Comprehensive Report: Visa Inc. Class A Shares and Legal Framework

This report provides a comprehensive analysis of Visa Inc. Class A shares, delving into the company's financial services operations, legal framework, and the impact of various agreements on its products and services. The report begins with an executive summary and introduction, followed by a description of Visa Inc. Class A shares and an overview of the legal regulations affecting the company's operations, particularly in Australia. The report examines the legal framework, including anti-money laundering laws, regulations on credit card rates, and the impact of internet transactions and protection regulations. Furthermore, the report explores the agreements that affect Visa Inc.’s products and services, such as bilateral agreements, incentive agreements, judgment sharing agreements, loss sharing agreements, and consolidation agreements. These agreements are analyzed in terms of their impact on the company's revenue, profitability, and competitive landscape. The report concludes by summarizing the key findings and implications of the analysis.

Assessment

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................1
INTRODUCTION...........................................................................................................................1
Q1 Description of Visa Inc- class A shares ................................................................................1
Q2 Legal framework of Visa Inc- class A shares........................................................................1
Q2 Agreements that impact the products and services of Visa Inc- Class A shares...................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

EXECUTIVE SUMMARY
Visa Inc is a multinational company of California which deals in financial services of payment
system and other monetary services. However, the report had highlighted about the Visa Inc
class A shares of the Visa Inc. company and along with it the report had commented on the legal
framework of the Visa Inc company. Eventually the assignment had research about the
agreements that the company had undergone which had impact the products and services of the
company like loss sharing agreements, consolidation agreements, support agreements etc.
INTRODUCTION
Visa Inc class A shares are the stock of Visa Ins company that deals in the monetary services like
branded payment system, debit and credit score card etc. However, the project will outline the
brief history of Visa Inc class A shares and along with that it will highlight the legal framework
of the shares like regulation of net transactions, protection regulations etc. Eventually the report
will frame the agreements of the company that will affect the products and services and their
conventions (Massetti, Angelidis and Murphy-Holahan,2016).
Q1 Description of Visa Inc- class A shares
Visa Inc is an international financial service company headquartered in California, united states
which as operates a merchandising electronic payment system and manages worldwide monetary
services. However, the company additionally offers worldwide transaction through the switch of
value and facts among monetary establishments, traders, clients, business enterprise, and
government authorities. Further, there are around 15000 employees worldwide that operates
within an organization and there are around 5,400 employees that work in the Australian branch
of company (Geisler,2017). Moreover, the company helps in electronic funds movement in all
over the world through Visa-branded credit score cards, gift cards, and debit playing cards.
Further, Visa does no longer provide cards, make bigger credit score or set quotes and fees for
purchasers; rather, visa give financial institutions with Visa-branded payment merchandise that
they then used to provide credit score, debit, prepaid and money access plan to their customers.
Q2 Legal framework of Visa Inc- class A shares
There are various law and regulations that are affecting the working of the Visa Inc - class A
shares operating in an Australia. As an instance, litigation will affect the company's capacity to
compete inside the worldwide defrayal industry like because of the June 2003 agreement of a
U.S. merchant legal proceeding against Visa USA and credit card, merchandiser may pick not to
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simply accept Visa debit cards inside the U.S. even as still accepting Visa-branded credit cards,
and vice versa. Further, leading the final view in our DOJ legal proceeding, members of Visa
U.S.A. might also issue fee cards that compete with Visa-branded cards, such as American
specific or discover, at the same time as last Visa contributors (Bodington, 2016).
However, The payment enterprise is the challenge of increasing worldwide regulatory
focus, which may also bring about luxurious new agreement burdens being imposed on the Visa
Inc Class A shares and their clients and lead to multiplied expenses and reduced income and
sales. Further, there are various payment industry regulations which are identified in the
Australia and affects the operations and revenue of the company.
 Anti-cash laundering law: most legal power in which the company and their customers
perform have enforced, revised or have pending anti-cash laundering regulations, such as
the PATRIOT Act, which calls for the advent and enforcement of encompassing anti-cash
laundering applications.
 U.S. Treasury Workplace Of Foreign Assets Control Standard: Visa USA and Visa
global includes guidelines introduced by using the U.S. Treasury workplace of foreign
belongings, or OFAC. Further, OFAC restricts economic dealings with Cuba, Iran,
Myanmar and Sudan, in addition to economic dealings with sure restricted parties, which
includes recognized money laundering fronts for terrorists or depressant vendor
(Osborne,2017). Further, this law restrict monetary establishments which can be abode in
the ones international locations or are constrained parties from being Visa individuals,
many Visa worldwide individuals are non-U. S. financial association, and thus are not
situation to OFAC regulations. Thus, the company's payment system can be used for
transactions in or involving international locations or parties situation to OFAC-
administered endorsement.
 Regulation Of The Rate Of Credit Score: In the latest years, rules, guidelines or
different legal necessities affecting credit cards were adopted in a number of the legal
power there are cards are being are used. As an instance, Congress and the federal
banking groups have elevated their investigation of the revelation and payment practices
of credit score card issuers. Further, the Federal Reserve Board has projected tremendous
modifications to law Z, below the Federal fact in Lending Act, which, if applied ought to
have an extensive effect the advertising and marketing, revealing and billing practices of
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card issuers. Moreover, Projected or other adjustments to the legal guidelines and or rules
affecting credit score card operations and pricing could boom the charges of card
issuance and reduce the ability of card issuers to charge interest prices and charges on
credit card accounts. One of these detrimental law of the practices of card issuers would
result in a declining of their payments quantity and revenues.
 Regulation of net transactions: According to many legal power wherein the company
and their customers are expected to keep in mind the regulation regarding internet
transactions, and especially with regard to selection of law, the lawfulness of e-commerce
transactions, the assemblage of relevant taxes and copyright and trademark misconduct.
Such rules may also make it less proper or greater costly to finish net transactions by
using the cards (King,2018).
 Protection and soundness regulation: In the latest years, federal banking controller
have followed a chain of regulatory measures meant to require extra blimpish accounting,
greater hazard control and greater capital obligation for financial institution credit score
card activities, which may also make becoming a provider of cards less captivating.
Moreover, Visa U.S.A. and Visa international are litigant in numerous states and federal
regulation affecting their forex conversion activity are or have been misleading, anti-competitive
or in any other case illegal. Further, a trial judge in Australia located that the erstwhile currency
conversion practices of Visa worldwide have been misleading beneath California nation
regulation, and ordered Visa Inc class A shares to require their participants to reveal the foreign
money conversion procedure to cardholders in cardholder statement, programs, entreaty and
month-to-month billing statements. Further, the judge additionally ordered unspecified indemnity
to credit card holders. Further, a number of supposed magnificence moves relating to Visa
Australia former forex conversion practices had been also filed in federal court and the federal
movements have been integrated within the U.S. District courtroom for the Southern District of
new York. The consolidated ailment alleges that the monetary system conversion practices of
Visa Inc class a profaned federal antitrust regulation (Vasquez,2017).
Delaware Law
According to section 145 of Delaware Law permit and authorize a Delaware agency to insure its
administrators, officers, worker and marketers towards liabilities incurred in relation with, and
associated charges as a result of, any claim, motion added towards one of this character as a
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result of his or her bonding with the organization provided that such men and women acted in
precise faith and in a manner such individuals moderately evaluate to be in, and no longer
opposed to, the high-quality interest of the company in reference to the acts or activities on
which such declare, action or suit is based which affect the working of Visa Inc- class A shares.
Q2 Agreements that impact the products and services of Visa Inc- Class A shares
Bilateral agreement: Many competitors of Visa Inc class A shares perform with
extraordinary business structures, have specific cost systems, or take part in special market
segments, thus, these business hypothesis may additionally in the end show more a success or
extra adaptable to regulative, technical, and different traits. Further, in a few cases, those rivals
have the assist of government authorities that restrict or otherwise prevent the company's
potential to compete for proceedings inside nations and areas that impact their products and
services (Chaikin,2018). However, there are number of rivals of Visa Inc company which
includes American express, discover, private-label card networks, virtual currency companies,
technological agencies that permit the alternate of virtual property, and certain exchange
payments structures like WeChat Pay, function as payments systems, with through connections
to each merchandiser and customers.
Moreover, Visa Inc class A shares faces the threat of disintermediation because of
elements consisting of rising technology, which includes cellular payments, change price
credentials, other ledger technology and other payment structure, and with the aid of growing
bilateral agreements between entities that select no longer to apply bills network for initiating
transactions. For instance, traders ought to procedure transactions at once with issuers, or worker
ought to carry out transactions directly with institution and acquirers.
Incentive Agreements: The company into incentive agreements with financial
organization customers, merchandiser and other commercial enterprise companions for various
applications designed to boom revenue by means of developing payments extent, increasing Visa
product recognition, prevailing merchant itinerary transactions over to their community and
impulsive conception. However, these inducements are by and large accounted for as diminution
to running sales; but, if a separate identifiable advantage at fair price can be accepted, they're
accounted for as working expenses. Moreover, the company usually capitalize increase payment
under those agreements. Further, the estimation criteria encompass the existence of financial
advantages to Visa, the existence of legitimate enforceable pattern that control’s ability and
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purpose to put into effect the recoverability structure and the potential to generate future earnings
from the settlement of quantities deferred (Minakov,2019).
Judgment sharing agreement: The Visa Inc class A shares have entered into an
interchange judgment sharing agreement with positive Visa USA that will affect the provision of
its products and services wherein the members that have been called as litigators inside the
interaction multi-district legal proceeding. However, within this judgment sharing settlement,
Visa Inc participants that are signers can pay their club proportion of the amount of a very last
judgment now not allotted to the conduct of credit card.
Loss Sharing Agreements: The company has entered into a loss sharing agreement with
Visa USA., Visa international and certain Visa associates. However, loss sharing settlement
provides for the indemnification of Visa Inc., in sure circumstances, Visa with respect to the
quantity of a final opinion paid by Visa Inc in the U.S. protected litigation after the procedure of
the exchange judgment sharing agreement, plus any quantities reimbursable to the interchange
judgment sharing agreement individual or the indemnity portion of an agreement of a U.S.
blanketed litigation that is sanctioned as required below Visa U.S.A's certificates of
consolidation by using the vote of Visa USA’s special vote casting participants. However, this
agreement affects the sale of products and services of the company and also impacted the various
provisions of products and services (Mashaly and Kuehn,2016).
Consolidation Agreements: Consolidation agreements of the payment industry ought to
bring about the dropping enterprise and may create pressure at the expenses they charge from
their customers which impacts the products and services of the company and also their
provisions which in turn impacts substantially and adversely the income and profitability of the
company. However, consolidation agreement inside the payment industry might additionally
reduce the general range of their clients and will maximize the bargaining power of the potential
clients. This agreement ought to lead economic establishments to find more pricing reductions or
other incentives. Further, consolidation prompt their present customers to search for negotiate
their pricing agreements with them to acquire extra favorable phrases. Further, strain on the fees
they charge from their clients caused by such integration could worldly and adversely have an
effect on their revenues, working results, potentialities for future boom and typical commercial
enterprise.
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Support agreements: The Visa Inc Class A shares has agreements with clients for
various programs planned to construct sales quantity and maximize the acceptance of its fee
products. However, those agreements, with authentic terms ranging from 1 to 13 years, cater card
issuance, advertising and marketing and program aid based on specific overall performance
requirements. Further, those agreements are planned to inspire patron business and to boom
general Visa-branded payment product, thereby lowering unit dealing processing charges and
increasing brand attention for all Visa customers (Xia and Chen, 2015).
Further, payments made and duties incurred under these packages are covered on the
employer’s united balance sheets. The company's duty underneath these consumer agreements
might be liquidate as a decline to sales inside the same duration as the associated revenues are
earned, primarily based on control’s estimate of the consumer’s overall performance as
compared to the position of the inducement agreement. Thus, the agreements may additionally or
might not restrict the quantity of client incentive bills which in turn impact the products and
services and in this way it will affect the provision of products and service of the Visa Inc class
A shares (Chen and et.al., 2017).
CONCLUSION
This project report briefly summarizes about the description of Visa Inc company and Visa Inc
class A shares. Further, the assignment have highlighted about the legal structure of the company
like anti cash laundering law, credit rate law etc. Eventually the report have outlined the
agreements of the company like judgment sharing agreements, incentive agreements etc. that will
impact the products and services of the company.
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REFERENCES
Books and Journals
Massetti, B., Angelidis, J. and Murphy-Holahan, M., 2016. The Quantification of Social Action
in US Corporations. Journal of Leadership, Accountability & Ethics.13(2).
Geisler, K.M., 2017. Fissures in the Valley: Searching for a Remedy for US Tech Workers
Indirectly Displaced by H-1B Visa Outsourcing Firms. Wash. UL Rev.95.p.465.
Bodington, S., Visa USA Inc, 2016. Incentives associated with linked financial accounts. U.S.
Patent Application 15/219,091.
Osborne, W.M.G., 2017. The (Not So) Good Fight: Fee Splitting in the Visa/MasterCard Class
Action: The Merchant Law Group, Justice Perell, and the Ontario Court of
Appeal. CCLR.30. p.190.
King, C., 2018. Anti-Money Laundering: An Overview. In The Palgrave Handbook of Criminal
and Terrorism Financing Law(pp. 15-31). Palgrave Macmillan, Cham.
Vasquez, D.R., 2017. THE GLOBAL ANTI-MONEY LAUNDERING REGIME: AN
ASSESSMENT OF EFFECTIVENESS.
Chaikin, D., 2018. A Critical Analysis of the Effectiveness of Anti-Money Laundering Measures
with Reference to Australia. In The Palgrave Handbook of Criminal and Terrorism
Financing Law (pp. 293-316). Palgrave Macmillan, Cham.
Minakov, V.F., 2019. Operational and Information Risk Management System Based on
Assessment Model of Risk Culture Level. Zofia Wilimowska Leszek Borzemski, p.91.
Mashaly, M. and Kuehn, P.J., 2016, November. Modeling and analysis of virtualized
multi-service cloud data centers with automatic server consolidation and prescribed service level
agreements. In 2016 IEEE 41st Conference on Local Computer Networks Workshops (LCN
Workshops) (pp. 9-16). IEEE.
Xia, M. and Chen, J., 2015. Multi-criteria group decision making based on bilateral
agreements. European Journal of Operational Research.240(3). pp.756-764.
Chen, J and et.al., 2017. Optimal bilateral cooperative slot allocation for two liner carriers
under a co-chartering agreement. The Journal of Navigation.70(5).pp.1170-1182.
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