Visa operates VisaNet, the global electronic payments network behind Visa-branded transactions.
VisaNet authorizes, clears, and settles payment transactions made with Visa cards and related products. It connects merchants, acquiring banks, issuing banks, and cardholders, while Visa generally does not act as the lender that extends credit on a traditional Visa credit card. Banks and other financial institutions issue the cards and set many customer terms.
Visa traces its history to Bank of America’s BankAmericard program, launched in California in 1958. The system was later expanded internationally and became Visa, with the company adopting the name Visa Inc. before its 2008 initial public offering.
A frequent mix-up is treating Visa as a bank or comparing it directly with card issuers. Visa is primarily a payments-network company, while banks issue many Visa cards. Mastercard operates a similar network, but it is a separate company and competitor.