Visa 2015 Annual Report Download - page 25

No-surcharge rules. We have historically implemented rules that prohibit merchants from charging
higher prices to consumers who pay using their Visa-branded card or payment product instead of other
means. As part of the settlement reached in the interchange multidistrict litigation, however, Visa has
agreed to modify our rules to permit surcharging on credit transactions under certain circumstances.
See Item 8—Financial Statements and Supplementary Data—Note 20—Legal Matters included
elsewhere in this report. A number of U.S. states as well as certain jurisdictions outside the U.S. have
taken steps to prohibit surcharging. Following court challenges, some of these laws have been
invalidated by federal courts in certain states and upheld in others.
Data protection and information security. Aspects of our operations or business are subject to
privacy and data protection laws in the U.S. and other jurisdictions globally. In accordance with
governing law, we devote substantial resources to maintain and continually refine our information
security program in order to safeguard account holder information and under certain circumstances, to
provide account holder notification in the event of a security breach. In addition, the U.S. Federal
Financial Institutions Examination Council periodically reviews aspects of our operations in the U.S. to
examine our compliance with data integrity, security and operational requirements and standards, as
well as other requirements applicable to us because of our role as a service provider to financial
institutions. Regulators around the globe are considering numerous legislative and regulatory
proposals concerning privacy and data protection due to the evolving nature and handling of data. The
interpretation and application of these privacy and data protection laws around the globe are often
uncertain and in a state of flux.
Anti-money laundering, anti-terrorism and sanctioned countries. We are subject to anti-money
laundering laws and regulations, including the U.S. Bank Secrecy Act and the PATRIOT Act. In
addition, we are also subject to the economic and trade sanctions programs administered by the U.S.
Department of the Treasury, Office of Foreign Assets Controls (“OFAC”) that prohibit or restrict
dealings with certain countries, their governments and, in certain circumstances, their nationals, as well
as with specifically-designated individuals and entities such as narcotics traffickers, terrorists and
terrorist organizations. We have policies, procedures, systems and controls designed to identify and
address potentially impermissible transactions.
Government-imposed market participation influences and restrictions. Our market reach remains
limited by certain governments’ influence on their domestic payments competition and/or their
protection of domestic issuers or payments network processors. Regulators in an increasing number of
countries around the world have received statutory authority to regulate certain aspects of the
payments systems in these countries.
Regulation of Internet, mobile payment and other types of transactions. Many jurisdictions have
adopted or are considering regulations that require payments system participants, including our
financial institution clients and us, to monitor, identify, filter, restrict or take other specific actions with
regard to certain types of payment transactions. For example, U.S. federal legislation has been
enacted that requires payment system operators to implement a system that allows issuers to identify
Internet gambling transactions so they have the option to decline such transaction requests. State
governments have been interested in the potential blocking of Internet interstate sales of cigarettes and
alcohol, or the collection of state and local sales taxes on such Internet purchases. Implementing such
systems increases costs for our financial institution clients and us, and may reduce merchant
acceptance of Visa-branded cards and payment products for these purchases.
The U.S. Congress continues to consider regulatory initiatives in the areas of Internet prescription
drug purchases, copyright and trademark infringement and privacy, among others, that could impose
additional compliance burdens on our financial institution clients and us. Some U.S. states are
considering a variety of similar legislation. Various regulatory agencies also continue to examine a
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