NEW YORK, NY -- (Marketwire) -- 05/04/12 -- Despite consumer spending, which makes up 70 percent of U.S. economic activity, rising at a faster pace in almost a year Americans are charging less on their credit cards. This has become quite troublesome for credit card companies as they rely on processing fees and interest charges to generate revenue. Five Star Equities examines the outlook for companies in the Credit Services Industry and provides equity research on Visa Inc. (NYSE: V) and MasterCard Inc. (NYSE: MA).

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While card companies are benefiting from an increase in card use by overseas customers and the wealthy the average American has held back. According to numbers releases by the Federal Reserve credit card charges in the U.S. decreased by $5 billion in January and February combined. The recent financial crisis and recession have led Americans to save more and spend less. With many still uncertain about the state of the U.S. economy many consumers are just not ready to rack up new credit card debt. In February consumers held $799 billion in credit card debt, which was 15 percent less than what they held during the first month of the "Great Recession."

Five Star Equities releases regular market updates on the Credit Services Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.

Visa on Thursday announced financial results for the Company's fiscal second quarter 2012 ended March 31, 2012. Net income for the quarter was $1.1 billion, an increase of 23% over the prior year. Despite posting better-than-expected results, shares of the company fell in reaction to a statement by Joseph Saunders, Visa's CEO, saying that the company was under a Justice Department probe for an antitrust violation.

MasterCard on Wednesday reported first quarter 2012 financial results. The company reported net income of $682 million, up 21%, and earnings per diluted share of $5.36, up 25%, in each case versus the year-ago period. Net revenue was $1.8 billion, a 17% increase versus the same period in 2011. On a constant currency basis, net revenue increased 19% compared to the same period in 2011. Despite beating Wall Street's profit and revue, shares fell during early morning trading news about further distress in Europe and a slowing job market spooked traders.

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