Visa operates the VisaNet global electronic payment-processing network.
VisaNet is Visa’s electronic payment-processing network, connecting participating financial institutions, merchants, and payment devices. It authorizes, clears, and helps settle card transactions, although Visa generally does not issue cards directly to consumers or extend credit in the way a bank does.
Visa developed from Bank of America’s BankAmericard program, launched in 1958. The card system expanded internationally and was renamed Visa in 1976. Visa Inc. became a public company in 2008 after its initial public offering, one of the largest U.S. IPOs at the time.
A common mix-up is treating Visa as a bank. Banks and other financial institutions issue Visa-branded cards, while Visa supplies the network and operating rules that move transaction information between those participants. Visa’s market value reflects the scale and profitability of that network-based business model.