Visa 2009 Annual Report Download - page 8

Table of Contents
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 virtually all Visa transactions occurring in the United States. We also process virtually all Visa cross-border transactions (that is,
transactions where the issuer and the merchant are located in different countries). In many countries outside the United States, domestic transactions may be
processed outside of our systems, generally by government-controlled payments networks, our financial institution customers, independent companies or joint
ventures owned in whole or in part by our financial institution customers.
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. In addition, we currently provide clearing and settlement services for Visa transactions occurring entirely within
Visa Europe's region and will continue to provide such services until completion and deployment of Visa Europe's own processing system which is expected
to be fully deployed in fiscal 2010. The impact to our consolidated financial results as a result of this deployment is not expected to be material. Visa Europe
authorizes 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, debit issuer processing, loyalty services, dispute
management and value-added information services.
Risk Management Services. We provide customers in certain countries with a number of value-added risk-management services. These services,
including Visa Advanced Authorization, include 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 products. In addition to core issuer authorization processing, DPS offers card management services, exception
processing, PIN and ATM network gateways, call center services, fraud detection services and ATM terminal driving. Through VPS, we provide credit, debit
and prepaid issuer processing services, including multicurrency processing functionality, outside the United States.
Loyalty Services. We offer loyalty services, such as the Visa Incentive Network and Visa Extras, that allow our customers to differentiate their Visa
program offerings, enhance the attractiveness of their Visa payment programs and strengthen their relationships with cardholders and merchants.
Dispute Management Services. We manage Visa Resolve Online, an automated web-based service that allows our customers' back-office analysts and
customer service representatives to manage and resolve Visa transaction disputes more efficiently than with paper-based processes.
Value-Added Information Services. We provide our customers with a range of additional information-based business analytics and applications, as well
as the transaction data and associated infrastructure required to support them.
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