Visa invented and operates the payment network behind cards carrying the Visa brand.
Visa connects consumers, merchants, financial institutions, and payment processors. It generally does not lend money directly to cardholders; banks and other financial institutions issue many Visa-branded cards, while Visa provides the network that authorizes, clears, and settles transactions.
The company began with Bank of America’s BankAmericard program in 1958. BankAmericard became a national and international card system, and the Visa name was adopted in 1976. Visa later became a separate publicly traded corporation after being spun off by Visa U.S.A.’s member banks.
Visa is often confused with a card issuer. A bank may issue a Visa credit or debit card, but the Visa network processes the payment. Mastercard follows a broadly similar network model, while American Express commonly operates both a card network and card-issuing business.