The Business Model of VISA

VISA is the world’s largest credit and debit card company and provides payment solutions around the globe. It makes its payment platform available to banks that develop credit and debit card programs for their customers. VISA distinguishes between banks as Issuers or Acquirers. While Issuers provide the cards to the card holders, Acquirers maintain relationships with the merchants. VISA manages the exchange of information between the different agents by operating an “Open-loop payments Network”. When a payment from the card holder to the merchant is processed, the information goes to the Acquirer, then through the VISA network to the Issuer and the same way back until the payment is accepted or rejected.