Visa operates one of the world’s largest payment networks by purchase transactions.
Visa does not generally issue cards, lend money to cardholders, or set the interest rates charged by banks. Instead, its network connects consumers, merchants, financial institutions, and payment processors. Banks issue Visa-branded cards, while merchants use acquiring institutions and Visa’s infrastructure to authorize and settle transactions.
The modern company grew from Bank of America’s BankAmericard program, launched in California in 1958. BankAmericard became a national and international card network before adopting the Visa name in 1976. Visa became a separate public company in 2008, when its initial public offering raised billions of dollars.
A frequent mix-up is assuming Visa and Mastercard are banks. They are primarily payment-network companies. Their business model differs from card issuers such as JPMorgan Chase or American Express, although American Express combines network and issuing functions more directly.