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Visa Inc. V recently unveiled its Scam Disruption (VSD) practice, poised at preventing complex online scams. This department is under the Visa Payment Ecosystem Risk and Control (PERC) and has prevented more than $350 million in fraud attempts in 2024 alone. This initiative strengthens Visa's commitment to protecting consumers and financial institutions while bolstering its market leadership.
This move bodes well for Visa, enhancing its ability to detect, investigate and neutralize fraudulent activities. Utilizing cutting-edge Artificial Intelligence and human expertise, the company is proactively shutting down sophisticated scam networks. The advanced fraud prevention capabilities will likely translate into increased trust among consumers, merchants and financial institutions, leading to stronger client retention and acquisition.
This initiative is expected to support Visa’s bottom line by reducing chargeback losses and fraud-related operational costs. By leveraging proprietary technologies, the company not only mitigates immediate scam threats but also establishes a long-term security framework that could attract more institutional partners looking for robust fraud prevention measures.
Ultimately, Visa's investment in scam disruption solidifies its reputation as a trusted payment network. In the near term, this could drive higher transaction volumes, increased revenues from fraud prevention services and an enhanced competitive edge in the global financial ecosystem. This initiative ensures that Visa remains at the forefront of securing digital payments, fostering growth and customer confidence.
Furthermore, Visa's collaboration with law enforcement and industry partners amplifies its credibility as a leader in payment security. The dismantling of nearly 12,000 fraudulent merchants through this initiative showcases the effectiveness of its intelligence-led approach.
Visa's Price Performance
Shares of Visa have gained 16.5% in the past year compared with the industry’s 13.1% growth.
Image Source: Zacks Investment Research
V’s Zacks Rank & Key Picks
Visa currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Business Services space are Sezzle Inc. SEZL, PayPal Holdings, Inc. PYPL and Remitly Global, Inc. RELY. Sezzle currently sports a Zacks Rank #1 (Strong Buy), and PayPal Holdings and Remitly Global carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Sezzle outpaced estimates in each of the last four quarters, the average surprise being 142.4%. The Zacks Consensus Estimate for SEZL’s 2025 earnings indicates an improvement of 19.9% from the year-ago figure. The same for revenues implies growth of 30.4% from the prior-year tally. The consensus mark for SEZL’s 2025 earnings has moved 5.2% north in the past 30 days.