Visa Inc. supplies payment-network services branded Visa but does not issue most Visa cards itself.
Visa operates a global electronic payment network that connects cardholders, merchants, banks, and payment processors. Its network authorizes, clears, and settles transactions, while banks and other financial institutions generally issue Visa cards and set customer terms. This makes Visa primarily a payments network rather than a conventional lending bank.
Visa’s history began with Bank of America’s BankAmericard program, launched in California in 1958. The card system expanded internationally and was later renamed Visa. Visa Inc. became a publicly traded company in 2008 after the largest initial public offering in the United States at that time.
A common mix-up is treating Visa and its issuing banks as the same business. A Visa card may be issued by a bank such as JPMorgan Chase or a national financial institution. Visa usually does not extend the cardholder’s credit directly; the issuer manages the account and bears the related lending risk.