Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of James Friedman – Susquehanna.
James Friedman – Susquehanna
In terms of the Canada contribution, I think you mentioned on the call that the pricing benefit that you received in the past annualized in April. Are you seeing any potential for new price increases, and there is a lot of discussion there related to Interac; I was wondering if you could give us an update as to the pricing environment in Canada.
David Mangum
In terms of relating to the financials, there are price increases at the margin assumed over the course of 2010; nothing remotely resembling the scale of what you saw in 2009. Just more of the typical management of the market and management of the operation which we do a pretty nice job of in Canada. In terms of the ongoing change with Interac or anything else we see on the horizon, maybe I’ll turn it over to Paul and Jim to comment on that.
Paul Garcia
I’ll be happy to comment on the Interac. Interac as you know is the one debit brand in Canada, and Visa and Mastercard recognized that Canadian consumers would benefit from a brand that has more global acceptance, and consequently they are in the throes of entering that market and that would in fact have some opportunity for processors, and you’re exactly right. We’re not in a position to quantify it at present, but we do think there is some upside opportunity if that in fact is successful.
James Kelly
In terms of the timing, the fourth quarter was the Visa annualization, and Mastercard will be during this first or second quarter of 2010. As Paul alluded to, as the debit networks gain traction and the cards are issued, we will see an interchange where Interac today does not have an interchange. We will see an interchange in the market, and the likelihood is that will provide us some opportunity as well.
James Friedman – Susquehanna
David, I know you had alluded to the revenue impact related to Canadian dollar. How should we think about the margin impact vis-à-vis Canada?
David Mangum
Relative to the quarter or the year 2010?
James Friedman – Susquehanna
Fiscal Q4.
David Mangum
Fiscal Q4 really sees one more of the full quarter effect on a year over year basis of the movement in the dollar that we saw starting in Q2. At the end of the day, you’ve got a business that would have grown in the 20s in local currency reduced down to some of the numbers you see in our release by basically FX and nothing else. Does that help enough?
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