People Still Don't Understand Visa

ABOUT JOHN COOGAN:

I've been an entrepreneur for the last decade across multiple companies. I've done a lot of work in Silicon Valley, so that's mostly what I talk about. I've raised over 10 rounds of venture capital totaling over $100m in funding.

I work mostly in tech-enabled consumer packaged goods, meaning I use software to make the best products possible

CONTACT:

Disclaimer: This video is purely my opinion and should not be regarded as a primary source. I am not a financial advisor and this is not a recommendation to buy or sell securities. Always do your own due diligence.

[glennalexon]

It's not "a trick" or "a paradox" that people use a Visa card and don't know about the company's origin. The same is true of almost all common objects.

[LeScribe]

VISA makes around 54 Million USD in net profit per day

[breadman]

And now it's become so entrenched in the system that the entire retail economy gives these companies 3% of every sale. Even when there's other payment methods that don't require a fee. Edit: I'm not talking about cash. I 'm talking about other online payment options that don't require fees.

[howardroark]

I worked for a credit card processor business for years and years. This video is very good at explaining the process and industry. Almost no one outside of the intdustry even knows it exists, let alone who accepts the risk, who gets the money, etc.

[Master_Shredtacular]

An interesting footnote at the most modern of credit card history: most credit card issuers track where you shop, what you buy, and your general spending habits. That information is aggregated, and then sold to health insurance companies, among other corporate entities. My Amex has a section on this in the ToS. This practice is illegal in nearly all of the developed world. But not in the US.

[arthurn]

In fairness, we dont know how most companies that make the products we use were started or how they even operate beyond the service they provide

[mjordan]

In late '83 I retired from the US Air Force (communications tech) and went to work for Visa.
I retired from Visa in early '09 after 25.5 years. It was one hell of a ride just keeping up with almost exponential growth.
My one regret is that I never got to meet Dee.

[erintyres]

For a long time, my parents saw credit cards as something similar to hard addictive drugs. Their concern was that you could easily get into trouble with uncontrolled debt and interest.

[sodiebergh]

DUDE. You are a dynamo. I listened to this via bluetooth in my car TO and FROM a furniture store, where I was to buy a new sofa. The very fact I could purchase it in mere seconds was not lost on me during the transaction. I even told the salesperson how hard that would have been back in the day (he wasn't as impressed as I was.) Thank you for spelling all of this out, I'm going to listen a couple of more times. Bravo!

[RussellD]

Basically a RISK free middleman Cash cow is what it is LOL

[bikepacker]

I was pretty impressed with your knowledge up to the point where you said more than 700 countries now support real-time clearance of funds.

[SaltyAntelope]

I've worked for Visa for five years. You've given a better history than anyone I've ever heard.

[glitchy_weasel]

Dude, what a fantastic video!
Didn't think I would watch all 40 minutes of it, but a couple of minutes in I was engaged. I like your presentation style; again, great job!

[bikepacker]

I live in Southeast Asia and they have dumped Visa and MasterCard. Everyone here uses a QR code based payment system that is somehow connected to Chinese Banks. Even the smallest street vendor uses this system.

[rahul]

38:15 700 countries?! Does this include those on Mars, Titan, and Ganymede?

[dontown-lbke]

I worked at a VISA Centre here in Canada for 30 yrs starting in 1974. Back then in Canada it was known as CHARGEX. I actually spent 20 yrs handling 1.5 million authorization calls from merchants. Thanks for history.

[kiddster]

I remember when "VISA" was called "Chargex" before they had magnetic strips - I'm thinking early 70's. They ran TV ads that showed the card and preprinted 3-copy carbon paper receipts going into the manual imprint machine, along with some catchy jingle. The idea was that the merchant would drag a wand across the carbon paper sitting on top of the consumer's card, which would leave an imprint of the card on each paper copy. The merchant would get a copy, the consumer would get a copy, and presumably the merchant would remit the 3rd copy to the merchant's VISA agent to be reimbursed.

[housecat]

The words: "just a little, don't worry", are anathema to people actually trying to learn more.
Don't worry, John. Don't patronize your audience. We're here for the content, and we love it.

[MsJamiewoods]

There was one successful new competitor to Visa and Mastercard -- Discover launched in 1986. Originally, the Discover card was owned by Sears. Actually, it was something like Greenwood Trust and Bank, which Sears owned. Sears offered pre-approved cards to all Sears credit card holders in good standing. I still remember getting my Discover card summer 1986. It was the first non--store credit card I had. Sears first began accepting Visa and Mastercard in 1993.

[gphilipc]

A little Freakonomics: I remember working in my Sister and Bro In Law's Hardware Store in the 1960's. She had an old school mail & receipt spike full of NSF checks from local customers. A good number of the NSF customers were renters who were about to move so they figured they were going to beat the debt and be unfindable, others were small local contractors who got overextended. Then the Credit Cards started making big inroads to the system here in SE Looziana. The 1960's were truly Watershed years in how ordinary folks handle their finances. It worked for a good number of folk but likely Bankrupted many more.