Visa International has been given the “boot” by Citigroup, in favour of MasterCard.
The move will see Citigroup move as many of its 30 million Visa holders to MasterCard immediately.
It seems that the issue at the centre of the breakdown was that Citigroup did not want to have the Visa labeling on the card. MasterCard has agreed to this request, along with a $100 million “holiday” on association fees.
Visa has not been having a very good run lately, with Suncorp-Metway opting to change from Visa to American Express last week. Of course the Suncorp-Metway numbers would be relatively small in comparison to Citigroup, but Visa would surely be hoping nobody else dumps them in the near future, otherwise they could be in for a snowball effect.