Visa operates VisaNet, the global electronic payments network that authorizes and processes Visa card transactions.
Visa traces its history to Bank of America’s 1958 launch of BankAmericard in California. The card program expanded internationally and was renamed Visa in 1976, creating a more globally usable brand. Visa Inc. later became a separately traded public company in 2008.
VisaNet connects merchants, acquiring banks, issuing banks, and cardholders. It handles authorization, clearing, and settlement functions, while banks and other financial institutions generally issue the cards and extend credit or debit access to customers.
A common mistake is calling Visa a traditional bank. Visa is primarily a payment-network company, not usually the lender behind a card account. Mastercard has a similar network-based model, while American Express combines network and card-issuing roles more extensively. Visa’s enormous transaction volume and global acceptance have made it one of the world’s largest companies by market capitalization.