Visa 2015 Annual Report Download - page 56

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2014 and 2013, were based on nominal payments volume reported by our financial institution
clients for the twelve months ended June 30, 2015, 2014 and 2013, respectively.
(2) Figures in the tables may not recalculate exactly due to rounding. Percentage changes are
calculated based on unrounded numbers.
(3) Includes consumer prepaid volume.
(4) Includes large, middle and small business credit and debit, as well as commercial 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 cards carrying the Visa, Visa Electron and Interlink brands. 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. On occasion, previously presented 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 following table provides the number of transactions processed by our VisaNet system,
including transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s
networks during the fiscal periods presented.(1)
2015(2) 2014 2013
2015 vs. 2014
% Change
2014 vs. 2013
% Change
(in millions, except percentages)
Visa processed transactions ..... 70,968 64,993 58,472 9% 11%
(1) Figures in the table may not recalculate exactly due to rounding. Percentage changes are
calculated based on unrounded numbers. On occasion, previously presented information may be
updated. Prior period updates are not material.
(2) As a result of recent changes in Russian National Payment System law, we have transitioned the
processing of Russian domestic transactions to the Russian National Payment Card System during
the third quarter of fiscal 2015. The number of transactions processed by our VisaNet system does
not reflect Russian domestic transactions processed after the transition.
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
quarter’s payments volume. Service revenues also include assessments designed to support ongoing
acceptance and volume growth initiatives, which are recognized in the same period the related volume
is transacted.
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