shorter Trips in 2018

Posted: February 21, 2018

Heading out for a quick getaway or extended trip to de-stress is trending with travelers, according to Visa's Global Travel Intentions (GTI) Study. They also discovered that taking shorter trips and traveling more often is in the cards for ... Continue reading
Travel and Dinning Out is Trending on Valentine’s Day

Posted: February 15, 2018

If you are planning to take your lover out for a night on the town or on a whirlwind trip for Valentine's Day, you are not alone. According to the new MasterCard Love Index findings, this type of emotion fueled spending is outpacing other ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit