BRIEFLY / FINANCIAL SERVICES : Visa May Give Card Issuers More Flexibility

Visa International plans to cede some control over what products and services it offers members in a move that could give those financial organizations greater input into rapid changes taking place in the credit card industry. The San Francisco-based association, which controls the Visa logo put on about 60% of all credit cards issued worldwide, is considering allowing its six subsidiaries around the globe to choose from a menu of debit and credit card systems and services that meet the needs of members in a particular region. Visa International has been under pressure to cut its fees and loosen rules on how members use the logo and offer services as banks and other financial services organizations try to increase profits in the highly competitive credit card industry. Citigroup last year defected to Visa competitor MasterCard, in part because Visa USA refused to allow it to move the logo to the back of the card. If Visa International’s board of directors approve the proposed changes in a meeting Sept. 24, it could be the first in a series of steps to allow members greater flexibility in how they market Visa brand products, said industry analyst Spencer Zahn of Zahn & Associates in Philadelphia.