Visa 2011 Annual Report Download - page 45

Table of Contents
(2) Includes prepaid volume.
(3) Total nominal volume is the sum of total nominal payments volume and cash volume. Total nominal payments volume is the total monetary value of
transactions for goods and services that are purchased. Cash volume generally consists of cash access transactions, balance access transactions, balance
transfers and convenience checks. Total nominal volume is provided by our financial institution clients, subject to verification by Visa. From time to
time, previously submitted volume information may be updated. Prior year volume information presented in these tables has not been updated, as
subsequent adjustments were not material.
(4) Service revenues in a given quarter are assessed based on payments volume in the prior quarter. Therefore, service revenues reported with respect to the
twelve months ended September 30, 2011, 2010 and 2009, were based on payments volume reported by our financial institution clients for the twelve
months ended June 30, 2011, 2010 and 2009, respectively.
The table below provides the number of transactions processed by our VisaNet system, and billable transactions processed by CyberSource's network
during the fiscal periods presented.
2011 2010 2009
2011 vs. 2010
% Change(3)
2010 vs. 2009
% Change(3)
(in millions)
Visa processed transactions(1) 50,922 45,411 39,885 12% 14%
CyberSource billable transactions(2) 4,137 3,032(4) 2,289(4) 36% 32%
(1) Represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa's networks.
(2) Transactions include, but are not limited to, authorization, settlement payment network connectivity, fraud management, payment security management,
tax services and delivery address verification. CyberSource activity primarily contributes to our data processing revenues beginning after the July 2010
acquisition.
(3) Percentage change calculated based on whole numbers, not rounded numbers.
(4) Includes CyberSource transactions prior to the July 2010 acquisition.
Results of Operations
Operating Revenues
Our operating revenues are primarily generated from payments volume on Visa-branded cards for goods and services, as well as the number, size and
type of transactions processed on our VisaNet system. We do not earn revenues from, or bear credit risk with respect to, interest and fees paid by cardholders
on Visa-branded cards. Our issuing clients have the responsibility for issuing cards and determining interest rates and fees paid by cardholders, and most other
competitive card features. We generally do not earn revenues from the fees that merchants are charged for card acceptance, including the merchant discount
rate. Our acquiring clients, which are generally responsible for soliciting merchants, establish and earn these fees.
The following sets forth the components of our operating revenues:
Service revenues are primarily earned from clients for their participation in card programs carrying marks of the Visa brand. Service revenues are
primarily assessed using a calculation of pricing applied to the prior quarter's payments volume.
Data processing revenues are earned for authorization, clearing, settlement, transaction processing services and other maintenance and support services
that facilitate transaction and information processing among our clients globally and Visa Europe. Data processing revenues include revenues earned for
transactions processed by VisaNet, our secure, centralized global processing platform, CyberSource's online payment gateway and PlaySpan's virtual goods
payment platform.
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