Visa reported a rise of 20% in third-quarter profit Tuesday, helped by strong consumer spending on dining out and travel even as borrowing costs remain elevated.

Stronger-than-expected U.S. retail sales in June suggest consumer spending remains resilient as hopes of a soft landing for the economy and bets of rate cuts by the Federal Reserve encourage Americans to spend more on big-ticket purchases.

Visa's payments volume rose 7% in the quarter on a constant dollar basis. Signaling robust international travel demand, cross-border volumes excluding transactions within Europe jumped 14%.

Net revenue in the quarter jumped 10% to $8.90 billion.

Shares of the world's largest payments processor fell 1% in extended trading.

Net income rose to $4.87 billion, or $2.40 per share, in the three months ended June 30, from $4.16 billion, or $2 per share, a year earlier.