Visa 2014 Annual Report Download - page 57

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(1) Figures in the tables may not recalculate exactly due to rounding. Percentage changes are
calculated based on unrounded numbers.
(2) Service revenues in a given quarter are assessed based on nominal payments volume in the prior
quarter. Therefore, service revenues reported for the twelve months ended September 30, 2014,
2013 and 2012, were based on nominal payments volume reported by our financial institution clients
for the twelve months ended June 30, 2014, 2013 and 2012, respectively.
(3) Includes prepaid volume.
(4) Includes large, middle and small business credit and debit, as well as prepaid volume.
(5) 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 on Visa-branded cards and payment products. 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 review by Visa. From time to
time, previously submitted volume information may be updated. Prior period updates are not
material.
(6) Growth on a constant-dollar basis excludes the impact of foreign currency fluctuations against the
U.S. dollar.
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.(1)
2014 2013 2012
2014 vs. 2013
% Change
2013 vs. 2012
% Change
(in millions, except percentages)
Visa processed transactions(2) ......... 64,944 58,472 53,324 11% 10%
CyberSource billable transactions(3) ..... 7,549 6,533 5,182 16% 26%
(1) Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated
based on unrounded numbers.
(2) Represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s
networks.
(3) Transactions include, but are not limited to, authorization, settlement payments network connectivity,
fraud management, payment security management, tax services and delivery address verification.
Results of Operations
Operating Revenues
Our operating revenues are primarily generated from payments volume on Visa-branded cards
and payment products for purchased goods and services, as well as the number of transactions
processed on our network. We do not earn revenues from, or bear credit risk with respect to, interest
or fees paid by account holders on Visa-branded cards or payment products. Our issuing clients have
the responsibility for issuing cards and other payment products, and determining the interest rates and
fees paid by account holders. We generally do not earn revenues from the fees that merchants are
charged for acceptance by the acquirers, including the merchant discount rate. Our acquiring clients
are generally responsible for soliciting merchants, and establishing and earning these fees.
The following sets forth the components of our operating revenues:
Service revenues consist mainly of revenues earned for providing financial institution clients with
support services for the delivery of Visa-branded payment products and solutions. Current quarter
service revenues are primarily assessed using a calculation of current pricing applied to the prior
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