* First-qtr earning $2.20/shr vs est $2.16/shr
* Total operating revenue up 11 pct to $3.16 bln
* Shares up 2 pct
By Tanya Agrawal
Jan 30 Visa Inc's chief executive urged
U.S. merchants and banks to hasten the adoption of a more secure
technology for credit and debit cards after security breaches at
Banks and retailers have been dragging their feet over the
upgrade and have been at odds over who should bear the cost,
which experts have said could be as much as $10 billion.
Visa and MasterCard Inc have been pushing for
merchants and issuers to meet an October 2015 target date to
accept cards with an embedded chip to hold information, rather
than rely on the easily copied magnetic strips.
Analysts have estimated that only 60 percent of U.S.
point-of-sale terminals would meet the target date.
"Unfortunately many merchants and issuers and both of their
lobbyists are attempting to assign blame in the press and not
reacting in a particularly constructive manner," Charlie Scharf
said in a post-earnings conference call.
"It is in all of our best interest that change quickly."
Last month Target Corp, the third-largest U.S.
retailer, said about 40 million credit card records and 70
million other records containing data on its customers were
stolen in a security breach.
Luxury retail chain Neiman Marcus and Michaels
Cos Inc, the biggest U.S. arts and crafts retailer, have said
they were victims of cyber attacks.
Most Americans have been victims of data theft, but that
hasn't stopped them from using credit cards and social media
sites or shopping online, according to a Ipsos/Reuters poll of
About 64 percent of the victims said the experience had not
deterred them from using their credit or debit cards.
Visa, the world's largest credit and debit card company,
reported a better-than-expected rise in quarterly profit as more
people used cards instead of cash to make payments.
Net income attributable to Visa rose 9 percent to $1.41
billion, or $2.20 per Class A share, in the first quarter from
$1.29 billion, or $1.93, a year earlier.
Total operating revenue increased 11 percent to $3.16
billion in the quarter ended Dec. 31.
Analysts on average had expected earnings of $2.16 per share
on revenue of $3.13 billion, according to Thomson Reuters
Foster City, California-based Visa said total volume grew
about 7 percent to $1.84 trillion, helped by a strong holiday
shopping in the United States.
Visa shares were up 2 percent at $221.80 in morning trading
on Thursday on the New York Stock Exchange. MasterCard shares
were also up 2 percent at $79.19.
Shares of Visa, a component of the Dow Jones industrial
average, have gained about 44 percent last year,
outperforming the 27 percent rise in the broader Dow Jones