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Company: Visa (V)
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  More Exposure to Credit Than Most Realize

Visa is often touted as a great investment because it does not make/hold loans to its card users. This is deceptive, because Visa is reliant on the issuing banks' continuing willingness to underwrite large lines of consumer credit. If issuing banks (i.e. Citigroup, Bank of America, J.P. Morgan) decide to scale down their consumer credit lending, Visa WILL be impacted by lower card user purchasing power and fewer new card accounts.

From http://collegeanalysts.com/2008/05/19/reason-to-be-cautious-on-visa-v-mastercard-ma/

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28%
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7 votes

  One expensive lawsuit behind them, but another still to come

Visa paid more than $2 billion late last year to resolve a suit with American Express Co. (AXP), but a similar case brought by Discover Financial Services LLC (DFS) is set to go to trial in New York on Sept. 9.

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