Profile: Visa Inc (V)
23 Jul 2014
Visa Inc. (Visa), incorporated on May 25, 2007, is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and electronic payments. The Company operates in Payment Services.
The Company operates processing networks VisaNet, which facilitates authorization, clearing and settlement of payment transactions worldwide. It also offers fraud protection for account holders and assured payment for merchants. The Company operates an open-loop payments network in which Visa connects and manages the exchange of information and values between: issuers, which includes financial institutions that issue Visa-branded cards or payment products to account holders, and acquirers, which includes financial institutions that contract with merchants to accept Visa-branded cards or payment products.
The Company provides digital wallet service and acceptance mark, is now commercially available in the United States where it is featured on more than fifty merchant sites, and has also launched in Australia and Canada. The Company has also licensed payWave, Visa's mobile NFC payment technology, to third-party wallet providers to help ensure their solutions are enabled with Visa's payment functionality, and the Company has signed agreements with several mobile operators to extend payment functionality to their mobile subscribers. In addition, the Company certifies NFC-enabled smartphones from device manufacturers for uses with payWave, and the Company has partnered with Samsung to preload payWave on Samsung's NFC-enabled smartphones. Visa also offers the Visa Mobile Provisioning service - a solution that enables banks and mobile operators to securely provision mobile payment accounts on NFC-enabled smartphones.
The Company's operating revenues consists principally of service revenues, data processing revenues and international transaction revenues, and are reduced by costs incurred under client incentive arrangements. The Company has one reportable segment, Payment Services. Service revenues consist of revenues earned for providing financial institution clients with support services for the delivery of Visa-branded payment products and solutions. Service revenues are primarily generated from payments volume on Visa-branded cards and payment products for purchased goods and services.
Data processing revenues consist of revenues earned for authorization, clearing, settlement, network access and other maintenance and support services that facilitate transaction and information processing among the Company's financial institution clients globally and with Visa Europe. Data processing revenues are primarily generated from the number of transactions the Company processes. International transaction revenues consist of revenues earned for cross-border transaction processing and currency conversion activities. Cross-border transactions arise when the country of origin of the issuer is different from that of the merchant. International transaction revenues are primarily generated by cross-border payments and cash volume. Client incentives consist of long-term contracts with financial institution clients and other business partners for various programs designed to build payments volume, increase Visa-branded card and product acceptance and win merchant routing transactions over the Company's network. These incentives are primarily accounted for as reductions to operating revenues.
Core Products and Services
Visa provides a variety of payment solutions that support payment products that issuers can offer to their account holders: pay with debit; pay ahead with prepaid, and pay later with credit products. Visa also offers a growing suite of digital, eCommerce and mobile products and services. These services facilitate transactions on the Company's network among account holders, merchants, financial institutions and governments in mature and emerging markets globally. The Company's debit payment solutions support issuers' payment products that draw on demand deposit accounts, such as checking accounts. The Company's prepaid payment solutions support issuers' payment products that access a pre-funded amount, allowing account holders to enjoy the convenience and security of a payment card in lieu of cash or checks. The Company's credit payment solutions support issuers' deferred payment and customized financing products.
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 the Company's issuers and acquirers. VisaNet is built on a centralized architecture, enabling the Company to view and analyze each authorization transaction the Company processes in real time and to provides value-added services, including information products, such as risk scoring and loyalty applications, while the transaction data is being routed through its network.
The Company's processing services continue to expand to address the needs of all participants in the evolving payments ecosystem, through such offerings as the Company's merchant gateway and Visa Debit Processing Services (DPS). Merchant gateway services provided through the Company's CyberSource subsidiaries enable gateway routing and other services that make it easier for eCommerce merchants to accept, process and reconcile payments, manage fraud and safeguard payment security online. DPS provides comprehensive issuer processing services for participating issuers of Visa debit, prepaid and ATM payment products. These and other services support the Company's financial institution clients and their use of its products, and promote the growth and security of its payments network.
VisaNet consists of multiple synchronized processing centers, including two data centers in the United States, which are linked by a global telecommunications network and are engineered for redundancy. In addition, in accordance with the terms of the Framework Agreement among Visa Inc., Visa Europe Limited and others, Visa Europe's processing centers in the United Kingdom must maintain interoperability with Visa's synchronized system. Intelligent access points around the world complete the VisaNet global processing infrastructure and enable merchants and financial institutions worldwide to access the Company's core processing and value-added services.
The Company 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 facilities enable transaction services and provide uninterrupted connectivity for account holders, the Company's financial institution clients and its processing partners.
The Company competes MasterCard, American Express, JCB and Diners Club
P.O. Box 8999
SAN FRANCISCO CA 94128-8999
Company Web Links
- Visa, MasterCard lose ruling vs retailers over credit card fees
- Visa, MasterCard say new sanctions not affecting Russian operations
- Warburg Pincus taps former Visa executive Walsh
- US STOCKS-Dow, S&P end at records in fireworks before the Fourth
- Visa, MasterCard may not pay Russia collateral if local partners found