Function

• Visa Corporation owns and operates a global payment network. It's the largest network of its kind and it's almost exclusively electronic. It facilitates the use of your credit card through the Visa network, but the card you're using is operated by a bank. When you buy something using a credit card that has the Visa logo, the retailer pays a fee to Visa to use equipment that can access the Visa network. The request for purchase then processes through the Visa network to the issuing bank, which electronically checks your balance and your spending pattern. If you have funds available, that information is relayed back to the retailer electronically and the purchase is approved. The bank pays a fee to Visa to maintain its role in the network. You receive a statement from your bank with the purchase on it and pay your bill. Visa acts as a middleman--a transporter of information and technology--not a credit card.
  
  

History

• Started in the 1950s as BankAmericard, the Visa Company has grown exponentially as electronic methods of payment have become standard. It is headquartered in the San Francisco Bay Area. Visa is considered the world's best known financial services brand worldwide. It includes a network of over 29 million merchants and approximately 1.2 million ATMs worldwide.
  
  

Geography

• Cards that use the Visa logo are accepted internationally. You need only see the Visa logo on the merchant's window, menu or business card to know that your Visa card will be accepted, provided you have available funds on your card. There are only a few places where you can't use your Visa card--places that MasterCard or American Express have set up exclusive agreements with in an attempt to increase market share for their networks.
  
  

Potential

• If you shop online, you might want to take advantage of "Verified by Visa"--Visa's latest online fraud protection for individuals. "Verified by Visa" is a security layer that you activate online. You create a password that provides another level of protection against fraudulent use of your card when you're buying over the Internet. If you're buying something online with a card registered in the program, you have to enter the password before the transaction is complete. See the link in Resources below to set this up.
  
  

Warning

• Visa works closely with financial institutions to manage fraud. That's why you might get a call if you make a purchase that's outside of your normal buying pattern. If, for example, you purchase a particularly expensive item, you might get a buzz from your bank later that day confirming the purchase was yours. Similarly, if your card is used in two distinctly different geographic locations, Visa will notify your bank and you'll get a call to confirm that the purchases are valid.