Press Releases

Midsized Company Spending
The CCE analysis found that spending by midsized companies during 2006 grew by 7.9 percent to $3.50 trillion and was the fastest among all business sectors.  Spending growth in this sector is expected to reach $3.61 trillion in 2007, a growth rate of 3.1 percent. Midsized companies are defined as having $25 million to $500 million in annual revenues. 

About 73 percent of total 2006 middle market spending was by companies in the following industries:

• Wholesale trade                                              $731 billion (21 percent)
• Retail trade                                                      $727 billion (21 percent)
• Manufacturing                                                 $695 billion (20 percent)
• Healthcare                                                       $202 billion (6 percent)
• Real estate/rental/leasing                               $179 billion (5 percent) 

Large Company Spending 
Large companies represent the largest share of CCE spending at $7.64 trillion, which grew by 7.7 percent in 2006. Spending growth in this sector is expected to be 3.7 percent, reaching $7.91 trillion in 2007. Large companies are defined as having revenues of more than $500 million.

A total of 80 percent of total large market spending was by companies in the following industries:

• Manufacturing                                                 $1.96 trillion (26 percent)
• Wholesale trade                                              $1.70 trillion (22 percent)
• Retail trade                                                      $1.25 trillion (16 percent)
• Finance/insurance                                          $662 billion (9 percent)
• Information                                                      $505 billion (7 percent)

Government Agency Spending
Government agency expenditures grew at an annual rate of 6.7 percent, to $1.26 trillion, in 2006, according to CCE. Growth in government agency business spending is expected to be 5.7 percent, reaching $1.34 trillion in 2007. 

"The Visa CCE findings clearly show that business and government spending is concentrated in a number of key areas - raw materials and manufactured goods, personnel services and rent - and we expect these categories will remain the top spending categories through 2007," said Best. "By shifting more of these significant expenditures to payment card products rather than cash or checks, businesses and governments have the opportunity to potentially better manage their cash flow, while often earning rewards."

About The Visa Commercial Consumption Expenditure Index
CCE includes all private and public sector commercial spending in the U.S. with the exception of payroll and other select expenditures. CCE utilizes government data sources and research methods similar to the Personal Consumption Expenditure (PCE) index that annually monitors consumer-related spending. By using the same source of measures from the Bureau of Economic Analysis (BEA) and the Census Bureau, including the gross domestic product, CCE offers an unbiased and consistent way to monitor business expenditures in the United States with comparable methodology used for global spending. According to the CCE Index:

• Core Business Services includes management consulting, architectural services, engineering services, data processing, and administrative support among others.
• Maintenance and Operating Supplies includes spending on construction, utilities, telecommunications, advertising, office supplies, computer equipment and maintenance and repair.
• Capital Equipment is defined as any expenditure on goods with a lifespan of more than five years, including transportation equipment, industrial equipment and machinery.
• Other Spending includes expenditure on doctors, personal services, consumer rental services, etc.

About Visa Commercial Solutions
Visa offers small businesses, middle market companies, large corporations and government agencies trusted, reliable solutions that meet their many commercial payment needs - for virtually any purchase type, any situation or any business process. These capabilities help businesses and government agencies potentially streamline operations, reduce overall costs and improve cash flow for better management of their payment processes. Visa's commercial solutions offer a great way for businesses and the public sector to pay and be paid. For more information about Visa's commercial business, please visit www.visa.com/commercial.

About Visa USA
Visa USA is a leading payments brand and the nation's largest payments system, enabling banks to provide their consumer and business customers with a wide variety of payment alternatives tailored to meet their evolving needs. Visa USA is committed to increasing the choice, convenience, acceptance and security of Visa payments for all stakeholders - financial institutions, cardholders and merchants. In the United States, more than 521 million Visa-branded cards have been issued by our 13,320 financial institution customers.