Visa 2011 Annual Report Download - page 30

Table of Contents
Some existing clients have been placed in receivership or under government administration. Many financial institutions are facing increased regulatory
and governmental influence, including potential changes in laws and regulations. Many of our clients, merchants that accept our brands and cardholders who
use our brands have been directly and adversely affected.
Our financial results may be negatively affected by actions taken by individual financial institutions or by governmental or regulatory bodies in
response to the economic crisis. The severity of the economic environment may accelerate the timing of or increase the impact of risks to our financial
performance that have historically been present. As a result, our revenue growth has been and may continue to be negatively affected, or we may be affected,
in several ways, including but not limited to the following:
• Depressed consumer and business confidence may decrease cardholder spending.
• Uncertainty and volatility in the performance of our clients' businesses may reduce the accuracy of our estimates of our revenues, rebates,
incentives and realization of prepaid assets.
• Our clients may implement cost-reduction initiatives that reduce or eliminate payment card marketing or increase requests for greater incentives
or additional expense reductions, which may reduce our revenues.
• Our clients may decrease spending for optional or enhanced services, affecting our revenue and reducing cardholders' desire to use these
products.
• Our clients may increase cardholder fees as a cost-recovery initiative, or as a result of regulatory action, which could decrease our value
proposition to consumers, thereby reducing consumers' desire to use our products.
• Government intervention or investments in our clients may negatively affect our business with those institutions or otherwise alter their strategic
direction away from our products.
• Tightening of credit availability could affect the ability of participating financial institutions to lend to us under the terms of our credit facility.
• The trading markets for U.S. government securities may be adversely affected by changes in investor sentiment. This could arise from a number
of market forces, including, among others, the U.S. government's inability to meet its obligations or a possible further downgrade in its debt
rating. This in turn could adversely affect the liquidity of our investments, a substantial portion of which are U.S. treasury and government
securities.
• Our clients may default on their settlement obligations, including for reasons unrelated to payment card activity, such as mortgage matters.
• Adverse fluctuations in foreign currency exchange rates could negatively affect the dollar value of our revenues and payments in foreign
currencies.
Finally, the stock markets have recently demonstrated extreme volatility. Additional declines in stock prices or significant instability could cause
consumer spending to decline materially.
Any of these developments could have a material adverse impact on our prospects, growth, revenue, profitability and overall business.
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