Visa (PFTS:V) Effective Interest Rate on Debt %: 3.15% (As of Mar. 2026)

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Director of Data and Quant Analytics at GuruFocus
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What is Visa Effective Interest Rate on Debt %?

Visa PFTS:V 96 Effective Interest Rate on Debt % is 3.15% as of Mar. 2026. GuruFocus rates PFTS:V with a GF Score™ of 96/100. The stock has 3 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Visa's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was ₴31,706.17 Mil. Visa's average total debt for the quarter that ended in Mar. 2026 was ₴1,005,357.17 Mil. Therefore, Visa's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 3.15%.

Visa  (PFTS:V) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Visa Effective Interest Rate on Debt % Related Terms

Visa Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Visa's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Visa Effective Interest Rate on Debt % Chart

Visa Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.28 2.48 3.00 3.10 2.56

Visa Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.06 0.68 3.34 3.35 3.15

PFTS:V vs MA, AXP, COF: Effective Interest Rate on Debt % Comparison

For the Credit Services subindustry, Visa's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Visa Effective Interest Rate on Debt % vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Visa's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Visa's Effective Interest Rate on Debt % falls into.


Visa Effective Interest Rate on Debt % Calculation

Visa's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Sep. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Sep. 2024 )+Total Debt  (A: Sep. 2025 ))/ count )
=-1  *  -26228.839/( (927850.731+1120893.201)/ 2 )
=-1  *  -26228.839/1024371.966
=2.56 %

where

Total Debt  (A: Sep. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=927850.731 + 0
=927850.731

Total Debt  (A: Sep. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=872899.31 + 247993.891
=1120893.201

Visa's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -31706.168/( (943035.848+1067678.495)/ 2 )
=-1  *  -31706.168/1005357.1715
=3.15 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=872275.874 + 70759.974
=943035.848

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=998254.455 + 69424.04
=1067678.495

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 3.15% mean?
Visa (PFTS:V) has a Effective Interest Rate on Debt % of 3.15% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Visa and its competitors.
Is Visa's Effective Interest Rate on Debt % too high?
Visa's current Effective Interest Rate on Debt % is 3.15%. Overall, Visa has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does Visa's Effective Interest Rate on Debt % compare to MA and AXP?
Visa's Effective Interest Rate on Debt % of 3.15% can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Credit Services company?
A good Effective Interest Rate on Debt % depends on the Credit Services industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Visa and its competitors. Visa's current Effective Interest Rate on Debt % is 3.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Visa stock overvalued right now?
Visa (PFTS:V) has a current Effective Interest Rate on Debt % of 3.15%. The current Effective Interest Rate on Debt % is 3.15%. Visa's overall GF Score™ is 96/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Visa (PFTS:V), the current Effective Interest Rate on Debt % is 3.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Visa Business Description

Address P.O. Box 8999, San Francisco, CA, USA, 94128-8999
Visa is the largest payment processor in the world. In fiscal 2025, it processed almost $17 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.