Visa 2010 Annual Report Download - page 45

Table of Contents
This table sets forth transaction volumes processed by our VisaNet system during the following fiscal periods:
2010 2009 2008
2010 vs. 2009
% Change
2009 vs. 2008
% Change
(in millions)
Total processed transactions 45,411 39,885 36,956 14% 8%
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 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 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 are primarily based on
information we accumulate from VisaNet, our secure, centralized, global processing platform, which provides transaction processing services linking issuers
and acquirers. Data processing revenues also include revenues earned for transactions processed by CyberSource's online payment gateway.
International transaction revenues are assessed to clients on transactions where the cardholder's issuer country is different from the merchant's country.
International transaction revenues are generally driven by cross-border payments volume, which includes single currency transactions, and currency
conversion activities for transactions involving more than one currency.
Other revenues consist primarily of revenues earned from Visa Europe in connection with the Visa Europe Framework Agreement and fees from
cardholder services and licensing and certification. Other revenues also include optional service or product enhancements, such as extended cardholder
protection and concierge services.
Volume and support incentives represent contracts with clients, merchants and other business partners for various programs designed to build payments
volume and to increase product acceptance. These incentives are accounted for as reductions to operating revenues.
Operating Expenses
Personnel includes salaries, stock-based compensation, incentives, fringe benefits and contractor expense.
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