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Visa Inc. (NYSE: V) and MasterCard Inc. (NYSE: MA) are two companies that can help you profit from the economic downturn. Credit card companies have rallied nearly 20% from their lows of the year, but remain relatively undervalued considering their strong growth and profitability. As a result, this sector may be one worth watching over the next few months.

The only thing that these companies care about is higher spending by consumers - it doesn't matter where that spending takes place. Visa and MasterCard make money by charging merchants a fee whenever a credit card is swiped. This fee is a set transaction fee plus a percentage of the sale amount. The actual lending risk is taken on by the member banks that back the credit lines given to consumers.

Higher oil prices have proven to be a major boost to credit card companies. Gas remains one of the most commonly charged items for consumers and higher ticket values equate to higher fees for credit card companies like Visa and MasterCard. Meanwhile, consumers can't exactly stop going to the pump as they need transportation to and from work, stores, and other critical areas.

Higher food prices have also provided a boost to the credit card companies. Grocery stores are another place where the plastic is used more often than not. Higher food costs have led to higher food bills that have helped boost the average ticket value for grocery bills. Again, this is another category that people can't afford to live without. Credit card companies will continue to benefit as long as they are high.

The only category that credit card companies don't make as much money off of is discretionary spending. Vacations, trips to the casino, candy bar purchases, and other side-effects of a good economy are areas that consumers tend to use cash. These days, consumers have very little cash to spare and therefore tend to spend less in these areas. Moreover, when they are forced to make such purchases, it is often on credit.

Shares of MasterCard Incorporated dropped $3.20, or 1.14%, to $276.80 in early trading.

Shares of Visa Inc. dropped $0.60, or 0.72%, to $82.72 in early trading.

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