Case Type: improve profitability; industry analysis.
Consulting Firm: Capital One final round job interview.
Industry Coverage: financial services.
Case Interview Question #00406: Visa Inc. (NYSE: V) is a multinational financial services corporation headquartered in San Francisco, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards and debit cards. In 2008, according to The Nilson Report, Visa held 
a 38.3% market share of the credit card market and 60.7% of the debit card market in the United States. In 2009, Visa’s global network (known as VisaNet) processed 62 billion transactions with a total volume of USD $4.4 trillion.
Question #1: Suppose that you are a consultant hired by Visa to help them develop strategic plan to increase the profitability of their credit card business on an individual account basis. How would you go about it?
Possible Answer:
Profit structure for a credit card company on an individual customer basis comes from two parts:
I don’t understand either, why the graph is not a straight line, but a curve instead. I thought the profitability of the group of clients should grow linearly with individual account profitability.
Can someone explain the chart, how it is to be read. Why is Type C a curve and How does profitability of Type C increases?
Actually Visa is a financial service company doing electronic payment processing, not a credit card company! Visa does not issue cards, extend credit or set rates and fees for consumers; rather, Visa provides other financial institutions like CitiBank, Chase, Bank of America with Visa-branded payment products that they then use to offer credit, debit, prepaid and cash-access programs to their customers.
Nevertheless, this is an excellent case!
I agree, my first thought on revenue was a charge per transaction and maybe an upfont cost to Citi, Chase etc.
This case is more for an actual credit card issuer, very qualitative answer though (specifically the last question).