Visa, Inc. (NYSE:V) recently reported its third quarter earnings and discussed the following topics in its earnings conference call.
U.S. Credit Franchise
Andrew Jeffrey – SunTrust: Charlie, could speak broadly about Visa’s U.S. consumer credit share and how you feel you are positioned to expand share and continue above trend line growth, especially as some of your competitors potentially are sharpening the pencil a little bit in the U.S.?
Charles W. Scharf – CEO: Listen, I think, we’re blessed with just an outstanding U.S. credit franchise, which has been built up through the years through terrific relationships for sure. We look at the partners that we have, and look at their performance and certainly our performance has been held by their strong performance. That’s true both on the issuer side, as well as on the co-brand side. We’ve also been certainly beneficiaries in the United States credit market, as the affluent customer has recovered more quickly than the non-affluent customers. And as we look forward a more broad-based recovery is something, which should be additive to the affluent business that we have today. Ultimately, our ability to compete as effectively as we have within the United States revolves around all of the things that we’ve been talking about here that we know we need to continue to build out. Those include what we’re doing in the digital space, they include what we’re doing in the mobile space, as well as just the continuing to provide the flexibility that we’ve talked about in terms of our core product set. I know from the prior role that I played, the market has always been a competitive one. There have always been networks out there competing for the same business. The pencils have been sharped for a period of time, and as we think about what we’ve got to do going forward, we certainly expect that to continue.
Local Market Processing
Dan Perlin – RBC Capital Markets: I’m just interested to know how important local market processing through DPS and VPS is to you guys. From a long-term growth perspective, it does represent an important enhancer to the yield as you’ve talked about. You highlighted it at the Analyst Day. It seems to be kind of coming up with some pros and cons in various economies as you kind of outlined in your prepared remarks. So, if you could just speak to that point I’d appreciate it.
Charles W. Scharf – CEO: As we talked about at Investor Day, processing, we think is the second part of the equation that we can provide for our customers. When we process the transaction, when the transaction goes over a network, we are enabled to – that gives us the opportunity to do all the things that we can do both from a risk perspective as well as being able to provide all the analytical information that we can provide back to the issuers in order for them to help grow their business.
Byron H. Pollitt – CFO: I would just add the more we integrate into the processing pipeline, the more we have an opportunity to differentiate our service offering. So, in the case of DPS this creates an opportunity for us to introduce more innovative product services via mobile, as an example, and to add to form factors that expand the activation capability or opportunity for our clients. So, where we can provide processing services like DPS, which have the single largest debit scale potentially outside of China, I suppose, this is an area where we can sell in delivering client service.