Contrary to popular belief, this credit card company does not produce any actual credit cards…shocking, isn’t it?
So how can a company with no physical product become a $10 billion a year mega business, with a presence all over the globe, and is it worth your time, money and effort to invest in Visa binary options?
In a single word: yes.
In two words: absolutely yes.
The fact that it does not act as a card issuer actually works to visa’s advantage in a way.
The idea of the first credit cards originated from 1950’s America where families often relied on more than one revolving credit accounts, forcing a multitude of bills and payment solutions, Bank of America sought a solution to this, an evolvement of the already in existence charge card, they came up with the BankAmericard, initially distributed freely to roughly 250,000 people in Fresno California meant as a test group of sorts, the card proved to be a great success and the bank quickly expanded its use to San Francisco, Sacramento and Los Angeles, by 1959, the California market had over 2 million credit cards in use.
This advancement in banking also had the slightly less desirable outcome of creating an entirely new kind of crime – credit card fraud, within a few years, over 22% of credit card wielding accounts were in some form of default or delinquency, far above the expected 4%, the situation forced Bank of America to apologize to consumers and lawmakers, the entire ordeal ended up costing the bank over 8 million dollars.
The system was salvaged with further restrictions and limitations in place and other banks started taking interest in it and Bank of America began issuing licenses to use its system, by the early 70’s the system had not only made its way to most US states but a few countries such as Canada, France and the UK, around that time Bank of America gave control of the program to issuing banks and those decided to create a single business entity that would control all the data, promotion and development of credit cards, thus came about NBI (National BankAmericard Inc.) and later IBANCO (for the international banks).
Visa as we know it today was finally established in 1976, when it was decided that it would be in the best interest of all issuing banks to have a single recognizable entity, NBI became Visa USA and IBANCO Visa International.
The next major advance in Visa’s business did not come until 2006 when it announced that some of its subsidiaries would be merging and that the company would begin to be publicly traded, that move took place in 2008 and the IPO brought in nearly 18 Billion USD to the newly formed Visa Inc.’s pockets.
Visa is now accepted in practically every corner of the earth, and with an operation of that size and profitability, you might be asking yourself if Visa binary options are a solid investment.
As we said early on, the general sentiment is very positive, however, there are a few key factors you should consider before making that decision: just as you would do with any other company, you should always be on the lookout for profitability reports, mergers, purchases and anything that may impact the company’s own structure and finances, but with Visa there are also vast economic implications that possibly stretch all over the globe.
Visa’s situation is such that while it may not be the issuer of actual cards, and there for is not at risk when a person or persons incur credit card debt, it still suffers greatly when that overall debt climbs, simply put, the more people are in debt, the less they buy, the less they buy, the less they use their Visa card, costing Visa its commission on both ends of the deal (consumer as well as seller).
So when trading Visa binary options you should always be on the lookout for global credit card debt figures, as well as any national, regional and global economic crises that may impact Visa’s prices.
Invest smartly in Visa binary options and you could soon wave goodbye to that credit card debt which was weighing on you, but also hurting visa’s business, and you wouldn’t want that, would you?