Visa

Many swing trading customers use Visa debit or credit cards to transfer money between their bank account and broker. But is it the best option? In this article, we aim to answer traders’ queries about Visa, from their security methods and login process to withdrawal times and support for crypto deposits like Bitcoin.

How Visa Works

Visa Inc. is one of the leading global debit and credit card networks, boasting a 50% market share of all card payments worldwide (excluding China). The company itself does not issue cards directly to consumers. Instead, it licenses its services to banks, building societies and credit unions. All Visa-supplied cards feature the well-known blue and yellow logo below.

The firm processes upwards of 100 billion transactions every year in over 200 countries through its four ultra-secure data centres. The company also has offices all over the globe, including London. Their headquarters are located in the San Francisco Bay Area.

Thanks to the enormous popularity of its services, Visa is one of the most valuable businesses in the world, with a net worth (stock market cap) of around $460 billion USD (as of January 2022) and a share price exceeding $220. Mastercard, the brand’s major competitor, is vastly outstripped by Visa in terms of revenue and popularity.

The firm’s payment services remain popular with traders thanks to their versatility and affordability. The majority of major brokers offer Visa deposits and withdrawals, including Pepperstone, IC Markets, and Plus500.

Alternative solutions for swing traders include e-Wallets such as PayPal, Skrill, and Neteller, as well as direct payment methods like Trustly or Klarna Pay Now.

Cards

There are several varieties of cards, including Visa Debit and Electron (targeted mostly at youth customers). Credit cards range from Visa Classic to Infinity, a ‘black card’-style service for ultra-high net worth individuals. Prepaid cards, known as Visa Gift Cards, are also offered, though these may incur bank transfer fees.

Transaction Times

Visa transactions are processed quickly. This can be advantageous for traders, who often need to be able to make reliable payments at short notice. In many cases, traders can deposit money into their broker account instantly versus traditional methods, such as wire transfers, which can take up to five days.

Due to brokers’ internal verification processes, withdrawing money using Visa can take a little longer. With that said, most reputable trading platforms process card withdrawals within one or two working days, making it one of the fastest payment options.

Pricing Review

Broker deposits and withdrawals made with Visa are generally free. Traditional banks do not charge customers for card payments. However, some brands and merchants have their own transaction charges, making it important to read the terms and conditions before opening a live account. In particular, swing trading platforms may take a commission on withdrawals, though this is becoming increasingly unusual.

Tip: Check out online reviews of brokers to avoid paying transaction charges.

Security

Visa transfers are generally a safe way to fund your swing trading account – after all, if their system could be easily hacked, much of the world would be in trouble. The 3D Secure protocol also provides an additional layer of security for online payments, helping to protect against fraud. When making a payment, look out for the ‘Visa Secure’ badge, which confirms that it is safe to proceed.

Importantly, the company does not share any of your personal information with brokers, while its Zero Liability policy guarantees that you will not be held responsible for any payments made without the proper authorisation.

Customer Support

The customer support team are available 24/7, and can be contacted on their phone helpline, email, or by live chat:

• Contact Number: 020 7795 5777
• Email: Feedback form available on the ‘Contact Us’ page

If your deposit fails or you encounter withdrawal issues, you can also contact your broker’s customer support team. Note, if the 3D secure authentication has failed or the service is down, your broker’s customer support team may not be able to help.

Pros of Visa for Traders

Almost all online brokers offer Visa as a deposit and withdrawal option. This is a distinct advantage for those looking to trade across multiple platforms. Customers are unlikely to be inconvenienced by a limited range of transfer options, ensuring you can find the best broker for your swing trading needs. The brand also works with most major banks, meaning the solution is available to traders worldwide.

In addition to the huge number of trading platforms that accept Visa, investors can also make payments in a variety of currencies. The firm supports every major currency and most smaller ones too. Of course, traders converting their funds between currencies will be subject to Visa’s exchange rates, which can be anywhere from 1% to 3.5%. To see how much conversions will cost, the company offers an online exchange rate calculator.

Finally, Visa card payments are designed to be user friendly. All you need to make a payment is your card details and possibly some biometric data. There is no need to call your bank or set up a specific Visa account, unlike Skrill or Neteller, for example.

Cons of Visa for Traders

A minority of trading platforms charge their customers for card transactions. Still, Visa is usually the cheapest method of withdrawing money and most leading brokers do not charge fees for deposits or withdrawals.

Visa, designed for traditional money transfers, is still developing its cryptocurrency support package. This means that those looking to fund trading accounts using Bitcoin, Ethereum, or other digital currencies, may find the process a little tricky. With that said, this is an exciting time for cryptos on the payment network. The firm has partnered with over 50 leading crypto wallets, is developing a native digital currency settlement on card networks, and is heavily investing in blockchain research. In addition, Visa is launching Crypto APIs, designed to transform banking and fintech products by adding digital currency features. The company has also invested in NFTs, including the ‘CryptoPunk’ avatar.

It is looking increasingly likely that customers will be able to easily buy and sell using cryptocurrencies in the near future. As a result, making deposits and withdrawals and using cryptos will become straightforward for traders.

Verdict

Sending money by Visa transfer is perhaps the easiest, quickest, and safest way of funding your swing trading account. The firm’s debit and credit cards, offered by many top banks, are accepted by most trading brokers. Also, Visa’s digital currency support is growing, offering exciting new opportunities for the crypto trading community.

FAQ