Visa operates the electronic payment network behind the Visa card brand.
Visa connects cardholders, merchants, financial institutions, and payment processors so that transactions can be authorized, cleared, and settled. It generally does not lend money directly to cardholders; banks and other issuers provide Visa-branded credit, debit, and prepaid cards.
The company grew from Bank of America’s BankAmericard program, launched in 1958. BankAmericard was later expanded internationally and renamed Visa in 1976. Visa became a public company through an initial public offering in 2008, one of the largest in U.S. history at the time.
Mastercard is the most common confusion because it runs a similar global card network. American Express differs in its traditional model because it has historically issued many cards and acquired merchants directly, while Visa’s network model relies heavily on partner financial institutions.