VISA INC., 10-Q filed on 5/4/2020
Quarterly Report
v3.20.1
Cover - shares
 6 Months Ended
Mar. 31, 2020
Apr. 30, 2020
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Transition Report false  
Entity File Number 001-33977  
Entity Registrant Name VISA INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 26-0267673  
Entity Address, Address Line One P.O. Box 8999  
Entity Address, Postal Zip Code 94128-8999  
Entity Address, City or Town San Francisco,  
Entity Address, State or Province CA  
City Area Code 650  
Local Phone Number 432-3200  
Title of 12(b) Security Class A Common Stock, par value $0.0001 per share  
Trading Symbol V  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001403161  
Current Fiscal Year End Date --09-30  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Class A common stock    
Entity Common Stock, Shares Outstanding   1,687,112,437
Class B common stock    
Entity Common Stock, Shares Outstanding   245,513,385
Class C common stock    
Entity Common Stock, Shares Outstanding   10,871,873
v3.20.1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Millions
Mar. 31, 2020
Sep. 30, 2019
Assets    
Cash and cash equivalents $ 9,740 $ 7,838
Restricted cash equivalents—U.S. litigation escrow (Note 4 and Note 5) 1,264 1,205
Investment securities (Note 6) 2,411 4,236
Settlement receivable 1,432 3,048
Accounts receivable 1,516 1,542
Customer collateral (Note 4 and Note 9) 1,698 1,648
Current portion of client incentives 957 741
Prepaid expenses and other current assets 889 712
Total current assets 19,907 20,970
Investment securities (Note 6) 1,064 2,157
Client incentives 3,110 2,084
Property, equipment and technology, net 2,776 2,695
Goodwill 15,755 15,656
Intangible assets, net 27,011 26,780
Other assets 3,197 2,232
Total assets 72,820 72,574
Liabilities    
Accounts payable 161 156
Settlement payable 1,869 3,990
Customer collateral (Note 4 and Note 9) 1,698 1,648
Accrued compensation and benefits 573 796
Client incentives 4,376 3,997
Accrued liabilities 1,998 1,625
Current maturities of debt (Note 8) 3,999 0
Accrued litigation (Note 14) 1,268 1,203
Total current liabilities 15,942 13,415
Long-term debt (Note 8) 13,893 16,729
Deferred tax liabilities 4,796 4,807
Other liabilities 3,604 2,939
Total liabilities 38,235 37,890
Equity    
Right to recover for covered losses (Note 5) (184) (171)
Additional paid-in capital 16,385 16,541
Accumulated income 13,366 13,502
Accumulated other comprehensive income (loss), net:    
Investment securities 6 6
Defined benefit pension and other postretirement plans (199) (192)
Derivative instruments 78 199
Foreign currency translation adjustments (329) (663)
Total accumulated other comprehensive income (loss), net (444) (650)
Total equity 34,585 34,684
Total liabilities and equity 72,820 72,574
Series A Preferred Stock    
Equity    
Preferred stock 0 0
UK&I preferred stock    
Equity    
Preferred stock 2,285 2,285
Europe preferred stock    
Equity    
Preferred stock 3,177 3,177
Class A common stock    
Equity    
Common stock 0 0
Class B common stock    
Equity    
Common stock 0 0
Class C common stock    
Equity    
Common stock $ 0 $ 0
v3.20.1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares
Mar. 31, 2020
Sep. 30, 2019
Preferred Stock    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 25,000,000 25,000,000
Preferred stock, shares issued (in shares) 5,000,000 5,000,000
Preferred stock, shares outstanding (in shares) 5,000,000 5,000,000
Series A Preferred Stock    
Preferred stock, shares issued (in shares) 0 0
UK&I preferred stock    
Preferred stock, shares issued (in shares) 2,000,000 2,000,000
Preferred stock, shares outstanding (in shares) 2,000,000 2,000,000
Europe preferred stock    
Preferred stock, shares issued (in shares) 3,000,000 3,000,000
Preferred stock, shares outstanding (in shares) 3,000,000 3,000,000
Class A common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 2,001,622,000,000 2,001,622,000,000
Common stock, shares issued (in shares) 1,693,000,000 1,718,000,000
Common stock, shares outstanding (in shares) 1,693,000,000 1,718,000,000
Class B common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 622,000,000 622,000,000
Common stock, shares issued (in shares) 245,000,000 245,000,000
Common stock, shares outstanding (in shares) 245,000,000 245,000,000
Class C common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 1,097,000,000 1,097,000,000
Common stock, shares issued (in shares) 11,000,000 11,000,000
Common stock, shares outstanding (in shares) 11,000,000 11,000,000
v3.20.1
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Revenues        
Net revenues $ 5,854 $ 5,494 $ 11,908 $ 11,000
Operating Expenses        
Personnel 940 894 1,922 1,701
Marketing 235 241 509 517
Network and processing 183 171 364 344
Professional fees 103 101 209 192
Depreciation and amortization 192 160 374 319
General and administrative 269 264 582 540
Litigation provision (Note 14) 8 22 8 29
Total operating expenses 1,930 1,853 3,968 3,642
Operating income 3,924 3,641 7,940 7,358
Non-operating Income (Expense)        
Interest expense, net (118) (140) (229) (285)
Investment income and other 23 176 92 234
Total non-operating income (expense) (95) 36 (137) (51)
Income before income taxes 3,829 3,677 7,803 7,307
Income tax provision (Note 13) 745 700 1,447 1,353
Net income $ 3,084 $ 2,977 $ 6,356 $ 5,954
Class A common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) $ 1.39 $ 1.31 $ 2.85 $ 2.61
Basic weighted-average shares outstanding (in shares) 1,703 1,748 1,708 1,754
Diluted earnings per share (in dollars per share) $ 1.38 $ 1.31 $ 2.85 $ 2.61
Diluted weighted-average shares outstanding (in shares) 2,228 2,279 2,234 2,285
Class B common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) $ 2.25 $ 2.13 $ 4.62 $ 4.25
Basic weighted-average shares outstanding (in shares) 245 245 245 245
Diluted earnings per share (in dollars per share) $ 2.25 $ 2.13 $ 4.62 $ 4.25
Diluted weighted-average shares outstanding (in shares) 245 245 245 245
Class C common stock        
Earnings Per Share        
Basic earnings per share (in dollars per share) $ 5.54 $ 5.23 $ 11.40 $ 10.44
Basic weighted-average shares outstanding (in shares) 11 12 11 12
Diluted earnings per share (in dollars per share) $ 5.54 $ 5.23 $ 11.38 $ 10.42
Diluted weighted-average shares outstanding (in shares) 11 12 11 12
v3.20.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Statement of Comprehensive Income [Abstract]        
Net income $ 3,084 $ 2,977 $ 6,356 $ 5,954
Investment securities:        
Net unrealized gain (loss) 5 7 5 15
Income tax effect (1) (2) (1) (4)
Reclassification adjustments (2) 0 (2) 0
Defined benefit pension and other postretirement plans:        
Net unrealized actuarial gain (loss) and prior service credit (cost) 3 0 2 (7)
Income tax effect (1) 0 (1) 1
Reclassification adjustments 2 0 6 0
Income tax effect 0 0 (1) 0
Derivative instruments:        
Net unrealized gain (loss) 47 59 (141) 97
Income tax effect (8) (13) 31 (23)
Reclassification adjustments (13) (22) (15) (47)
Income tax effect 3 4 4 9
Foreign currency translation adjustments (139) (394) 344 (681)
Other comprehensive income (loss), net of tax (104) (361) 231 (640)
Comprehensive income $ 2,980 $ 2,616 $ 6,587 $ 5,314
v3.20.1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($)
shares in Millions, $ in Millions
Total
Class A common stock
Preferred Stock
Preferred Stock
UK&I preferred stock
Preferred Stock
Europe preferred stock
Common Stock
Class A common stock
Common Stock
Class B common stock
Common Stock
Class C common stock
Right to Recover for Covered Losses
Additional Paid-In Capital
Accumulated Income
Accumulated Other Comprehensive Income (Loss), Net
Beginning balance (in shares) at Sep. 30, 2018       2 3 1,768 245 12        
Beginning balance at Sep. 30, 2018 $ 34,006   $ 5,470           $ (7) $ 16,678 $ 11,318 $ 547
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Net income 5,954                   5,954  
Other comprehensive income (loss), net of tax (640)                     (640)
Comprehensive income 5,314                      
Adoption of new accounting standards (Note 1) 392                   385 7
VE territory covered losses incurred (Note 5) (162)               (162)      
Recovery through conversion rate adjustment (Note 5 and Note 10)     (6)           6      
Conversion of class C common stock upon sales into public market (in shares)           1   0 [1]        
Vesting of restricted stock and performance-based shares (in shares)           3            
Share-based compensation, net of forfeitures (Note 12) 211                 211    
Restricted stock and performance-based shares settled in cash for taxes (in shares)           (1)            
Restricted stock and performance-based shares settled in cash for taxes (103)                 (103)    
Cash proceeds from issuance of common stock under employee equity plans (in shares)           1            
Cash proceeds from issuance of common stock under employee equity plans 89                 89    
Cash dividends declared and paid, at a quarterly amount per Class A share (1,141)                   (1,141)  
Repurchase of class A common stock (Note 10) (in shares)   (31)       (31)            
Repurchase of class A common stock (Note 10) (4,331) $ (4,331)               (328) (4,003)  
Ending balance (in shares) at Mar. 31, 2019       2 3 1,741 245 12        
Ending balance at Mar. 31, 2019 34,275   5,464           (163) 16,547 12,513 (86)
Beginning balance (in shares) at Dec. 31, 2018       2 3 1,754 245 12        
Beginning balance at Dec. 31, 2018 34,095   5,464           (92) 16,540 11,908 275
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Net income 2,977                   2,977  
Other comprehensive income (loss), net of tax (361)                     (361)
Comprehensive income 2,616                      
Adoption of new accounting standards (Note 1) (8)                   (8)  
VE territory covered losses incurred (Note 5) (71)               (71)      
Conversion of class C common stock upon sales into public market (in shares)           1   0 [1]        
Vesting of restricted stock and performance-based shares (in shares) [1]           0            
Share-based compensation, net of forfeitures (Note 12) 111                 111    
Restricted stock and performance-based shares settled in cash for taxes (in shares) [1]           0            
Restricted stock and performance-based shares settled in cash for taxes (2)                 (2)    
Cash proceeds from issuance of common stock under employee equity plans (in shares) [1]           0            
Cash proceeds from issuance of common stock under employee equity plans 41                 41    
Cash dividends declared and paid, at a quarterly amount per Class A share (569)                   (569)  
Repurchase of class A common stock (Note 10) (in shares)   (14)       (14)            
Repurchase of class A common stock (Note 10) (1,938) $ (1,938)               (143) (1,795)  
Ending balance (in shares) at Mar. 31, 2019       2 3 1,741 245 12        
Ending balance at Mar. 31, 2019 34,275   5,464           (163) 16,547 12,513 (86)
Beginning balance (in shares) at Sep. 30, 2019       2 3 1,718 245 11        
Beginning balance at Sep. 30, 2019 34,684   5,462           (171) 16,541 13,502 (650)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Net income 6,356                   6,356  
Other comprehensive income (loss), net of tax 231                     231
Comprehensive income 6,587                      
Adoption of new accounting standards (Note 1) 0                   25 (25)
VE territory covered losses incurred (Note 5) (13)               (13)      
Conversion of class C common stock upon sales into public market (in shares)           3   0        
Vesting of restricted stock and performance-based shares (in shares)           3            
Share-based compensation, net of forfeitures (Note 12) 215                 215    
Restricted stock and performance-based shares settled in cash for taxes (in shares)           1            
Restricted stock and performance-based shares settled in cash for taxes (155)                 (155)    
Cash proceeds from issuance of common stock under employee equity plans (in shares)           1            
Cash proceeds from issuance of common stock under employee equity plans 109                 109    
Cash dividends declared and paid, at a quarterly amount per Class A share (1,339)                   (1,339)  
Repurchase of class A common stock (Note 10) (in shares)   (31)       (31)            
Repurchase of class A common stock (Note 10) (5,503) $ (5,503)               (325) (5,178)  
Ending balance (in shares) at Mar. 31, 2020       2 3 1,693 245 11        
Ending balance at Mar. 31, 2020 34,585   5,462           (184) 16,385 13,366 (444)
Beginning balance (in shares) at Dec. 31, 2019       2 3 1,709 245 11        
Beginning balance at Dec. 31, 2019 35,270   5,462           (175) 16,424 13,899 (340)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Net income 3,084                   3,084  
Other comprehensive income (loss), net of tax (104)                     (104)
Comprehensive income 2,980                      
VE territory covered losses incurred (Note 5) (9)               (9)      
Conversion of class C common stock upon sales into public market (in shares)           2   0 [1]        
Vesting of restricted stock and performance-based shares (in shares)           0            
Share-based compensation, net of forfeitures (Note 12) 99                 99    
Restricted stock and performance-based shares settled in cash for taxes (in shares)           0            
Restricted stock and performance-based shares settled in cash for taxes (8)                 (8)    
Cash proceeds from issuance of common stock under employee equity plans (in shares)           0            
Cash proceeds from issuance of common stock under employee equity plans 54                 54    
Cash dividends declared and paid, at a quarterly amount per Class A share (668)                   (668)  
Repurchase of class A common stock (Note 10) (in shares)   (18)       (18)            
Repurchase of class A common stock (Note 10) (3,133) $ (3,133)               (184) (2,949)  
Ending balance (in shares) at Mar. 31, 2020       2 3 1,693 245 11        
Ending balance at Mar. 31, 2020 $ 34,585   $ 5,462           $ (184) $ 16,385 $ 13,366 $ (444)
[1]
Increase or decrease is less than one million shares.
v3.20.1
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) (Parenthetical) - $ / shares
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]        
Cash dividends declared and paid, quarterly, per Class A share (in dollars per share) $ 0.30 $ 0.25 $ 0.30 $ 0.25
v3.20.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Operating Activities    
Net income $ 6,356 $ 5,954
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Client incentives (Note 3) 3,453 2,934
Share-based compensation (Note 12) 215 211
Depreciation and amortization of property, equipment, technology and intangible assets 374 319
Deferred income taxes (37) 256
VE territory covered losses incurred (Note 5) (13) (162)
Other (84) (106)
Change in operating assets and liabilities:    
Settlement receivable 1,642 (23)
Accounts receivable 38 (203)
Client incentives (4,323) (3,142)
Other assets (496) (245)
Accounts payable 14 (48)
Settlement payable (2,165) (38)
Accrued and other liabilities 303 170
Accrued litigation (Note 14) 65 (519)
Net cash provided by (used in) operating activities 5,342 5,358
Investing Activities    
Purchases of property, equipment and technology (407) (313)
Investment securities:    
Purchases (499) (1,806)
Proceeds from maturities and sales 3,420 2,038
Acquisitions, net of cash acquired (77) 0
Purchases of / contributions to other investments (30) (236)
Proceeds / distributions from other investments 2 10
Other investing activities 32 (89)
Net cash provided by (used in) investing activities 2,441 (396)
Financing Activities    
Repurchase of class A common stock (Note 10) (5,503) (4,331)
Dividends paid (Note 10) (1,339) (1,141)
Proceeds from issuance of commercial paper (Note 8) 1,001 0
Cash proceeds from issuance of common stock under employee equity plans 109 89
Restricted stock and performance-based shares settled in cash for taxes (155) (103)
Net cash provided by (used in) financing activities (5,887) (5,486)
Effect of exchange rate changes on cash and cash equivalents 88 (171)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents 1,984 (695)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period (Note 4) 10,832 10,977
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period (Note 4) 12,816 10,282
Supplemental Disclosure    
Income taxes paid, net of refunds 1,691 1,381
Interest payments on debt 269 269
Accruals related to purchases of property, equipment and technology $ 42 $ 51
v3.20.1
Summary of Significant Accounting Policies
 6 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 1—Summary of Significant Accounting Policies
Organization. Visa Inc. (“Visa” or the “Company”) is a global payments technology company that enables fast, secure and reliable electronic payments across more than 200 countries and territories. Visa and its wholly-owned consolidated subsidiaries, including Visa U.S.A. Inc. (“Visa U.S.A.”), Visa International Service Association (“Visa International”), Visa Worldwide Pte. Limited, Visa Europe Limited (“Visa Europe”), Visa Canada Corporation (“Visa Canada”), Visa Technology & Operations LLC and CyberSource Corporation, operate one of the world’s largest electronic payments networks — VisaNet — which facilitates authorization, clearing and settlement of payment transactions and enables the Company to provide its financial institution and merchant clients a wide range of products, platforms and value-added services. Visa is not a financial institution and does not issue cards, extend credit or set rates and fees for account holders on Visa products. In most cases, account holder and merchant relationships belong to, and are managed by, Visa’s financial institution clients.
Consolidation and basis of presentation. The accompanying unaudited consolidated financial statements include the accounts of Visa and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for which the Company is the primary beneficiary. The Company’s investments in VIEs have not been material to its unaudited consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation.
The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (“SEC”) requirements for Quarterly Reports on Form 10-Q and, consequently, do not include all of the annual disclosures required by U.S. GAAP. Reference should be made to the Visa Annual Report on Form 10-K for the year ended September 30, 2019 for additional disclosures, including a summary of the Company’s significant accounting policies.
In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented.
Use of estimates. The preparation of accompanying unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates may change, as new events occur and additional information is obtained, and will be recognized in the consolidated financial statements in the period in which such changes occur. Future actual results could differ materially from these estimates. The worldwide spread of coronavirus (“COVID-19”) has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict.
Recently Issued and Adopted Accounting Pronouncements.
In February 2016, the FASB issued ASU 2016-02, which requires the recognition of lease assets and lease liabilities arising from operating leases on the balance sheet. Subsequently, the FASB also issued a series of amendments to this new leases standard that address the transition methods available and clarify the guidance for lessor costs and other aspects of the new leases standard. The Company adopted the standard effective October 1, 2019 using the modified retrospective transition method with comparative periods continuing to be reported using the prior leases standard. The Company elected to apply the package of practical expedients permitted under the transition guidance, allowing the Company to carry forward the historical assessment of whether a contract was or contains a lease, lease classification and capitalization of initial direct costs. The adoption did not have a material impact on the consolidated financial statements.
In accordance with ASU 2016-02, the Company determines if an arrangement is a lease at its inception. Right-of-use (“ROU”) assets, and corresponding lease liabilities, are recognized at the commencement date based on the
present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As a majority of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company does not record a ROU asset and corresponding liability for leases with terms of 12 months or less.
The Company does not include renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company does not combine lease payments with non-lease components for any of its leases. Operating leases are recorded as ROU assets, which are included in other assets. The current portion of lease liabilities are included in accrued liabilities and the long-term portion is included in other liabilities on the consolidated balance sheet. The Company’s lease cost consists of amounts recognized under lease agreements in the results of operations adjusted for impairment and sublease income.
In February 2018, the FASB issued ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S. federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Company adopted the ASU effective October 1, 2019. The adoption did not have a material impact on the consolidated financial statements.
In December 2019, the FASB issued ASU 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. The amendments in the ASU are effective for the Company on October 1, 2021. The Company does not plan to early adopt the ASU at this time. The adoption is not expected to have a material impact on the consolidated financial statements.
In January 2020, the FASB issued ASU 2020-01, which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the fair value measurement alternative. The amendments in the ASU are effective for the Company on October 1, 2021. The adoption is not expected to have a material impact on the consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform. The amendments in the ASU are effective for the Company upon issuance through December 31, 2022. The Company is evaluating the effect ASU 2020-04 will have on its consolidated financial statements.
v3.20.1
Acquisitions
 6 Months Ended
Mar. 31, 2020
Business Combinations [Abstract]  
Acquisitions
Note 2—Acquisitions
Pending Acquisition. On January 13, 2020, the Company entered into a definitive agreement to acquire Plaid, Inc. for $5.3 billion. The Company will pay approximately $4.9 billion of cash and $0.4 billion of retention equity and deferred equity consideration. This acquisition is subject to customary closing conditions, including ongoing regulatory reviews and approvals, which are expected to be completed by the end of 2020.
v3.20.1
Revenues
 6 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenues
Note 3—Revenues
The nature, amount, timing and uncertainty of the Company’s revenues and cash flows and how they are affected by economic factors are most appropriately depicted through the Company’s revenue categories and geographical markets. The following tables disaggregate the Company’s net revenues by revenue category and by geography for the three and six months ended March 31, 2020 and 2019:
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
(in millions)
Service revenues
$
2,623

 
$
2,417

 
$
5,178

 
$
4,759

Data processing revenues
2,711

 
2,432

 
5,575

 
4,902

International transaction revenues
1,833

 
1,796

 
3,851

 
3,647

Other revenues
392

 
327

 
757

 
626

Client incentives
(1,705
)
 
(1,478
)
 
(3,453
)
 
(2,934
)
Net revenues
$
5,854

 
$
5,494

 
$
11,908

 
$
11,000

 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
(in millions)
U.S.
$
2,650

 
$
2,479

 
$
5,367

 
$
4,987

International
3,204

 
3,015

 
6,541

 
6,013

Net revenues
$
5,854

 
$
5,494

 
$
11,908

 
$
11,000
v3.20.1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
 6 Months Ended
Mar. 31, 2020
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]  
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Note 4—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
The Company’s cash and cash equivalents include cash and certain highly liquid investments with original maturities of 90 days or less from the date of purchase. Cash equivalents are primarily recorded at cost, which approximates fair value due to their generally short maturities. The Company defines restricted cash and restricted cash equivalents as cash and cash equivalents that cannot be withdrawn or used for general operating activities.
The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:
 
March 31,
2020
 
September 30,
2019
 
(in millions)
Cash and cash equivalents
$
9,740

 
$
7,838

Restricted cash and restricted cash equivalents:
 
 
 
U.S. litigation escrow
1,264

 
1,205

Customer collateral
1,698

 
1,648

Prepaid expenses and other current assets
114

 
141

Cash, cash equivalents, restricted cash and restricted cash equivalents
$
12,816

 
$
10,832
v3.20.1
U.S. and Europe Retrospective Responsibility Plan
 6 Months Ended
Mar. 31, 2020
Retrospective Responsibility Plan [Abstract]  
U.S. and Europe Retrospective Responsibility Plan
Note 5—U.S. and Europe Retrospective Responsibility Plans
U.S. Retrospective Responsibility Plan
Under the terms of the U.S. retrospective responsibility plan, the Company maintains an escrow account from which settlements of, or judgments in, certain litigation referred to as the “U.S. covered litigation” are paid. The escrow funds are held in money market investments along with interest income earned, less applicable taxes, and are classified as restricted cash equivalents on the consolidated balance sheets.
On December 13, 2019, the district court entered the final judgment order approving the Amended Settlement Agreement with the Damages Class plaintiffs in the Interchange Multidistrict Litigation proceedings. A takedown payment of approximately $467 million was received on December 27, 2019, and deposited into the Company’s litigation escrow account. The deposit into the litigation escrow account and reestablishment of a prior accrual to address opt-out claims was recorded during the six months ended March 31, 2020. The accrual related to the U.S. covered litigation could be either higher or lower than the litigation escrow account balance. See Note 14—Legal Matters.
The following table sets forth the changes in the restricted cash equivalents—U.S. litigation escrow account:
 
Six Months Ended
March 31,
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
1,205

 
$
1,491

Return of takedown payment to the litigation escrow account
467

 
—

Payments to class plaintiffs’ settlement fund(1)
—

 
(600
)
Payments to opt-out merchants(1) and interest earned on escrow funds
(408
)
 
8

Balance at end of period
$
1,264

 
$
899

(1) 
These payments are associated with the Interchange Multidistrict Litigation. See Note 14—Legal Matters.
Europe Retrospective Responsibility Plan
Visa Inc., Visa International and Visa Europe are parties to certain existing and potential litigation relating to the setting of multilateral interchange fee rates in the Visa Europe territory (the “VE territory covered litigation”). Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover certain losses resulting from VE territory covered litigation (the “VE territory covered losses”) through a periodic adjustment to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. VE territory covered losses are recorded in “right to recover for covered losses” within equity before the corresponding adjustment to the applicable conversion rate is effected. Adjustments to the conversion rate may be executed once in any six-month period unless a single, individual loss greater than €20 million is incurred, in which case, the six-month limitation does not apply. When the adjustment to the conversion rate is made, the amount previously recorded in “right to recover for covered losses” as contra-equity is then recorded against the book value of the preferred stock within stockholders’ equity. See Note 14—Legal Matters. There were no adjustments to the conversion rates during the six months ended March 31, 2020.
 
 
 
 
 
 

The following table sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of March 31, 2020 and September 30, 2019:
 
March 31, 2020
 
September 30, 2019
 
As-Converted Value of Preferred Stock(1),(2)
 
Book Value of Preferred Stock(1)
 
As-Converted Value of Preferred Stock(1),(3)
 
Book Value of Preferred Stock(1)
 
(in millions)
UK&I preferred stock
$
5,170

 
$
2,285

 
$
5,519

 
$
2,285

Europe preferred stock
7,062

 
3,177

 
7,539

 
3,177

Total
12,232

 
5,462

 
13,058

 
5,462

Less: right to recover for covered losses
(184
)
 
(184
)
 
(171
)
 
(171
)
Total recovery for covered losses available
$
12,048

 
$
5,278

 
$
12,887

 
$
5,291

(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
(2) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of March 31, 2020; (b) 12.936 and 13.884, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of March 31, 2020, respectively; and (c) $161.12, Visa’s class A common stock closing stock price as of March 31, 2020.
(3) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2019; (b) 12.936 and 13.884, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2019, respectively; and (c) $172.01, Visa’s class A common stock closing stock price as of September 30, 2019.
v3.20.1
Fair Value Measurements and Investments
 6 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Investments
Note 6—Fair Value Measurements and Investments
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
Fair Value Measurements
Using Inputs Considered as
 
Level 1
 
Level 2
 
March 31,
2020
 
September 30,
2019
 
March 31,
2020
 
September 30,
2019
 
(in millions)
Assets
 
 
 
 
 
 
 
Cash equivalents and restricted cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
8,864

 
$
6,494

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
$
—

 
$
150

Investment securities:
 
 
 
 
 
 
 
Marketable equity securities
121

 
126

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
3,149

 
5,592

U.S. Treasury securities
205

 
675

 
 
 
 
Other current and non-current assets:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
768

 
437

Total
$
9,190

 
$
7,295

 
$
3,917

 
$
6,179

Liabilities
 
 
 
 
 
 
 
Accrued compensation and benefits:
 
 
 
 
 
 
 
Deferred compensation liability
$
111

 
$
113

 
 
 
 
Accrued and other liabilities:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
$
272

 
$
52

Total
$
111

 
$
113

 
$
272

 
$
52


There were no transfers between Level 1 and Level 2 assets during the six months ended March 31, 2020.
Level 1 assets. Money market funds, marketable equity securities and U.S. Treasury securities are classified as Level 1 within the fair value hierarchy, as fair value is based on quoted prices in active markets. The Company’s deferred compensation liability is measured at fair value based on marketable equity securities held under the deferred compensation plan.
Level 2 assets and liabilities. The fair value of U.S. government-sponsored debt securities, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. Derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. There were no substantive changes to the valuation techniques and related inputs used to measure fair value during the six months ended March 31, 2020.
U.S. government-sponsored debt securities and U.S. Treasury securities. The Company considers U.S. government-sponsored debt securities and U.S. Treasury securities to be available-for-sale and held $3.4 billion and $6.3 billion of these investment securities as of March 31, 2020 and September 30, 2019, respectively. All of the Company’s long-term available-for-sale investment securities are due within one to five years.

Assets Measured at Fair Value on a Non-recurring Basis
Non-marketable equity securities. The Company’s non-marketable equity securities are investments in privately held companies without readily determinable market values. These investments are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity and the fact that inputs used to measure fair value are unobservable and require management’s judgment.
During the three months ended March 31, 2020, the Company recorded no material upward or downward adjustments. During the six months ended March 31, 2020, $9 million of upward adjustments and no material downward adjustments were included in the carrying value of non-marketable equity securities. During the three and six months ended March 31, 2020 and 2019, there were no impairments. The following table summarizes the total carrying value of the Company’s non-marketable equity securities held as of March 31, 2020 including cumulative unrealized gains and losses:
 
March 31, 2020
 
(in millions)
Initial cost basis
$
611

Upward adjustments
119

Downward adjustments (including impairment)
(5
)
Carrying amount, end of period
$
725

Non-financial assets and liabilities. Long-lived assets such as goodwill, indefinite-lived intangible assets, finite-lived intangible assets and property, equipment and technology are considered non-financial assets. The Company does not have any non-financial liabilities measured at fair value on a non-recurring basis. Finite-lived intangible assets primarily consist of customer relationships and trade names, all of which were obtained through acquisitions.
If the Company were required to perform a quantitative assessment for impairment testing of goodwill and indefinite-lived intangible assets, the fair values would generally be estimated using an income approach. As the assumptions employed to measure these assets on a non-recurring basis are based on management’s judgment using internal and external data, these fair value determinations are classified as Level 3 in the fair value hierarchy. The Company completed its annual impairment review of its indefinite-lived intangible assets and goodwill as of February 1, 2020, and concluded that there was no impairment. No recent events or changes in circumstances indicate that impairment existed at March 31, 2020.
Gains and Losses on Marketable and Non-marketable Equity Securities
Gains and losses on the Company’s equity securities are summarized below.
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
(in millions)
Net gain (loss) on equity securities sold during the period
$
1

 
$
15

 
$
5

 
$
15

Unrealized gain (loss) on equity securities held as of the end of the period
(23
)
 
79

 
(9
)
 
59

Total gain (loss) recognized in non-operating income (expense), net
$
(22
)
 
$
94

 
$
(4
)
 
$
74


Other Fair Value Disclosures
Long-term debt. Debt instruments are measured at amortized cost on the Company’s consolidated balance sheets. The fair value of the debt instruments, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. The pricing data obtained from outside sources is reviewed internally for reasonableness, compared against benchmark quotes from independent pricing sources, then confirmed or revised accordingly. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of long-term debt was $16.9 billion and $18.6 billion,
respectively, as of March 31, 2020. The carrying value and estimated fair value of long-term debt was $16.7 billion and $18.4 billion, respectively, as of September 30, 2019.
Other financial instruments not measured at fair value. The following financial instruments are not measured at fair value on the Company’s unaudited consolidated balance sheet at March 31, 2020, but disclosure of their fair values is required: settlement receivable and payable, accounts receivable, commercial paper and customer collateral. The estimated fair value of such instruments at March 31, 2020 approximates their carrying value due to their generally short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 in the fair value hierarchy.
v3.20.1
Leases
 6 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Leases
Note 7—Leases
The Company entered into various operating lease agreements primarily for real estate. The Company's leases have original lease periods expiring between fiscal 2020 and 2030. Many leases include one or more options to renew. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Payments under the Company’s lease arrangements are generally fixed. At March 31, 2020, the Company had no finance leases.
During the three and six months ended March 31, 2020, total operating lease cost was $29 million and $55 million, respectively. At March 31, 2020, the weighted average remaining lease term for operating leases was approximately 7 years and the weighted average discount rate for operating leases was 2.28%.
At March 31, 2020, the present value of future minimum lease payments was as follows:
 
 
March 31, 2020
 
 
(in millions)
Remainder of 2020
 
$
48

2021
 
112

2022
 
96

2023
 
89

2024
 
76

Thereafter
 
214

Total undiscounted lease payments
 
635

Less: imputed interest
 
(48
)
Present value of lease liabilities
 
$
587


At March 31, 2020, the Company had additional operating leases that had not yet commenced with lease obligations of $465 million. These operating leases will commence between fiscal 2020 and 2023 with non-cancellable lease terms of 3 to 15 years.
v3.20.1
Debt
 6 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Debt
Note 8—Debt
The Company had outstanding debt as follows:
 
March 31,
2020
 
September 30,
2019
 
Effective Interest Rate(1)
 
(in millions, except percentages)
Commercial paper
$
1,002

 
$
—

 
1.55
%
2.20% Senior Notes due December 2020
3,000

 
3,000

 
2.30
%
2.15% Senior Notes due September 2022
1,000

 
1,000

 
2.30
%
2.80% Senior Notes due December 2022
2,250

 
2,250

 
2.89
%
3.15% Senior Notes due December 2025
4,000

 
4,000

 
3.26
%
2.75% Senior Notes due September 2027
750

 
750

 
2.91
%
4.15% Senior Notes due December 2035
1,500

 
1,500

 
4.23
%
4.30% Senior Notes due December 2045
3,500

 
3,500

 
4.37
%
3.65% Senior Notes due September 2047
750

 
750

 
3.73
%
Total debt
17,752

 
16,750

 
 
Unamortized discounts and debt issuance costs
(103
)
 
(108
)
 
 
Hedge accounting fair value adjustments(2)
243

 
87

 
 
Total carrying value of debt
$
17,892

 
$
16,729

 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
Current maturities of debt
$
3,999

 
$
—

 
 
Long-term debt
13,893

 
16,729

 
 
Total carrying value of debt
$
17,892

 
$
16,729

 
 

(1) 
Effective interest rates disclosed do not reflect hedge accounting adjustments.
(2) 
Represents the change in fair value of interest rate swap agreements entered into on a portion of certain outstanding senior notes.
Commercial Paper Program
Visa maintains a commercial paper program to support its working capital requirements and for other general corporate purposes. Under the program, the Company is authorized to issue up to $3.0 billion in outstanding notes, with maturities up to 397 days from the date of issuance. At March 31, 2020, the commercial paper outstanding had remaining maturities of less than 12 months.
Senior Notes
In April 2020, the Company issued fixed-rate senior notes in a public offering in an aggregate principal amount of $4.0 billion, with maturities ranging between 7 and 20 years. The April 2027 Notes, 2030 Notes and 2040 Notes, or collectively, the "2020 Notes", have interest rates of 1.90%, 2.05% and 2.70%, respectively. Interest on the 2020 Notes is payable semi-annually on April 15 and October 15 of each year, commencing October 15, 2020. The net aggregate proceeds, after deducting discounts and debt issuance costs, were approximately $4.0 billion. The Company plans to use the net proceeds for general corporate purposes.
v3.20.1
Settlement Guarantee Management
 6 Months Ended
Mar. 31, 2020
Settlement Guarantee Management [Abstract]  
Settlement Guarantee Management
Note 9—Settlement Guarantee Management
The Company indemnifies its clients for settlement losses suffered due to failure of any other client to fund its settlement obligations in accordance with the Visa operating rules. This indemnification creates settlement risk for the Company due to the difference in timing between the date of a payment transaction and the date of subsequent settlement.
Historically, the Company has experienced minimal losses as a result of its settlement risk guarantee. However, the Company’s future obligations, which could be material under its guarantees, are not determinable as they are dependent upon future events.
The Company’s settlement exposure is limited to the amount of unsettled Visa payment transactions at any point in time, which vary significantly day to day. The Company’s maximum daily settlement exposure was $97.3 billion and the average daily settlement exposure was $56.7 billion during the six months ended March 31, 2020.
The Company maintains and regularly reviews global settlement risk policies and procedures to manage settlement exposure, which may require clients to post collateral if certain credit standards are not met. At March 31, 2020 and September 30, 2019, the Company held collateral as follows:

March 31,
2020
 
September 30,
2019
 
(in millions)
Restricted cash and restricted cash equivalents
$
1,698

 
$
1,648

Pledged securities at market value
235

 
259

Letters of credit
1,300

 
1,293

Guarantees
508

 
477

Total
$
3,741

 
$
3,677
v3.20.1
Stockholders' Equity
 6 Months Ended
Mar. 31, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
Note 10—Stockholders’ Equity
As-converted class A common stock. The following table presents the number of shares of each series and class of stock and the number of shares of class A common stock on an as-converted basis:
 
March 31, 2020
 
September 30, 2019
 
Shares
Outstanding
 
Conversion Rate Into 
Class A
Common Stock
 
As-converted Class A
Common
Stock(1)
 
Shares
Outstanding
 
Conversion Rate Into
Class A
Common Stock
 
As-converted Class A
Common
Stock(1)
 
(in millions, except conversion rates)
UK&I preferred stock
2

 
12.9360

 
32

 
2

 
12.9360

 
32

Europe preferred stock
3

 
13.8840

 
44

 
3

 
13.8840

 
44

Class A common stock(2)
1,693

 
—

 
1,693

 
1,718

 
—

 
1,718

Class B common stock
245

 
1.6228

(3) 
398

 
245

 
1.6228

(3) 
398

Class C common stock
11

 
4.0000

 
43

 
11

 
4.0000

 
45

Total
 
 
 
 
2,210

 
 
 
 
 
2,237


(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted class A common stock is calculated based on unrounded numbers.
(2) 
Class A common stock shares outstanding reflect repurchases that settled on or before March 31, 2020 and September 30, 2019.
(3) 
The class B to class A common stock conversion rate is presented on a rounded basis. Conversion calculations for dividend payments are based on a conversion rate rounded to the tenth decimal.
Reduction in as-converted shares. Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover VE territory covered losses through periodic adjustments to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. The recovery has the same economic effect on earnings per share as repurchasing the Company’s class A common stock, because it reduces the UK&I and Europe preferred stock conversion rates and consequently, reduces the as-converted class A common stock share count. There were no conversion rate adjustments in the six months ended March 31, 2020. See Note 5—U.S. and Europe Retrospective Responsibility Plans.
 
 
 
 
 
 
 
 

Common stock repurchases. The following table presents share repurchases in the open market for the following periods:
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
(in millions, except per share data)
Shares repurchased in the open market(1)
18

 
14

 
31

 
31

Average repurchase price per share(2)
$
181.11

 
$
144.94

 
$
180.31

 
$
141.08

Total cost(2)
$
3,133

 
$
1,938

 
$
5,503

 
$
4,331

(1)  
Shares repurchased in the open market reflect repurchases that settled during the three and six months ended March 31, 2020 and 2019. All shares repurchased in the open market have been retired and constitute authorized but unissued shares.
(2) 
Figures in the table may not recalculate exactly due to rounding. Average repurchase price per share and total cost is calculated based on unrounded numbers.
In January 2019, the Company’s board of directors authorized an $8.5 billion share repurchase program and in January 2020, authorized an additional $9.5 billion share purchase program. These authorizations have no expiration date. As of March 31, 2020, the Company’s January 2020 share repurchase program had remaining authorized funds of $8.1 billion for share repurchase. All share repurchase programs authorized prior to January 2020 have been completed.
Dividends. On April 21, 2020, the Company’s board of directors declared a quarterly cash dividend of $0.30 per share of class A common stock (determined in the case of class B and C common stock and UK&I and Europe preferred stock on an as-converted basis). The cash dividend will be paid on June 2, 2020, to all holders of record as of May 14, 2020. The Company declared and paid $668 million and $569 million during the three months ended March 31, 2020 and 2019, respectively and $1.3 billion and $1.1 billion during the six months ended March 31, 2020 and 2019, respectively, in dividends to holders of the Company’s common and preferred stocks.
v3.20.1
Earnings Per Share
 6 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share
Note 11—Earnings Per Share
Basic earnings per share is computed by dividing net income available to each class of shares by the weighted-average number of shares of common stock outstanding and participating securities during the period. Net income is allocated to each class of common stock and participating securities based on its proportional ownership on an as-converted basis. The weighted-average number of shares outstanding of each class of common stock reflects changes in ownership over the periods presented. See Note 10—Stockholders’ Equity.
Diluted earnings per share is computed by dividing net income available by the weighted-average number of shares of common stock outstanding, participating securities and, if dilutive, potential class A common stock equivalent shares outstanding during the period. Dilutive class A common stock equivalents may consist of: (1) shares of class A common stock issuable upon the conversion of UK&I and Europe preferred stock and class B and C common stock based on the conversion rates in effect through the period, and (2) incremental shares of class A common stock calculated by applying the treasury stock method to the assumed exercise of employee stock options, the assumed purchase of stock under the Company’s Employee Stock Purchase Plan and the assumed vesting of unearned performance shares.
The following table presents earnings per share for the three months ended March 31, 2020:
 
Basic Earnings Per Share
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
Class A common stock
$
2,360

 
1,703

 
$
1.39

 
$
3,084

 
2,228

(3) 
$
1.38

Class B common stock
552

 
245

 
$
2.25

 
$
551

 
245

 
$
2.25

Class C common stock
61

 
11

 
$
5.54

 
$
60

 
11

 
$
5.54

Participating securities(4)
111

 
Not presented

 
Not presented

 
$
111

 
Not presented

 
Not presented

Net income
$
3,084

 
 
 
 
 
 
 
 
 
 
The following table presents earnings per share for the six months ended March 31, 2020:
 
Basic Earnings Per Share
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
Class A common stock
$
4,866

 
1,708

 
$
2.85

 
$
6,356

 
2,234

(3) 
$
2.85

Class B common stock
1,135

 
245

 
$
4.62

 
$
1,134

 
245

 
$
4.62

Class C common stock
126

 
11

 
$
11.40

 
$
125

 
11

 
$
11.38

Participating securities(4)
229

 
Not presented

 
Not presented

 
$
229

 
Not presented

 
Not presented

Net income
$
6,356

 
 
 
 
 
 
 
 
 
 
The following table presents earnings per share for the three months ended March 31, 2019:
 
Basic Earnings Per Share
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
Class A common stock
$
2,287

 
1,748

 
$
1.31

 
$
2,977

 
2,279

(3) 
$
1.31

Class B common stock
523

 
245

 
$
2.13

 
$
523

 
245

 
$
2.13

Class C common stock
61

 
12

 
$
5.23

 
$
61

 
12

 
$
5.23

Participating securities(4)
106

 
Not presented

 
Not presented

 
$
106

 
Not presented

 
Not presented

Net income
$
2,977

 
 
 
 
 
 
 
 
 
 
The following table presents earnings per share for the six months ended March 31, 2019:
 
Basic Earnings Per Share
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
Class A common stock
$
4,577

 
1,754

 
$
2.61

 
$
5,954

 
2,285

(3) 
$
2.61

Class B common stock
1,044

 
245

 
$
4.25

 
$
1,043

 
245

 
$
4.25

Class C common stock
122

 
12

 
$
10.44

 
$
122

 
12

 
$
10.42

Participating securities(4)
211

 
Not presented

 
Not presented

 
$
211

 
Not presented

 
Not presented

Net income
$
5,954

 
 
 
 
 
 
 
 
 
 

(1) 
Net income is allocated based on proportional ownership on an as-converted basis. The weighted-average number of shares of as-converted class B common stock used in the income allocation was 398 million for the three and six months ended March 31, 2020 and 400 million for the three and six months ended March 31, 2019. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 44 million for the three and six months ended March 31, 2020 and 47 million for the three and six months ended March 31, 2019. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three and six months ended March 31, 2020 and 2019, and 44 million of as-converted Europe preferred stock for the three and six months ended March 31, 2020 and 2019.
(2) 
Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
(3) 
Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes common stock equivalents of 3 million for the three and six months ended March 31, 2020 and 2019, because their effect would have been dilutive. The computation excludes common stock equivalents of 1 million and 2 million for the three and six months ended March 31, 2020, respectively, and 1 million for the three and six months ended March 31, 2019, because their effect would have been anti-dilutive.
(4) 
Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the UK&I and Europe preferred stock and restricted stock units. Participating securities’ income is allocated based on the weighted-average number of shares of as-converted stock.
v3.20.1
Share-based Compensation
 6 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Share-based Compensation
Note 12—Share-based Compensation
The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the six months ended March 31, 2020:
 
Granted
 
Weighted-Average
Grant Date Fair
Value
 
Weighted-Average
Exercise Price
Non-qualified stock options
1,247,982

 
$
29.37

 
$
182.50

Restricted stock units
2,264,886

 
$
183.27

 
 
Performance-based shares(1)
470,128

 
$
211.08

 
 
(1)  
Represents the maximum number of performance-based shares which could be earned.
The Company recorded share-based compensation cost related to the EIP of $93 million and $106 million for the three months ended March 31, 2020 and 2019, respectively, and $204 million and $201 million for the six months ended March 31, 2020 and 2019, respectively, net of estimated forfeitures, which are adjusted as appropriate.
v3.20.1
Income Taxes
 6 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
Note 13—Income Taxes
The effective income tax rates were 19% for the three and six months ended March 31, 2020 and 2019.
During the three and six months ended March 31, 2020, the Company’s gross unrecognized tax benefits increased by $112 million and $175 million, respectively. The Company’s net unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate, increased by $26 million and $39 million, respectively. The change in unrecognized tax benefits is primarily related to various tax positions across several jurisdictions. During the three and six months ended March 31, 2020 and 2019, there were no significant changes in interest and penalties related to uncertain tax positions.
The Company’s tax filings are subject to examination by the U.S. federal, state and foreign taxing authorities. The timing and outcome of the final resolutions of the various ongoing income tax examinations are highly uncertain. It is not reasonably possible to estimate the increase or decrease in unrecognized tax benefits within the next twelve months.
The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in the U.S. on March 27, 2020. The CARES Act includes several U.S. income tax provisions related to, among other things, net operating loss carrybacks, alternative minimum tax credits, modifications to the net interest deduction limitations, and technical amendments regarding the income tax depreciation of qualified improvement property placed in service after December 31, 2017. The CARES Act is not expected to have a material impact on the Company’s financial results.
v3.20.1
Legal Matters
 6 Months Ended
Mar. 31, 2020
Legal Matters [Abstract]  
Legal Matters
Note 14—Legal Matters
The Company is party to various legal and regulatory proceedings. Some of these proceedings involve complex claims that are subject to substantial uncertainties and unascertainable damages. Accordingly, except as disclosed, the Company has not established reserves or ranges of possible loss related to these proceedings, as at this time in the proceedings, the matters do not relate to a probable loss and/or the amount or range of losses are not reasonably estimable. Although the Company believes that it has strong defenses for the litigation and regulatory proceedings described below, it could, in the future, incur judgments or fines or enter into settlements of claims that could have a material adverse effect on the Company’s financial position, results of operations or cash flows. From time to time, the Company may engage in settlement discussions or mediations with respect to one or more of its outstanding litigation matters, either on its own behalf or collectively with other parties.
The litigation accrual is an estimate and is based on management’s understanding of its litigation profile, the specifics of each case, advice of counsel to the extent appropriate and management’s best estimate of incurred loss as of the balance sheet date.
The following table summarizes the activity related to accrued litigation:
 
Six Months Ended
March 31,
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
1,203

 
$
1,434

Provision for uncovered legal matters
7

 
35

Provision for covered legal matters
7

 
159

Reestablishment of prior accrual related to interchange multidistrict litigation
467

 
—

Payments for legal matters
(416
)
 
(714
)
Balance at end of period
$
1,268

 
$
914


Accrual Summary—U.S. Covered Litigation
Visa Inc., Visa U.S.A. and Visa International are parties to certain legal proceedings that are covered by the U.S. retrospective responsibility plan, which the Company refers to as the U.S. covered litigation. See further discussion below under U.S. Covered Litigation and Note 5—U.S. and Europe Retrospective Responsibility Plans. An accrual for the U.S. covered litigation and a charge to the litigation provision are recorded when a loss is deemed to be probable and reasonably estimable. In making this determination, the Company evaluates available information, including but not limited to actions taken by the litigation committee. The total accrual related to the U.S. covered litigation could be either higher or lower than the escrow account balance.
The following table summarizes the accrual activity related to U.S. covered litigation:
 
Six Months Ended
March 31,
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
1,198

 
$
1,428

Reestablishment of prior accrual related to interchange multidistrict litigation
467

 
—

Payments for U.S. covered litigation
(414
)
 
(600
)
Balance at end of period
$
1,251

 
$
828


In fiscal 2019, the Company paid $600 million from its litigation escrow account into a settlement fund established pursuant to the Amended Settlement Agreement with the Damages Class plaintiffs in the Interchange Multidistrict Litigation. Under the Amended Settlement Agreement, if class members opt out of the Damages Class, the defendants are entitled to receive takedown payments of up to $700 million (up to $467 million for Visa), based on the percentage of payment card sales volume attributable to merchants who have chosen to opt out. On December 13, 2019, the district court entered a final judgment order approving the Amended Settlement Agreement with the Damages Class plaintiffs. A takedown payment of approximately $467 million was received on December 27, 2019, and deposited into the Company’s litigation escrow account. The deposit into the litigation escrow account and reestablishment of a prior accrual to address opt-out claims was recorded during the six months ended March 31, 2020. See further discussion below under U.S. Covered Litigation.
Accrual Summary—VE Territory Covered Litigation
Visa Inc., Visa International and Visa Europe are parties to certain legal proceedings that are covered by the Europe retrospective responsibility plan. Unlike the U.S. retrospective responsibility plan, the Europe retrospective responsibility plan does not have an escrow account that is used to fund settlements or judgments. The Company is entitled to recover VE territory covered losses through periodic adjustments to the conversion rates applicable to the UK&I preferred stock and Europe preferred stock. An accrual for the VE territory covered losses and a reduction to stockholders’ equity will be recorded when the loss is deemed to be probable and reasonably estimable. See further discussion below under VE Territory Covered Litigation and Note 5—U.S. and Europe Retrospective Responsibility Plans.
The following table summarizes the accrual activity related to VE territory covered litigation:
 
Six Months Ended
March 31,
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
5

 
$
—

Provision for VE territory covered litigation
7

 
159

Payments for VE territory covered litigation
(1
)
 
(98
)
Balance at end of period
$
11

 
$
61


U.S. Covered Litigation
Interchange Multidistrict Litigation (MDL) – Putative Class Actions
On November 20, 2019, the district court denied the bank defendants’ motion to dismiss the claims brought against them by the putative Injunctive Relief Class.
On December 13, 2019, the district court granted final approval of the 2018 Amended Settlement Agreement relating to claims by the Damages Class, which was subsequently appealed.
Interchange Multidistrict Litigation (MDL) - Individual Merchant Actions
Visa has reached settlements with a number of merchants representing approximately 30% of the Visa-branded payment card sales volume of merchants who opted out of the Amended Settlement Agreement with the Damages Class plaintiffs.

VE Territory Covered Litigation
Europe Merchant Litigation
Since July 2013, in excess of 500 Merchants (the capitalized term “Merchant,” when used in this section, means a merchant together with subsidiary/affiliate companies that are party to the same claim) have commenced proceedings against Visa Europe, Visa Inc. and other Visa subsidiaries in the UK, Germany, Belgium and Poland primarily relating to interchange rates in Europe and in some cases relating to fees charged by Visa and certain Visa rules. As of the filing date, Visa Europe, Visa Inc. and other Visa subsidiaries have settled the claims asserted by over 100 Merchants, leaving more than 400 Merchants with outstanding claims. In addition, over 30 additional Merchants have threatened to commence similar proceedings. Standstill agreements have been entered into with respect to some of those threatened Merchant claims, several of which have been settled.
Other Litigation
Canadian Merchant Litigation
Between August 2019 and January 2020, the Courts of Appeal in British Columbia, Quebec, Ontario and Saskatchewan rejected the appeals filed by Wal-Mart Canada and Home Depot of Canada Inc. In January 2020, Wal-Mart Canada and Home Depot of Canada Inc. filed applications to appeal the decisions of the British Columbia, Quebec and Ontario courts to the Supreme Court of Canada and those applications were denied on March 26, 2020. Wal-Mart Canada and Home Depot of Canada Inc. also filed an application seeking the Supreme Court’s review of the Saskatchewan court's decision. The application and an appeal to the Alberta Court of Appeal remain pending.
Nuts for Candy
On December 31, 2019, plaintiff filed a motion to dismiss and for attorneys’ fees and costs based on the settlement reached between the parties and the grant of final approval of the 2018 Amended Settlement Agreement as discussed above in Interchange Multidistrict Litigation (MDL) - Putative Class Actions.
On February 25, 2020, the court granted plaintiff’s motion to dismiss and for attorneys’ fees and costs. The case has been dismissed with prejudice.
Euronet Litigation
On December 13, 2019, Euronet 360 Finance Limited, Euronet Polska Spolka z.o.o. and Euronet Services spol. s.r.o. (“Euronet”) served a claim in the UK alleging that certain rules affecting ATM access fees in Poland, the Czech Republic and Greece by Visa Inc. and Mastercard Incorporated, and certain of their subsidiaries, breach various competition laws. Euronet seeks damages, costs, and injunctive relief to prevent the defendants from enforcing the aforementioned rules.
v3.20.1
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Consolidation and basis of presentation
Consolidation and basis of presentation. The accompanying unaudited consolidated financial statements include the accounts of Visa and its consolidated entities and are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company consolidates its majority-owned and controlled entities, including variable interest entities (“VIEs”) for which the Company is the primary beneficiary. The Company’s investments in VIEs have not been material to its unaudited consolidated financial statements as of and for the periods presented. All significant intercompany accounts and transactions are eliminated in consolidation.
The accompanying unaudited consolidated financial statements are presented in accordance with the U.S. Securities and Exchange Commission (“SEC”) requirements for Quarterly Reports on Form 10-Q and, consequently, do not include all of the annual disclosures required by U.S. GAAP. Reference should be made to the Visa Annual Report on Form 10-K for the year ended September 30, 2019 for additional disclosures, including a summary of the Company’s significant accounting policies.
In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented.
Use of estimates
Use of estimates. The preparation of accompanying unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates may change, as new events occur and additional information is obtained, and will be recognized in the consolidated financial statements in the period in which such changes occur. Future actual results could differ materially from these estimates. The worldwide spread of coronavirus (“COVID-19”) has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict.
Recently issued and adopted accounting pronouncements
Recently Issued and Adopted Accounting Pronouncements.
In February 2016, the FASB issued ASU 2016-02, which requires the recognition of lease assets and lease liabilities arising from operating leases on the balance sheet. Subsequently, the FASB also issued a series of amendments to this new leases standard that address the transition methods available and clarify the guidance for lessor costs and other aspects of the new leases standard. The Company adopted the standard effective October 1, 2019 using the modified retrospective transition method with comparative periods continuing to be reported using the prior leases standard. The Company elected to apply the package of practical expedients permitted under the transition guidance, allowing the Company to carry forward the historical assessment of whether a contract was or contains a lease, lease classification and capitalization of initial direct costs. The adoption did not have a material impact on the consolidated financial statements.
In accordance with ASU 2016-02, the Company determines if an arrangement is a lease at its inception. Right-of-use (“ROU”) assets, and corresponding lease liabilities, are recognized at the commencement date based on the
present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As a majority of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company does not record a ROU asset and corresponding liability for leases with terms of 12 months or less.
The Company does not include renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company does not combine lease payments with non-lease components for any of its leases. Operating leases are recorded as ROU assets, which are included in other assets. The current portion of lease liabilities are included in accrued liabilities and the long-term portion is included in other liabilities on the consolidated balance sheet. The Company’s lease cost consists of amounts recognized under lease agreements in the results of operations adjusted for impairment and sublease income.
In February 2018, the FASB issued ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S. federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Company adopted the ASU effective October 1, 2019. The adoption did not have a material impact on the consolidated financial statements.
In December 2019, the FASB issued ASU 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. The amendments in the ASU are effective for the Company on October 1, 2021. The Company does not plan to early adopt the ASU at this time. The adoption is not expected to have a material impact on the consolidated financial statements.
In January 2020, the FASB issued ASU 2020-01, which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the fair value measurement alternative. The amendments in the ASU are effective for the Company on October 1, 2021. The adoption is not expected to have a material impact on the consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform. The amendments in the ASU are effective for the Company upon issuance through December 31, 2022. The Company is evaluating the effect ASU 2020-04 will have on its consolidated financial statements.
v3.20.1
Revenues (Tables)
 6 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue The following tables disaggregate the Company’s net revenues by revenue category and by geography for the three and six months ended March 31, 2020 and 2019:
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
(in millions)
Service revenues
$
2,623

 
$
2,417

 
$
5,178

 
$
4,759

Data processing revenues
2,711

 
2,432

 
5,575

 
4,902

International transaction revenues
1,833

 
1,796

 
3,851

 
3,647

Other revenues
392

 
327

 
757

 
626

Client incentives
(1,705
)
 
(1,478
)
 
(3,453
)
 
(2,934
)
Net revenues
$
5,854

 
$
5,494

 
$
11,908

 
$
11,000

 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
(in millions)
U.S.
$
2,650

 
$
2,479

 
$
5,367

 
$
4,987

International
3,204

 
3,015

 
6,541

 
6,013

Net revenues
$
5,854

 
$
5,494

 
$
11,908

 
$
11,000
v3.20.1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Tables)
 6 Months Ended
Mar. 31, 2020
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]  
Schedule of Cash and Cash Equivalents
The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:
 
March 31,
2020
 
September 30,
2019
 
(in millions)
Cash and cash equivalents
$
9,740

 
$
7,838

Restricted cash and restricted cash equivalents:
 
 
 
U.S. litigation escrow
1,264

 
1,205

Customer collateral
1,698

 
1,648

Prepaid expenses and other current assets
114

 
141

Cash, cash equivalents, restricted cash and restricted cash equivalents
$
12,816

 
$
10,832
v3.20.1
U.S. and Europe Retrospective Responsibility Plan (Tables)
 6 Months Ended
Mar. 31, 2020
Retrospective Responsibility Plan [Abstract]  
Changes in the U.S. litigation escrow account
The following table sets forth the changes in the restricted cash equivalents—U.S. litigation escrow account:
 
Six Months Ended
March 31,
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
1,205

 
$
1,491

Return of takedown payment to the litigation escrow account
467

 
—

Payments to class plaintiffs’ settlement fund(1)
—

 
(600
)
Payments to opt-out merchants(1) and interest earned on escrow funds
(408
)
 
8

Balance at end of period
$
1,264

 
$
899

(1) 
These payments are associated with the Interchange Multidistrict Litigation. See Note 14—Legal Matters.
Preferred Stock As-Converted Value and Book Value
The following table sets forth the as-converted value of the preferred stock available to recover VE territory covered losses compared to the book value of preferred shares recorded in stockholders’ equity within the Company’s consolidated balance sheets as of March 31, 2020 and September 30, 2019:
 
March 31, 2020
 
September 30, 2019
 
As-Converted Value of Preferred Stock(1),(2)
 
Book Value of Preferred Stock(1)
 
As-Converted Value of Preferred Stock(1),(3)
 
Book Value of Preferred Stock(1)
 
(in millions)
UK&I preferred stock
$
5,170

 
$
2,285

 
$
5,519

 
$
2,285

Europe preferred stock
7,062

 
3,177

 
7,539

 
3,177

Total
12,232

 
5,462

 
13,058

 
5,462

Less: right to recover for covered losses
(184
)
 
(184
)
 
(171
)
 
(171
)
Total recovery for covered losses available
$
12,048

 
$
5,278

 
$
12,887

 
$
5,291

(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted and book values are based on unrounded numbers.
(2) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of March 31, 2020; (b) 12.936 and 13.884, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of March 31, 2020, respectively; and (c) $161.12, Visa’s class A common stock closing stock price as of March 31, 2020.
(3) 
The as-converted value of preferred stock is calculated as the product of: (a) 2 million and 3 million shares of the UK&I and Europe preferred stock outstanding, respectively, as of September 30, 2019; (b) 12.936 and 13.884, the class A common stock conversion rate applicable to the UK&I and Europe preferred stock as of September 30, 2019, respectively; and (c) $172.01, Visa’s class A common stock closing stock price as of September 30, 2019.
v3.20.1
Fair Value Measurements and Investments (Tables)
 6 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
Fair Value Measurements
Using Inputs Considered as
 
Level 1
 
Level 2
 
March 31,
2020
 
September 30,
2019
 
March 31,
2020
 
September 30,
2019
 
(in millions)
Assets
 
 
 
 
 
 
 
Cash equivalents and restricted cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
8,864

 
$
6,494

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
$
—

 
$
150

Investment securities:
 
 
 
 
 
 
 
Marketable equity securities
121

 
126

 
 
 
 
U.S. government-sponsored debt securities
 
 
 
 
3,149

 
5,592

U.S. Treasury securities
205

 
675

 
 
 
 
Other current and non-current assets:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
768

 
437

Total
$
9,190

 
$
7,295

 
$
3,917

 
$
6,179

Liabilities
 
 
 
 
 
 
 
Accrued compensation and benefits:
 
 
 
 
 
 
 
Deferred compensation liability
$
111

 
$
113

 
 
 
 
Accrued and other liabilities:
 
 
 
 
 
 
 
Derivative instruments
 
 
 
 
$
272

 
$
52

Total
$
111

 
$
113

 
$
272

 
$
52
Schedule of Non-Marketable Equity Securities The following table summarizes the total carrying value of the Company’s non-marketable equity securities held as of March 31, 2020 including cumulative unrealized gains and losses:
 
March 31, 2020
 
(in millions)
Initial cost basis
$
611

Upward adjustments
119

Downward adjustments (including impairment)
(5
)
Carrying amount, end of period
$
725
Schedule of Gains and Losses on Marketable and Non-Marketable Equity Securities
Gains and losses on the Company’s equity securities are summarized below.
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
(in millions)
Net gain (loss) on equity securities sold during the period
$
1

 
$
15

 
$
5

 
$
15

Unrealized gain (loss) on equity securities held as of the end of the period
(23
)
 
79

 
(9
)
 
59

Total gain (loss) recognized in non-operating income (expense), net
$
(22
)
 
$
94

 
$
(4
)
 
$
74
v3.20.1
Leases (Tables)
 6 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Schedule of Present Value of Future Minimum Lease Payments
At March 31, 2020, the present value of future minimum lease payments was as follows:
 
 
March 31, 2020
 
 
(in millions)
Remainder of 2020
 
$
48

2021
 
112

2022
 
96

2023
 
89

2024
 
76

Thereafter
 
214

Total undiscounted lease payments
 
635

Less: imputed interest
 
(48
)
Present value of lease liabilities
 
$
587
v3.20.1
Debt (Tables)
 6 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Debt
The Company had outstanding debt as follows:
 
March 31,
2020
 
September 30,
2019
 
Effective Interest Rate(1)
 
(in millions, except percentages)
Commercial paper
$
1,002

 
$
—

 
1.55
%
2.20% Senior Notes due December 2020
3,000

 
3,000

 
2.30
%
2.15% Senior Notes due September 2022
1,000

 
1,000

 
2.30
%
2.80% Senior Notes due December 2022
2,250

 
2,250

 
2.89
%
3.15% Senior Notes due December 2025
4,000

 
4,000

 
3.26
%
2.75% Senior Notes due September 2027
750

 
750

 
2.91
%
4.15% Senior Notes due December 2035
1,500

 
1,500

 
4.23
%
4.30% Senior Notes due December 2045
3,500

 
3,500

 
4.37
%
3.65% Senior Notes due September 2047
750

 
750

 
3.73
%
Total debt
17,752

 
16,750

 
 
Unamortized discounts and debt issuance costs
(103
)
 
(108
)
 
 
Hedge accounting fair value adjustments(2)
243

 
87

 
 
Total carrying value of debt
$
17,892

 
$
16,729

 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
Current maturities of debt
$
3,999

 
$
—

 
 
Long-term debt
13,893

 
16,729

 
 
Total carrying value of debt
$
17,892

 
$
16,729

 
 

(1) 
Effective interest rates disclosed do not reflect hedge accounting adjustments.
(2) 
Represents the change in fair value of interest rate swap agreements entered into on a portion of certain outstanding senior notes.
v3.20.1
Settlement Guarantee Management (Tables)
 6 Months Ended
Mar. 31, 2020
Settlement Guarantee Management [Abstract]  
Schedule of Customer Collateral
The Company maintains and regularly reviews global settlement risk policies and procedures to manage settlement exposure, which may require clients to post collateral if certain credit standards are not met. At March 31, 2020 and September 30, 2019, the Company held collateral as follows:

March 31,
2020
 
September 30,
2019
 
(in millions)
Restricted cash and restricted cash equivalents
$
1,698

 
$
1,648

Pledged securities at market value
235

 
259

Letters of credit
1,300

 
1,293

Guarantees
508

 
477

Total
$
3,741

 
$
3,677
v3.20.1
Stockholders' Equity (Tables)
 6 Months Ended
Mar. 31, 2020
Stockholders' Equity Note [Abstract]  
Schedule of Stock by Class
As-converted class A common stock. The following table presents the number of shares of each series and class of stock and the number of shares of class A common stock on an as-converted basis:
 
March 31, 2020
 
September 30, 2019
 
Shares
Outstanding
 
Conversion Rate Into 
Class A
Common Stock
 
As-converted Class A
Common
Stock(1)
 
Shares
Outstanding
 
Conversion Rate Into
Class A
Common Stock
 
As-converted Class A
Common
Stock(1)
 
(in millions, except conversion rates)
UK&I preferred stock
2

 
12.9360

 
32

 
2

 
12.9360

 
32

Europe preferred stock
3

 
13.8840

 
44

 
3

 
13.8840

 
44

Class A common stock(2)
1,693

 
—

 
1,693

 
1,718

 
—

 
1,718

Class B common stock
245

 
1.6228

(3) 
398

 
245

 
1.6228

(3) 
398

Class C common stock
11

 
4.0000

 
43

 
11

 
4.0000

 
45

Total
 
 
 
 
2,210

 
 
 
 
 
2,237


(1) 
Figures in the table may not recalculate exactly due to rounding. As-converted class A common stock is calculated based on unrounded numbers.
(2) 
Class A common stock shares outstanding reflect repurchases that settled on or before March 31, 2020 and September 30, 2019.
(3) 
The class B to class A common stock conversion rate is presented on a rounded basis. Conversion calculations for dividend payments are based on a conversion rate rounded to the tenth decimal.
Share Repurchase Program Disclosure
Common stock repurchases. The following table presents share repurchases in the open market for the following periods:
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2020
 
2019
 
2020
 
2019
 
(in millions, except per share data)
Shares repurchased in the open market(1)
18

 
14

 
31

 
31

Average repurchase price per share(2)
$
181.11

 
$
144.94

 
$
180.31

 
$
141.08

Total cost(2)
$
3,133

 
$
1,938

 
$
5,503

 
$
4,331

(1)  
Shares repurchased in the open market reflect repurchases that settled during the three and six months ended March 31, 2020 and 2019. All shares repurchased in the open market have been retired and constitute authorized but unissued shares.
(2) 
Figures in the table may not recalculate exactly due to rounding. Average repurchase price per share and total cost is calculated based on unrounded numbers.
v3.20.1
Earnings Per Share (Tables)
 6 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table presents earnings per share for the three months ended March 31, 2020:
 
Basic Earnings Per Share
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
Class A common stock
$
2,360

 
1,703

 
$
1.39

 
$
3,084

 
2,228

(3) 
$
1.38

Class B common stock
552

 
245

 
$
2.25

 
$
551

 
245

 
$
2.25

Class C common stock
61

 
11

 
$
5.54

 
$
60

 
11

 
$
5.54

Participating securities(4)
111

 
Not presented

 
Not presented

 
$
111

 
Not presented

 
Not presented

Net income
$
3,084

 
 
 
 
 
 
 
 
 
 
The following table presents earnings per share for the six months ended March 31, 2020:
 
Basic Earnings Per Share
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
Class A common stock
$
4,866

 
1,708

 
$
2.85

 
$
6,356

 
2,234

(3) 
$
2.85

Class B common stock
1,135

 
245

 
$
4.62

 
$
1,134

 
245

 
$
4.62

Class C common stock
126

 
11

 
$
11.40

 
$
125

 
11

 
$
11.38

Participating securities(4)
229

 
Not presented

 
Not presented

 
$
229

 
Not presented

 
Not presented

Net income
$
6,356

 
 
 
 
 
 
 
 
 
 
The following table presents earnings per share for the three months ended March 31, 2019:
 
Basic Earnings Per Share
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
Class A common stock
$
2,287

 
1,748

 
$
1.31

 
$
2,977

 
2,279

(3) 
$
1.31

Class B common stock
523

 
245

 
$
2.13

 
$
523

 
245

 
$
2.13

Class C common stock
61

 
12

 
$
5.23

 
$
61

 
12

 
$
5.23

Participating securities(4)
106

 
Not presented

 
Not presented

 
$
106

 
Not presented

 
Not presented

Net income
$
2,977

 
 
 
 
 
 
 
 
 
 
The following table presents earnings per share for the six months ended March 31, 2019:
 
Basic Earnings Per Share
 
Diluted Earnings Per Share
 
(in millions, except per share data)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
 
Income
Allocation
(A)(1)
 
Weighted-
Average
Shares
Outstanding (B)
 
Earnings per
Share =
(A)/(B)(2)
Class A common stock
$
4,577

 
1,754

 
$
2.61

 
$
5,954

 
2,285

(3) 
$
2.61

Class B common stock
1,044

 
245

 
$
4.25

 
$
1,043

 
245

 
$
4.25

Class C common stock
122

 
12

 
$
10.44

 
$
122

 
12

 
$
10.42

Participating securities(4)
211

 
Not presented

 
Not presented

 
$
211

 
Not presented

 
Not presented

Net income
$
5,954

 
 
 
 
 
 
 
 
 
 

(1) 
Net income is allocated based on proportional ownership on an as-converted basis. The weighted-average number of shares of as-converted class B common stock used in the income allocation was 398 million for the three and six months ended March 31, 2020 and 400 million for the three and six months ended March 31, 2019. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 44 million for the three and six months ended March 31, 2020 and 47 million for the three and six months ended March 31, 2019. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three and six months ended March 31, 2020 and 2019, and 44 million of as-converted Europe preferred stock for the three and six months ended March 31, 2020 and 2019.
(2) 
Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
(3) 
Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes common stock equivalents of 3 million for the three and six months ended March 31, 2020 and 2019, because their effect would have been dilutive. The computation excludes common stock equivalents of 1 million and 2 million for the three and six months ended March 31, 2020, respectively, and 1 million for the three and six months ended March 31, 2019, because their effect would have been anti-dilutive.
(4) 
Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the UK&I and Europe preferred stock and restricted stock units. Participating securities’ income is allocated based on the weighted-average number of shares of as-converted stock.
v3.20.1
Share-based Compensation (Tables)
 6 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
The Company granted the following equity awards to employees and non-employee directors under the 2007 Equity Incentive Compensation Plan, or the EIP, during the six months ended March 31, 2020:
 
Granted
 
Weighted-Average
Grant Date Fair
Value
 
Weighted-Average
Exercise Price
Non-qualified stock options
1,247,982

 
$
29.37

 
$
182.50

Restricted stock units
2,264,886

 
$
183.27

 
 
Performance-based shares(1)
470,128

 
$
211.08

 
 
(1)  
Represents the maximum number of performance-based shares which could be earned.
v3.20.1
Legal Matters (Tables)
 6 Months Ended
Mar. 31, 2020
Legal Matters [Abstract]  
Schedule of Loss Contingencies by Contingency
The following table summarizes the accrual activity related to U.S. covered litigation:
 
Six Months Ended
March 31,
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
1,198

 
$
1,428

Reestablishment of prior accrual related to interchange multidistrict litigation
467

 
—

Payments for U.S. covered litigation
(414
)
 
(600
)
Balance at end of period
$
1,251

 
$
828


The following table summarizes the accrual activity related to VE territory covered litigation:
 
Six Months Ended
March 31,
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
5

 
$
—

Provision for VE territory covered litigation
7

 
159

Payments for VE territory covered litigation
(1
)
 
(98
)
Balance at end of period
$
11

 
$
61


The following table summarizes the activity related to accrued litigation:
 
Six Months Ended
March 31,
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
1,203

 
$
1,434

Provision for uncovered legal matters
7

 
35

Provision for covered legal matters
7

 
159

Reestablishment of prior accrual related to interchange multidistrict litigation
467

 
—

Payments for legal matters
(416
)
 
(714
)
Balance at end of period
$
1,268

 
$
914
v3.20.1
Summary of Significant Accounting Policies (Details)
Mar. 31, 2020
country
Accounting Policies [Abstract]  
Number of countries in which entity operates (more than) 200
v3.20.1
Acquisitions (Details) - Plaid, Inc.
$ in Billions
Jan. 13, 2020
USD ($)
Business Acquisition [Line Items]  
Total consideration $ 5.3
Total consideration, cash 4.9
Total consideration, restricted stock units and stock options $ 0.4
v3.20.1
Revenues (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Disaggregation of Revenue [Line Items]        
Net revenues $ 5,854 $ 5,494 $ 11,908 $ 11,000
U.S.        
Disaggregation of Revenue [Line Items]        
Net revenues 2,650 2,479 5,367 4,987
International        
Disaggregation of Revenue [Line Items]        
Net revenues 3,204 3,015 6,541 6,013
Service revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 2,623 2,417 5,178 4,759
Data processing revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 2,711 2,432 5,575 4,902
International transaction revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 1,833 1,796 3,851 3,647
Other revenues        
Disaggregation of Revenue [Line Items]        
Net revenues 392 327 757 626
Client incentives        
Disaggregation of Revenue [Line Items]        
Net revenues $ (1,705) $ (1,478) $ (3,453) $ (2,934)
v3.20.1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Sep. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Restricted Cash and Cash Equivalents Items [Line Items]        
Cash and cash equivalents $ 9,740 $ 7,838    
Cash, cash equivalents, restricted cash and restricted cash equivalents 12,816 10,832 $ 10,282 $ 10,977
U.S. litigation escrow        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents 1,264 1,205    
Customer collateral        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents 1,698 1,648    
Prepaid expenses and other current assets        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents $ 114 $ 141    
v3.20.1
U.S. and Europe Retrospective Responsibility Plan - Additional Details (Details)
€ in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Dec. 27, 2019
USD ($)
Mar. 31, 2020
EUR (€)
Mar. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Retrospective Responsibility Plan [Abstract]        
Return of takedown payment to the litigation escrow account | $ $ 467   $ 467 $ 0
VE covered loss, maximum amount of loss to allow adjustment of conversion rate during six-month period | €   € 20    
v3.20.1
U.S. and Europe Retrospective Responsibility Plan - Changes in the U.S. Litigation Escrow Account (Detail) - USD ($)
$ in Millions
 6 Months Ended
Dec. 27, 2019
Mar. 31, 2020
Mar. 31, 2019
Escrow Account [Roll Forward]      
Beginning balance   $ 1,205 $ 1,491
Return of takedown payment to the litigation escrow account $ 467 467 0
Payments to class plaintiffs’ settlement fund   0 (600)
Ending balance   1,264 899
Interest Income | Opt-out Merchants      
Escrow Account [Roll Forward]      
Payments to opt-out merchants and interest earned on escrow funds   $ (408) $ 8
v3.20.1
U.S. and Europe Retrospective Responsibility Plan - Changes in Preferred Stock and Right to Recover Covered Losses (Details)
$ / shares in Units, shares in Millions, $ in Millions
 6 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
$ / shares
shares
Sep. 30, 2019
USD ($)
$ / shares
shares
Class of Stock [Line Items]    
Preferred Stock, As-Converted Value $ 12,232 $ 13,058
Preferred Stock, Book Value, Total 5,462 5,462
Less: right to recover for covered losses (184) (171)
Preferred Stock, As-Converted Value, Total Recovery for Covered Losses Available 12,048 12,887
Preferred Stock, Book Value, Total Recovery for Covered Losses Available $ 5,278 $ 5,291
Share price (in dollars per share) | $ / shares $ 161.12 $ 172.01
UK&I preferred stock    
Class of Stock [Line Items]    
Preferred Stock, As-Converted Value $ 5,170 $ 5,519
Preferred Stock, Book Value $ 2,285 $ 2,285
Preferred stock, shares outstanding (in shares) | shares 2 2
Preferred stock, conversion rate 12.936 12.936
Europe preferred stock    
Class of Stock [Line Items]    
Preferred Stock, As-Converted Value $ 7,062 $ 7,539
Preferred Stock, Book Value $ 3,177 $ 3,177
Preferred stock, shares outstanding (in shares) | shares 3 3
Preferred stock, conversion rate 13.884 13.884
v3.20.1
Fair Value Measurements and Investments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Sep. 30, 2019
Assets    
U.S. securities $ 3,400 $ 6,300
Level 1 | Fair Value, Measurements, Recurring    
Assets    
Marketable equity securities 121 126
Total 9,190 7,295
Liabilities    
Deferred compensation liability 111 113
Total 111 113
Level 1 | U.S. Treasury securities | Fair Value, Measurements, Recurring    
Assets    
U.S. securities 205 675
Level 2 | Fair Value, Measurements, Recurring    
Assets    
Derivative instruments 768 437
Total 3,917 6,179
Liabilities    
Derivative instruments 272 52
Total 272 52
Level 2 | U.S. government-sponsored debt securities | Fair Value, Measurements, Recurring    
Assets    
U.S. securities 3,149 5,592
Money market funds | Level 1 | Fair Value, Measurements, Recurring    
Assets    
Cash equivalents and restricted cash equivalents: 8,864 6,494
U.S. government-sponsored debt securities | Level 2 | Fair Value, Measurements, Recurring    
Assets    
Cash equivalents and restricted cash equivalents: $ 0 $ 150
v3.20.1
Fair Value Measurements and Investments - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Feb. 01, 2020
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Sep. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Transfers between Level 1 and Level 2 assets   $ 0   $ 0    
U.S. securities   3,400,000,000   3,400,000,000   $ 6,300,000,000
Upward adjustments   0   9,000,000    
Downward adjustments       0    
Impairment charges of non-marketable equity securities   0 $ 0 0 $ 0  
Impairment of indefinite-lived intangible assets and goodwill $ 0          
Carrying value of long-term debt   $ 17,892,000,000   $ 17,892,000,000   16,729,000,000
Minimum            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Available-for-sale investment securities, stated maturities   1 year   1 year    
Maximum            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Available-for-sale investment securities, stated maturities   5 years   5 years    
Senior Notes            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Carrying value of long-term debt   $ 16,900,000,000   $ 16,900,000,000   16,700,000,000
Estimated Fair Value | Senior Notes            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Estimated fair value of long-term deb   $ 18,600,000,000   $ 18,600,000,000   $ 18,400,000,000
v3.20.1
Fair Value Measurements and Investments - Schedule of Non-Marketable Equity Securities (Details)
$ in Millions
Mar. 31, 2020
USD ($)
Fair Value Disclosures [Abstract]  
Initial cost basis $ 611
Upward adjustments 119
Downward adjustments (including impairment) (5)
Carrying amount, end of period $ 725
v3.20.1
Fair Value Measurements and Investments - Schedule of Gains and Losses on Marketable and Non-Marketable Equity Securities (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Fair Value Disclosures [Abstract]        
Net gain (loss) on equity securities sold during the period $ 1 $ 15 $ 5 $ 15
Unrealized gain (loss) on equity securities held as of the end of the period (23) 79 (9) 59
Total gain (loss) recognized in non-operating income (expense), net $ (22) $ 94 $ (4) $ 74
v3.20.1
Leases - Additional Information (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
USD ($)
Mar. 31, 2020
USD ($)
option_to_renew
Lessee, Lease, Description [Line Items]    
Operating lease cost $ 29 $ 55
Weighted average remaining lease term (in years) 7 years 7 years
Weighted average discount rate 2.28% 2.28%
Operating leases, not yet commenced, lease obligations $ 465 $ 465
Minimum    
Lessee, Lease, Description [Line Items]    
Number of renewal options | option_to_renew   1
Operating leases, non-cancellable lease terms 3 years 3 years
Maximum    
Lessee, Lease, Description [Line Items]    
Operating leases, non-cancellable lease terms 15 years 15 years
v3.20.1
Leases - Schedule of Present Value of Future Minimum Lease Payments (Details)
$ in Millions
Mar. 31, 2020
USD ($)
Leases [Abstract]  
Remainder of 2020 $ 48
2021 112
2022 96
2023 89
2024 76
Thereafter 214
Total undiscounted lease payments 635
Less: imputed interest (48)
Present value of lease liabilities $ 587
v3.20.1
Debt - Summary of Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Sep. 30, 2019
Debt Instrument [Line Items]    
Unamortized discounts and debt issuance costs $ (103) $ (108)
Hedge accounting fair value adjustments 243 87
Total carrying value of debt 17,892 16,729
Current maturities of debt 3,999 0
Long-term debt 13,893 16,729
Senior Notes    
Debt Instrument [Line Items]    
Total debt 17,752 16,750
Total carrying value of debt 16,900 16,700
Senior Notes | 2.20% Senior Notes due December 2020    
Debt Instrument [Line Items]    
Total debt $ 3,000 3,000
Effective interest rate (percent) 2.30%  
Stated interest rate 2.20%  
Senior Notes | 2.15% Senior Notes due September 2022    
Debt Instrument [Line Items]    
Total debt $ 1,000 1,000
Effective interest rate (percent) 2.30%  
Stated interest rate 2.15%  
Senior Notes | 2.80% Senior Notes due December 2022    
Debt Instrument [Line Items]    
Total debt $ 2,250 2,250
Effective interest rate (percent) 2.89%  
Stated interest rate 2.80%  
Senior Notes | 3.15% Senior Notes due December 2025    
Debt Instrument [Line Items]    
Total debt $ 4,000 4,000
Effective interest rate (percent) 3.26%  
Stated interest rate 3.15%  
Senior Notes | 2.75% Senior Notes due September 2027    
Debt Instrument [Line Items]    
Total debt $ 750 750
Effective interest rate (percent) 2.91%  
Stated interest rate 2.75%  
Senior Notes | 4.15% Senior Notes due December 2035    
Debt Instrument [Line Items]    
Total debt $ 1,500 1,500
Effective interest rate (percent) 4.23%  
Stated interest rate 4.15%  
Senior Notes | 4.30% Senior Notes due December 2045    
Debt Instrument [Line Items]    
Total debt $ 3,500 3,500
Effective interest rate (percent) 4.37%  
Stated interest rate 4.30%  
Senior Notes | 3.65% Senior Notes due September 2047    
Debt Instrument [Line Items]    
Total debt $ 750 750
Effective interest rate (percent) 3.73%  
Stated interest rate 3.65%  
Commercial Paper    
Debt Instrument [Line Items]    
Short-term Debt $ 1,002 $ 0
Effective interest rate (percent) 1.55%  
v3.20.1
Debt - Narrative (Details) - USD ($)
$ in Billions
 1 Months Ended 6 Months Ended
Apr. 30, 2020
Mar. 31, 2020
Commercial Paper    
Debt Instrument [Line Items]    
Commercial paper program, amount available   $ 3.0
Credit agreement term   397 days
Senior Notes | 2020 Notes    
Debt Instrument [Line Items]    
Stated interest rate   2.20%
Senior Notes | Subsequent Event | 2020 Notes    
Debt Instrument [Line Items]    
Proceeds from issuance of fixed-rate senior notes $ 4.0  
Senior Notes | Subsequent Event | April 2027 Notes    
Debt Instrument [Line Items]    
Stated interest rate 1.90%  
Senior Notes | Subsequent Event | 2030 Notes    
Debt Instrument [Line Items]    
Stated interest rate 2.05%  
Senior Notes | Subsequent Event | 2040 Notes    
Debt Instrument [Line Items]    
Stated interest rate 2.70%  
Senior Notes | Minimum | Subsequent Event | 2020 Notes    
Debt Instrument [Line Items]    
Credit agreement term 7 years  
Senior Notes | Maximum | Subsequent Event | 2020 Notes    
Debt Instrument [Line Items]    
Credit agreement term 20 years  
v3.20.1
Settlement Guarantee Management - Additional Information (Details)
$ in Billions
 6 Months Ended
Mar. 31, 2020
USD ($)
Settlement Guarantee Management [Abstract]  
Maximum Settlement Exposure $ 97.3
Average Daily Settlement Exposure $ 56.7
v3.20.1
Settlement Guarantee Management - Collateral (Detail) - USD ($)
$ in Millions
Mar. 31, 2020
Sep. 30, 2019
Settlement Guarantee Management [Abstract]    
Restricted cash and restricted cash equivalents $ 1,698 $ 1,648
Pledged securities at market value 235 259
Letters of credit 1,300 1,293
Guarantees 508 477
Total $ 3,741 $ 3,677
v3.20.1
Stockholders' Equity - Number of Shares of Class A Common Shares Outstanding on an As-Converted Basis (Detail)
shares in Millions
 6 Months Ended 12 Months Ended
Mar. 31, 2020
shares
Sep. 30, 2019
shares
Schedule of Common Stock as Converted [Line Items]    
As-converted Class A Common Stock (in shares) 2,210 2,237
U.K.& I preferred stock    
Schedule of Common Stock as Converted [Line Items]    
Preferred stock, shares outstanding (in shares) 2 2
Preferred stock, conversion rate into Class A Common Stock 12.936 12.936
As-converted Class A Common Stock (in shares) 32 32
Europe preferred stock    
Schedule of Common Stock as Converted [Line Items]    
Preferred stock, shares outstanding (in shares) 3 3
Preferred stock, conversion rate into Class A Common Stock 13.884 13.884
As-converted Class A Common Stock (in shares) 44 44
Class A common stock    
Schedule of Common Stock as Converted [Line Items]    
Common stock, shares outstanding (in shares) 1,693 1,718
As-converted Class A Common Stock (in shares) 1,693 1,718
Class B common stock    
Schedule of Common Stock as Converted [Line Items]    
Common stock, shares outstanding (in shares) 245 245
Common stock, conversion rate into Class A Common Stock 1.6228 1.6228
As-converted Class A Common Stock (in shares) 398 398
Class C common stock    
Schedule of Common Stock as Converted [Line Items]    
Common stock, shares outstanding (in shares) 11 11
Common stock, conversion rate into Class A Common Stock 4.0000 4.0000
As-converted Class A Common Stock (in shares) 43 45
v3.20.1
Stockholders' Equity - Share Repurchases in the Open Market (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Equity, Class of Treasury Stock [Line Items]        
Total cost $ 3,133 $ 1,938 $ 5,503 $ 4,331
Class A common stock        
Equity, Class of Treasury Stock [Line Items]        
Shares repurchased in the open market (in shares) 18 14 31 31
Average repurchase price per share (in dollars per share) $ 181.11 $ 144.94 $ 180.31 $ 141.08
Total cost $ 3,133 $ 1,938 $ 5,503 $ 4,331
v3.20.1
Stockholders' Equity - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Apr. 21, 2020
Jan. 31, 2020
Jan. 31, 2019
Stockholders Equity Note [Line Items]              
Share repurchase program           $ 9,500 $ 8,500
January 2020 share repurchase program remaining authorized funds $ 8,100   $ 8,100        
Cash dividends declared and paid, at a quarterly amount per Class A share $ 668 $ 569 $ 1,339 $ 1,141      
Subsequent Event | Class A common stock              
Stockholders Equity Note [Line Items]              
Quarterly cash dividend (in dollars per share)         $ 0.30    
v3.20.1
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Net income $ 3,084 $ 2,977 $ 6,356 $ 5,954
Class A common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic $ 2,360 $ 2,287 $ 4,866 $ 4,577
Weighted- Average Shares Outstanding - Basic (in shares) 1,703 1,748 1,708 1,754
Earnings per Share - Basic (in dollars per share) $ 1.39 $ 1.31 $ 2.85 $ 2.61
Income Allocation - Diluted $ 3,084 $ 2,977 $ 6,356 $ 5,954
Weighted- Average Shares Outstanding - Diluted (in shares) 2,228 2,279 2,234 2,285
Earnings per Share - Diluted (in dollars per share) $ 1.38 $ 1.31 $ 2.85 $ 2.61
Class B common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic $ 552 $ 523 $ 1,135 $ 1,044
Weighted- Average Shares Outstanding - Basic (in shares) 245 245 245 245
Earnings per Share - Basic (in dollars per share) $ 2.25 $ 2.13 $ 4.62 $ 4.25
Income Allocation - Diluted $ 551 $ 523 $ 1,134 $ 1,043
Weighted- Average Shares Outstanding - Diluted (in shares) 245 245 245 245
Earnings per Share - Diluted (in dollars per share) $ 2.25 $ 2.13 $ 4.62 $ 4.25
Class C common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic $ 61 $ 61 $ 126 $ 122
Weighted- Average Shares Outstanding - Basic (in shares) 11 12 11 12
Earnings per Share - Basic (in dollars per share) $ 5.54 $ 5.23 $ 11.40 $ 10.44
Income Allocation - Diluted $ 60 $ 61 $ 125 $ 122
Weighted- Average Shares Outstanding - Diluted (in shares) 11 12 11 12
Earnings per Share - Diluted (in dollars per share) $ 5.54 $ 5.23 $ 11.38 $ 10.42
Participating securities        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Income Allocation - Basic $ 111 $ 106 $ 229 $ 211
Income Allocation - Diluted $ 111 $ 106 $ 229 $ 211
v3.20.1
Earnings Per Share - Additional Information (Detail) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Common stock equivalents included in the computation of diluted shares outstanding (in shares) 3 3 3 3
Antidilutive securities excluded from computation of earnings per share (in shares) 1 1 2 1
Class B common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation (in shares) 398 400 398 400
Class C common stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation (in shares) 44 47 44 47
UK&I preferred stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation (in shares) 32 32 32 32
Europe preferred stock        
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]        
Weighted-average as-converted common stock used in income allocation (in shares) 44 44 44 44
v3.20.1
Share-based Compensation - Awards Granted to Company Employees and Non-employee Directors Under the 2007 Equity Incentive Compensation Plan (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Non-qualified stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     1,247,982  
Weighted-Average Grant Date Fair Value (in dollars per share)     $ 29.37  
Weighted-Average Exercise Price (in USD per share)     $ 182.50  
Restricted stock units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     2,264,886  
Weighted-Average Grant Date Fair Value (in dollars per share)     $ 183.27  
Performance-bases shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     470,128  
Weighted-Average Grant Date Fair Value (in dollars per share)     $ 211.08  
Equity Incentive Compensation Plan, 2007        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation cost $ 93 $ 106 $ 204 $ 201
v3.20.1
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Income Tax Disclosure [Abstract]        
Effective income tax rate reconciliation, percent 19.00% 19.00% 19.00% 19.00%
Increase in unrecognized tax benefits $ 112   $ 175  
Effective income tax rate reconciliation Unrecognized Tax Benefits that would Favorably Impact Effective Tax Rate $ 26   $ 39  
v3.20.1
Legal Matters - Schedule of Accrued Litigation for Both Covered and Non-Covered Litigation (Detail) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Sep. 30, 2019
Loss Contingency Accrual [Roll Forward]      
Balance at beginning of period $ 1,203 $ 1,434 $ 1,434
Provision for legal matters 7 159  
Balance at end of period 1,268 914 1,203
U.S. Covered Litigation      
Loss Contingency Accrual [Roll Forward]      
Balance at beginning of period 1,198 1,428 1,428
Balance at end of period 1,251 828 1,198
VE Territory Covered Litigation      
Loss Contingency Accrual [Roll Forward]      
Balance at beginning of period 5 0 0
Provision for legal matters 7 159  
Balance at end of period 11 61 $ 5
Interchange Multidistrict Litigation      
Loss Contingency Accrual [Roll Forward]      
Provision for legal matters 467 0  
Interchange Multidistrict Litigation | U.S. Covered Litigation      
Loss Contingency Accrual [Roll Forward]      
Provision for legal matters 467 0  
Unsettled      
Loss Contingency Accrual [Roll Forward]      
Provision for legal matters 7 35  
Settled Litigation      
Loss Contingency Accrual [Roll Forward]      
Payments for legal matters (416) (714)  
Settled Litigation | U.S. Covered Litigation      
Loss Contingency Accrual [Roll Forward]      
Payments for legal matters (414) (600)  
Settled Litigation | VE Territory Covered Litigation      
Loss Contingency Accrual [Roll Forward]      
Payments for legal matters $ (1) $ (98)  
v3.20.1
Legal Matters - Additional Information (Details)
$ in Millions
 6 Months Ended 12 Months Ended 82 Months Ended
Dec. 27, 2019
USD ($)
Mar. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
May 04, 2020
merchant
Loss Contingencies [Line Items]          
Provision for legal matters   $ 7 $ 159    
Return of takedown payment to the litigation escrow account $ 467 467 0    
Interchange Multidistrict Litigation          
Loss Contingencies [Line Items]          
Provision for legal matters   $ 467 $ 0    
Subsequent Event | Interchange Multidistrict Litigation          
Loss Contingencies [Line Items]          
Settlement percentage         30.00%
Subsequent Event | U.K. Merchant Litigation          
Loss Contingencies [Line Items]          
Number of plaintiffs | merchant         500
Number of claims settled | merchant         100
Merchants with outstanding claims | merchant         400
Subsequent Event | U.K. Merchant Litigation | Threatened Litigation          
Loss Contingencies [Line Items]          
Number of plaintiffs | merchant         30
Visa, MasterCard, and Certain U.S. Financial Institutions          
Loss Contingencies [Line Items]          
Maximum takedown payments the defendants are entitled to       $ 700  
U.S. Covered Litigation          
Loss Contingencies [Line Items]          
Maximum takedown payments the defendants are entitled to       467  
U.S. Covered Litigation | Interchange Multidistrict Litigation          
Loss Contingencies [Line Items]          
Provision for legal matters       $ 600  
Return of takedown payment to the litigation escrow account $ 467