Visa 2010 Annual Report Download - page 9

Table of Contents
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, referred 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. In addition, we provided clearing and settlement services for Visa transactions occurring entirely within Visa
Europe's region before Visa Europe substantially deployed its own processing system in fiscal 2010. The impact to our consolidated financial results as a
result of this deployment was not 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 clients 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 (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. Visa Processing Service (VPS)
provides 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, which allow our clients 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 clients' back-office analysts and
client service representatives to manage and resolve Visa transaction disputes more efficiently than with paper-based processes.
Value-Added Information Services. We provide our clients with a range of additional information-based business analytics and applications, as well as
the transaction data and associated infrastructure required to support them.
Additionally, through our CyberSource-branded solutions, we provide technology and services that make it easier for eCommerce merchants to accept,
process and reconcile payments, manage fraud, and safeguard payment security online. CyberSource brings these payment management solutions to market
on two platforms: CyberSource Enterprise services, targeting medium and large-sized enterprise businesses, and Authorize.Net, targeting smaller businesses
with less than $3 million in annual online sales.
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