Businessweek

Visa Inc. operates as a payments technology company worldwide. The company connects consumers, businesses, banks and governments in approximately 200 countries and territories to electronic payments. It operates a processing network, VisaNet, offering fraud protection for consumers and assured payment for merchants. The company’s business primarily consists of the following: owning, managing and promoting a portfolio of widely-accepted payment brands, including Visa, Visa Electron, PLUS and Interlink, which the company licenses to its clients for use in their payment programs; offering a range of branded payments product platforms, which its clients, primarily financial institutions, use to develop and offer credit, debit, prepaid and cash access programs, as well as digital, mobile and eCommerce platforms for their customers (individuals, businesses and government entities); providing transaction processing and value-added services to its clients through VisaNet, Visa Debit Processing Services, Visa Processing Services, CyberSource, PlaySpan and Fundamo; and promoting and enforcing a common set of operating regulations adhered to by its clients to ensure the secure functioning of its payments network and the maintenance and promotion of its brands. Core Operations The company’s clients deliver Visa products and payment services to consumers and merchants based on product platforms the company defines and manage. Transaction Processing Services Processing Infrastructure The company owns and operates VisaNet, which consists of multiple synchronized processing centers, including two data centers in the United States. In addition, Visa Europe, which is under separate ownership, operates processing centers in the United Kingdom. These are part of its synchronized system, in accordance with the terms of its Framework Agreement with Visa Europe. These centers are linked by a global telecommunications network. VisaNet is built on a centralized architecture, enabling the company to view and analyze each authorization transaction the company process in real time and to provide value-added information, including information products, such as risk scoring and loyalty applications, while the transaction data is being routed through its system. Visa also owns and manages additional data centers in the United States and internationally, including those the company added with its acquisitions of CyberSource and PlaySpan. These secure facilities allow for transaction services and connectivity to the Internet, clients and processing partners. Core Processing Services The company’s core processing services involve the routing of payment information and related data to facilitate the authorization, clearing and settlement of transactions between Visa issuers and acquirers. In addition, the company offers a range of value-added processing services to support its clients' Visa programs and to promote the growth and security of its payments network. The company processes Visa transactions occurring in the United States. It also processes Visa transactions where the issuer and the merchant are located in different countries, which the company refers to as cross-border transactions. In countries outside the United States, processing of domestic Visa transactions varies. In some countries, such as Canada and Brazil, Visa processes the majority of transactions. In other countries, transactions may be processed outside of its systems, by government-controlled payments networks, its clients, independent companies or joint ventures owned in whole or in part by its clients. The company performs clearing and settlement through VisaNet for transactions involving an issuer that is located in Visa Europe's region and an acquirer that is located in the rest of the world, or vice versa. Visa Europe authorizes, clears, and settles transactions for its members through its own processing system. Other Value-Added Processing Services The company offers a range of other value-added services in certain countries, including risk management, issuer processing, loyalty, dispute management, value-added information and CyberSo