Visa 2011 Annual Report Download - page 8

Table of Contents
VisaNet is built on a centralized architecture, enabling us to view and analyze each authorization transaction we process in real time and to provide
value-added information, such as risk scoring or loyalty applications, while the transaction data is being routed through our system.
CyberSource, a wholly-owned subsidiary of Visa Inc., operates multiple data centers in the United States and internationally. These secure data center
facilities allow for high availability transaction services and connectivity to the Internet, clients and processing partners.
Core Processing Services
Our 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, we offer a range of value-added processing services to support our clients' Visa programs and to
promote the growth and security of our payments network.
Authorization is the process of approving or declining a transaction before a purchase is finalized or cash is disbursed. Clearing is the process of
delivering final transaction data from an acquirer to an issuer for posting to the cardholder's account, the calculation of certain fees and charges that apply to
the issuer and acquirer involved in the transaction, and the conversion of transaction amounts to the appropriate settlement currencies. Settlement is the
process of calculating, determining, reporting and transferring the net financial position of our issuers and acquirers for all transactions that are cleared.
The issuer and acquirer involved in a typical Visa transaction perform additional functions that we do not generally perform or monitor. For example,
the acquirer credits the merchant's account for the amount of the transaction less any fees the acquirer charges in accordance with the contractual agreement
between the merchant and the acquirer. In addition, the issuer sends a statement to the cardholder and collects payment, in the case of a credit or deferred
debit card, or collects payment directly from the cardholder's deposit account, in the case of a debit card.
We process most Visa transactions occurring in the United States. We also process most Visa transactions where the issuer and the merchant are located
in different countries, which we refer to as cross-border transactions. In many countries outside the United States, domestic transactions may be processed
outside of our systems, generally by government-controlled payments networks, our clients, independent companies or joint ventures owned in whole or in
part by our clients.
We perform 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
We offer a range of other value-added services in certain countries, including risk management, issuer processing, loyalty, dispute management, value-
added information and CyberSource-branded services.
Risk Management Services. We provide clients in certain countries with a number of value-added risk-management services. These services, including
Visa Advanced Authorization, provide preventive, monitoring, investigative and predictive tools, which are intended to mitigate and help eliminate fraud at
the cardholder and merchant level.
Issuer Processing Services. Visa Debit Processing Services, or DPS, provides comprehensive issuer processing services for participating U.S. issuers of
Visa debit, prepaid and ATM payment
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