Visa Inc.

Company Overview

Business Model: Visa Inc. is a global leader in digital payments, facilitating secure, reliable, and efficient global commerce and money movement. The company primarily provides transaction processing services, including authorization, clearing, and settlement, within a four-party model connecting consumers, issuing and acquiring financial institutions, and sellers. This model has expanded to include digital banks, digital wallets, financial technology companies (fintechs), governments, and non-governmental organizations (NGOs). Visa Inc. operates its proprietary advanced transaction processing network, VisaNet, as a single connection point for money movement across more than 200 countries and territories. Visa Inc. is not a financial institution; it does not issue cards, extend credit, or set rates and fees for account holders, nor does it bear credit risk for these activities.

Market Position: Visa Inc. is positioned as one of the world’s leaders in digital payments and one of the largest retail electronic funds transfer networks globally. The company is a global leader in affluent and premium co-branded programs and operates the largest money movement platform worldwide by transactions, volumes, and endpoints. Its competitive advantages stem from its global brand, broad portfolio of payment products, Commercial & Money Movement Solutions (CMS) offerings, value-added services, and a proven track record of secure and reliable transaction processing.

Recent Strategic Developments: Visa Inc. is committed to advancing innovation in payment technology, including the early adoption of artificial intelligence (AI) models and ongoing investment in next-generation technologies such as generative AI (GenAI), stablecoins, and agentic commerce. Key initiatives include:

• Visa as a Service stack: A four-layer architecture (foundation, services, solutions, access) leveraging componentized capabilities and global connectivity to deliver services to clients worldwide.
• Network of networks strategy: Aimed at providing a single connection point for diverse money movement, unifying the complex payments ecosystem across person-to-person (P2P), business-to-consumer (B2C), business-to-business (B2B), and government-to-consumer (G2C) payments.
• Product Innovations: Launched Visa Pay in 2025 to expand digital payment access, introduced Tap to Add Card in 2024 (now live for over 1.4 billion Visa credit and debit cards), expanded Tap to Phone capabilities to over 20 million transacting devices, and is piloting Tap to Confirm for high-risk transactions.
• Agentic Commerce: Introduced Visa Intelligent Commerce, integrating tokenization, authentication, and predictive analytics, with a pilot program processing live agentic token transactions in 2025.
• Stablecoin Initiatives: Developing a full-stack stablecoin platform, facilitating over $100 billion in crypto and stablecoin asset purchases and over $35 billion in spend through crypto-linked Visa payment credentials since 2020. A stablecoin prefunding pilot for banks, remitters, and financial institutions was announced in September 2025, and the company is enabling banks to issue and manage their own stablecoins via the Visa Tokenized Asset Platform.
• Acquisitions: Completed the acquisition of Featurespace, an AI payments protection technology developer, in December 2024 for $946 million. Completed the acquisition of Pismo Holdings, a global cloud-native issuer processing and core banking platform, in January 2024 for $929 million. Entered into a definitive agreement to acquire a majority interest in Prosa, a leading payments processor in Mexico, subject to regulatory approvals.

Geographic Footprint: Visa Inc. operates across more than 200 countries and territories. Its four global data centers are located in the U.S., the United Kingdom, and Singapore. In fiscal 2025, 39% of net revenue was generated in the U.S., with the remaining 61% from international markets. No individual country, other than the U.S., accounted for 10% or more of total net revenue. Over 60% of Visa Inc.'s approximately 34,100 employees are located outside the U.S.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Operating Margin: 60.0% (FY25)
• Net Margin: 50.1% (FY25)

Investment in Growth:

• R&D Expenditure: Not explicitly stated as a separate line item.
• Network and Processing Expenses: $0.894 billion (FY25)
• Depreciation and Amortization: $1.220 billion (FY25)
• Capital Expenditures (Purchases of property, equipment and technology): $1.482 billion (FY25)
• Strategic Investments:
  • Featurespace acquisition: $946 million (Dec 2024)
  • Pismo Holdings acquisition: $929 million (Jan 2024)
  • Investment in Tink (open banking solution)

Business Segment Analysis

Visa Inc. operates as a single reportable segment, Payment Services, as all significant operating decisions are based on the analysis of Visa Inc. as a single global business. The Chief Executive Officer, as the chief operating decision maker, uses consolidated net income to assess performance and allocate resources. While not formal segments, Visa Inc. focuses its growth strategy across three pillars: Consumer Payments (CP), Commercial & Money Movement Solutions (CMS), and Value-Added Services (VAS).

Consumer Payments (CP)

Financial Performance: Specific revenue and operating margin for CP are not disclosed as it is not a separate reportable segment. Key Growth Drivers: Visa Inc. aims to strengthen its impact in card-based consumer payments and expand its reach in non-card-based payments. This is driven by investments in Tap to Everything technology, tokenization, cross-border capabilities, offerings to affluent consumers, and consumer credit capabilities. Product Portfolio: Core products include credit, debit, and prepaid cards and digital payment credentials. Innovations include Tap to Everything use cases (Tap to Pay, Tap to Phone, Tap to Add Card, Tap to Confirm), Visa Token Service (VTS), Visa Cloud Token Framework, Visa Payment Passkey, and multi-currency payment credentials. Visa Flex Credential allows consumers to switch between multiple funding sources. Visa Pay, launched in 2025, expands digital payment access by connecting digital wallets to Visa Inc.'s network. Market Dynamics: The addressable consumer spend, excluding Russia and China, is over $40 trillion annually, with an estimated $20 trillion opportunity in underserved consumer spend (cash, check, legacy ACH, A2A, RTP). Tap to Pay accounted for 79% of global and 66% of U.S. face-to-face transactions in fiscal 2025. Visa Inc. processed over 2.4 billion contactless transactions on global transit systems in fiscal 2025.

Commercial & Money Movement Solutions (CMS)

Financial Performance: Specific revenue and operating margin for CMS are not disclosed as it is not a separate reportable segment. Key Growth Drivers: Focused on digitizing and improving payment and money movement experiences beyond consumer-to-business (C2B) payments, including P2P, B2C, B2B, and G2C payments, through its network of networks strategy. Product Portfolio:

• Visa Commercial Solutions: Offers small business cards, corporate (travel) cards, purchasing cards, virtual cards, and digital payment credentials. Solutions include a small business supplier matching webtool and Accounts Receivable Manager for large business spend.
• Visa Direct: A global money movement platform facilitating domestic and cross-border P2P, B2C, B2B, and G2C payments, as well as seller settlements and refunds. It utilizes over 90 domestic payment schemes and over 60 card and wallet networks, with potential to reach approximately 12 billion endpoints. Visa+ provides simplified fund delivery through alias-linked accounts and wallets. Market Dynamics: Represents a total addressable opportunity of approximately $200 trillion of payment flows annually, excluding Russia and China. Visa Commercial Solutions targets a $35 trillion annual opportunity in B2B payments. Visa Direct targets approximately $55 trillion in P2P, B2C, and G2C money movement flows and $25 trillion in B2B money movement flows. In fiscal 2025, Visa Direct processed over 12.5 billion transactions for more than 650 partners.

Value-Added Services (VAS)

Financial Performance: Revenue from value-added services was $10.9 billion in fiscal 2025, representing a 24% year-over-year increase from $8.8 billion in fiscal 2024. Key Growth Drivers: Aims to diversify revenue by enhancing Visa Inc. payments, enabling all payments (including A2A and alternative methods), and going beyond payments to help clients optimize their businesses. Product Portfolio:

• Issuing Solutions: Includes Cardholder Engagement (e.g., airport lounge access, dining reservations, event tickets), digital enablement solutions (e.g., subscription manager, Smarter Stand-In Processing), loyalty and benefits, Buy Now, Pay Later (BNPL) capabilities, and Issuer Processing (Visa DPS, Pismo).
• Acceptance Solutions: Provides modular services like Network Products (e.g., account verification, Account Updater), the Visa Acceptance Platform (e.g., Cybersource, Authorize.net), and Post-Purchase solutions (e.g., Verifi, Visa Resolve Online).
• Risk and Security Solutions: Offers AI-driven risk detection and prevention, including the Visa Protect suite (e.g., Visa Consumer Authentication Service, Visa Advanced Authorization, Visa Provisioning Intelligence, Visa Deep Authorization, Visa Protect for A2A Payments, Visa Risk Manager). Cybersecurity solutions include the Visa Account Attack Intelligence Score. Featurespace, acquired in December 2024, enhances real-time AI-powered payments protection.
• Advisory and Other Services: Includes Visa Advisory Services (Visa Consulting and Analytics (VCA) offering expertise in strategy, digital, AI, cybersecurity, etc.), Visa Marketing Services, and Data Solutions (e.g., Visa Analytics Platform). Through Tink, its open banking platform, Visa Inc. is accelerating open banking development and adoption, including the launch of Visa A2A in the UK in fiscal 2025. Market Dynamics: Represents an approximately $520 billion annual revenue opportunity, with Issuing Solutions, Acceptance Solutions, Risk and Security Solutions, and Advisory and Other Services each representing approximately $125 billion, $95 billion, $150 billion, and $150 billion, respectively.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Visa Inc. repurchased 54 million shares of its Class A common stock for $18.2 billion in fiscal 2025. In fiscal 2024, 64 million shares were repurchased for $16.958 billion, and in fiscal 2023, 55 million shares for $12.182 billion.
• Dividend Payments: Total dividend payments were $4.6 billion in fiscal 2025, $4.2 billion in fiscal 2024, and $3.8 billion in fiscal 2023.
• Future Capital Return Commitments: As of September 30, 2025, Visa Inc. had $24.9 billion remaining under its authorized multi-year share repurchase program. A quarterly cash dividend of $0.67 per share of Class A common stock was declared on October 28, 2025.

Balance Sheet Position:

• Cash and Equivalents: $17.164 billion as of September 30, 2025.
• Total Debt: $25.392 billion as of September 30, 2025.
• Net Cash Position: -$8.228 billion (Net Debt) as of September 30, 2025.
• Debt Maturity Profile: Future principal payments on outstanding debt include $5.587 billion in fiscal 2026, $2.750 billion in fiscal 2027, $1.470 billion in fiscal 2029, and $15.585 billion thereafter.

Cash Flow Generation:

• Operating Cash Flow: $23.059 billion in fiscal 2025, an increase from $19.950 billion in fiscal 2024 and $20.755 billion in fiscal 2023.

Operational Excellence

Production & Service Model: Visa Inc.'s operational philosophy centers on facilitating secure, reliable, and efficient global commerce and money movement through its proprietary advanced transaction processing network, VisaNet. The company provides authorization, clearing, and settlement services, aiming to offer a single connection point for money movement to multiple endpoints. The Visa as a Service stack, with its foundation, services, solutions, and access layers, underpins this model, enabling clients to leverage Visa Inc.'s network capabilities globally.

Supply Chain Architecture: Key Suppliers & Partners: Visa Inc. relies on a broad ecosystem of partners, including nearly 14,500 financial institutions, emerging fintechs, AI companies, network partners, vendors, and suppliers. These relationships are crucial for product development, technology access, transaction processing, and adherence to operating rules and legal requirements.

• Technology Partners: Collaborates with traditional financial institutions and emerging fintech and AI companies to innovate and expand the payments ecosystem. Facility Network:
• Manufacturing: Not applicable as Visa Inc. is a payments technology company, not a manufacturer.
• Research & Development: While not specified as distinct facilities, Visa Inc. invests in product innovation and technology platforms, which form the backbone of its product development.
• Distribution: Visa Inc. operates four global data centers located in the U.S., the United Kingdom, and Singapore, designed with high redundancy for continuous system availability, supporting its global processing environment.

Operational Metrics:

• In fiscal 2025, 329 billion payments and cash transactions with Visa Inc.'s brand were processed by Visa Inc. or other networks, averaging 901 million transactions per day. Of these, 258 billion were processed by Visa Inc.
• Total payments and cash volume was $17 trillion in fiscal 2025.
• Visa Inc. had nearly 5 billion payment credentials available for use at over 175 million merchant locations worldwide.

Market Access & Customer Relationships

Go-to-Market Strategy: Visa Inc. employs an open partnership approach, providing access to its global network through multiple integration methods, including programmatic access via application programming interfaces (APIs) and structured data exchange through its Model Context Protocol (MCP) server. This strategy enables traditional financial institutions, fintechs, and AI companies to leverage Visa Inc.'s platform infrastructure for business growth and market expansion. Distribution Channels:

• Direct Sales: Not explicitly detailed.
• Channel Partners: Engages with digital wallet providers, A2A schemes, and banks to adopt solutions like Visa Pay.
• Digital Platforms: Supports ecommerce platforms through solutions like Cybersource and Authorize.net.

Customer Portfolio:

• Enterprise Customers: Serves nearly 14,500 financial institutions globally.
• Customer Concentration: One client accounted for 11% of Visa Inc.'s total net revenue in fiscal 2025, 2024, and 2023. Geographic Revenue Distribution:
• U.S.: 39% of total net revenue in fiscal 2025.
• International: 61% of total net revenue in fiscal 2025.
• Growth Markets: Visa Inc. is investing in cross-border commerce, particularly in key travel corridors and high-potential verticals, and expanding its presence in international markets where card-linked credit penetration is lower.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The global payments industry is characterized by dynamic and rapid technological change, with evolving consumer habits driving growth in ecommerce, GenAI agent-based commerce, mobile payments, blockchain technology, and digital currencies (including stablecoins). The regulatory landscape is also evolving, leading to the creation of local networks and increased processing competition. Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Global or Multi-regional Networks: American Express, Diners Club/Discover (Capital One), JCB, Mastercard, UnionPay.
• Local and Regional Networks: NYCE, Pulse, STAR (U.S.); Interac (Canada); eftpos (Australia).
• Alternative Payments Providers: Closed commerce ecosystems, Buy Now, Pay Later (BNPL) solutions, cryptocurrency platforms (including stablecoins), Alipay, WeChat Pay.
• RTP Networks: FedNow (U.S.), PIX (Brazil), United Payments Interface (UPI) (India), PayNow (Singapore).
• Digital Wallet Providers: Expanding payment capabilities and offering non-card payment options.
• Payment Processors: Compete for processing Visa Inc. transactions, sometimes benefiting from local mandates.
• CMS Providers: Compete with ACH, RTP, wires, and B2B blockchain payments for commercial card portfolios and money movement.
• Value-Added Service Providers: A wide range of technology companies, information services, consulting firms, governments, and merchant services companies.

Emerging Competitive Threats: New entrants, disruptive technologies (e.g., GenAI, agentic AI, stablecoins), and government-sponsored national payment platforms and digital currencies (e.g., digital euro) pose potential disintermediation risks. Cross-border RTP networks are advancing and will compete with Visa Inc.'s cross-border business.

Competitive Response Strategy: Visa Inc. leverages its global brand, broad product portfolio, CMS offerings, and value-added services. It utilizes its network of networks strategy to facilitate money movement and partners with local financial institutions, sellers, fintechs, governments, and NGOs to provide tailored and innovative solutions.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: Visa Inc.'s business is significantly exposed to global economic, political, market, health, and social events. Adverse macroeconomic conditions such as recessions, inflation, rising interest rates, high unemployment, and currency fluctuations directly impact consumer and business spending. Geopolitical trends, including nationalism, protectionism, trade restrictions, and economic sanctions (e.g., suspension of operations in Russia in March 2022), can affect business expansion and revenue. Outbreaks of illnesses, armed conflicts, and climate-related events also pose risks to operations and cross-border activity. Technology Disruption: Failure to anticipate, adapt to, or keep pace with new technologies (e.g., mobile payments, ecommerce, tokenization, cryptocurrencies, blockchain, GenAI, agentic commerce) could harm Visa Inc.'s competitiveness and future growth. New technologies may also lead to intellectual property disputes. Customer Concentration: A significant portion of net revenue is concentrated among its largest clients, making Visa Inc. vulnerable to the loss of business from any of these clients.

Operational & Execution Risks

Supply Chain Vulnerabilities: Third-party suppliers of hardware and infrastructure supporting data centers and employee productivity are susceptible to supply chain disruptions, including manufacturing and shipping delays, and service disruptions due to cyberattacks. Geographic Concentration: Governments in several jurisdictions (e.g., China, India, Indonesia, Thailand, Vietnam, South Africa) promote domestic payment systems through market access barriers, preferential regulations, and mandates for local processing or data localization, which can impair Visa Inc.'s ability to compete and manage end-to-end processing.

Financial & Regulatory Risks

Market & Financial Risks: Visa Inc. indemnifies financial institution clients for settlement losses, creating settlement risk due to timing differences. Changes in client credit standing or concurrent settlement failures could expose Visa Inc. to liquidity risk and significant losses. Regulatory & Compliance Risks: Visa Inc. is subject to complex and evolving global regulations, including anti-corruption, anti-money laundering, anti-terrorism, and sanctions laws (e.g., U.S. Foreign Corrupt Practices Act, UK Bribery Act, OFAC). Increased scrutiny and regulation of interchange reimbursement fees, merchant discount rates, operating rules, and risk management protocols (e.g., U.S. Dodd-Frank Act, EU Interchange Fee Regulation, Reserve Bank of Australia, FedNow, CFPB) can impact revenue, costs, and business practices. Laws regarding privacy, data use, AI, and cybersecurity (e.g., GDPR, EU AI Act, U.S. state-level AI frameworks) are increasingly complex and fragmented, potentially leading to increased costs, legal claims, or fines. Supervisory oversight by financial sector authorities (e.g., Federal Banking Agencies, European Central Bank, Bank of England, UK's Payment Systems Regulator) imposes various requirements on governance, risk management, and system stability.

Geopolitical & External Risks

Geopolitical Exposure: Geopolitical trends, including nationalism, protectionism, restrictive visa requirements, economic sanctions, tariffs, and trade restrictions, can impact business expansion and operations. The suspension of operations in Russia in March 2022 due to sanctions exemplifies this risk. Ongoing conflicts in Ukraine and the Middle East also pose lasting impacts on regional economies. Trade Relations: Changes in trade policy, trade retaliation, and changing perceptions of U.S.-based companies in international regions can adversely affect payments volume, transactions, and client relationships. Sanctions & Export Controls: Compliance with economic and trade sanctions programs (e.g., OFAC) restricts business with certain countries and entities, limiting operational scope.

Innovation & Technology Leadership

Research & Development Focus: Visa Inc.'s R&D efforts are concentrated on developing and deploying next-generation technologies, including generative AI (GenAI), stablecoins, and agentic commerce. The company has a track record of integrating AI models into payment systems. Key areas include:

• Core Technology Areas: Tokenization technology (Visa Token Service, Visa Cloud Token Framework, Visa Payment Passkey), authentication, and predictive analytics.
• Innovation Pipeline: Developing Visa Intelligent Commerce for autonomous and agentic commerce, and a full-stack stablecoin platform with integrations into leading stablecoin issuers and payment platforms. Intellectual Property Portfolio: Visa Inc. owns and manages the Visa brand, a key asset associated with acceptance, security, convenience, speed, and reliability. Its portfolio includes numerous trademarks and patents, with ongoing efforts to pursue patents in emerging technologies. The company relies on a combination of patent, trademark, copyright, and trade secret laws, along with confidentiality procedures, to protect its proprietary technology. Technology Partnerships: Visa Inc. actively partners with traditional financial institutions, emerging fintechs, and AI companies to foster innovation and expand the payments ecosystem. It also collaborates with third parties, including potential competitors, for technology development and access.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: Visa Inc. prioritizes attracting, developing, and advancing global talent, offering unique career pathways and leadership development programs. The company's commitment to innovation is reflected in equipping employees with GenAI capabilities and fostering a strong corporate culture. Board Composition: Visa Inc.'s board of directors oversees the overall enterprise risk management framework and delegates cybersecurity program oversight to its Audit and Risk Committee (ARC). The CISO provides regular updates to the ARC and the full board.

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 34,100 employees as of September 30, 2025, an 8% increase from approximately 31,600 in fiscal 2024.
• Geographic Distribution: Employees are located in 86 countries and territories, with over 60% based outside the U.S.
• Skill Mix: Focus on enhancing employee expertise across the business, including equipping employees with GenAI capabilities to boost productivity and automation.

Talent Management: Acquisition & Retention: Voluntary workforce turnover (rolling 12-month attrition) was approximately 6% in fiscal 2025. Visa Inc. employs various strategies to attract and retain talent, including competitive employment terms and a robust employee value proposition. Employee Value Proposition: Offers a comprehensive benefits package, including retirement savings, an employee stock purchase plan, financial well-being sessions, and enhanced mental health benefits. The UPLIFT program fosters employee recognition and appreciation.

Diversity & Development: Visa Inc. invests in employee development through Visa University learning pathways and leadership development programs. The company's culture emphasizes innovation and collaboration, with 85% of employees recommending Visa Inc. as a great place to work.

Environmental & Social Impact

Environmental Commitments: Visa Inc. is committed to operating as a responsible, ethical, inclusive, and sustainable company. Climate Strategy: While specific emissions targets are not detailed, climate change is recognized as a corporate responsibility and sustainability (CRS) matter. Supply Chain Sustainability: Engages in supplier engagement, responsible sourcing, and compliance with standards like conflict minerals.

Social Impact Initiatives: Visa Inc. strives to empower people, businesses, and communities.

• Community Investment: Supports philanthropic programs and local community initiatives.
• Product Impact: Visa-branded prepaid cards play an important role in financial inclusion, providing payment solutions to those with limited or no access to traditional banking products.

Business Cyclicality & Seasonality

Demand Patterns: Visa Inc.'s net revenue is directly dependent on the volume and number of payment transactions, which are influenced by consumer, government, and business spending patterns. These patterns can be significantly affected by global economic, political, market, health, and social events or conditions.

• Economic Sensitivity: Adverse macroeconomic conditions, such as recessions, inflation, rising interest rates, and high unemployment, have a direct impact on international commerce and overall spending, thereby affecting Visa Inc.'s payments volume and net revenue. Planning & Forecasting: Not explicitly detailed.

Regulatory Environment & Compliance

Regulatory Framework: Visa Inc. operates under a complex and evolving global regulatory landscape. Industry-Specific Regulations:

• Anti-Corruption, Anti-Money Laundering, Anti-Terrorism, and Sanctions: Subject to laws like the U.S. Foreign Corrupt Practices Act (FCPA), UK Bribery Act, U.S. Bank Secrecy Act, and economic sanctions programs administered by the Office of Foreign Assets Control (OFAC).
• Government-imposed Market Participation Restrictions: Governments in countries such as China, India, Indonesia, Thailand, Vietnam, and South Africa promote domestic payment systems, imposing market access barriers, local ownership requirements, data localization mandates, or domestic processing requirements.
• Interchange Rates and Fees: Regulations in numerous jurisdictions (e.g., U.S. Dodd-Frank Act, EU Interchange Fee Regulation, Reserve Bank of Australia) limit or influence interchange reimbursement rates.
• Internet Transactions: Regulations require monitoring and restriction of certain online payment transactions (e.g., gambling, digital currencies).
• Network Exclusivity and Routing: Regulations like the Dodd-Frank Act and the IFR limit network exclusivity and restrict seller routing choice for debit and prepaid transactions.
• No-surcharge Rules: Enforcement of these rules varies by market and is impacted by litigation, regulation, and legislation.
• Privacy, Data Use, AI, and Cybersecurity: Subject to complex and fragmented data-related regulations globally (e.g., GDPR, EU AI Act, U.S. state-level AI frameworks, CFPB rule on personal financial data rights).
• Supervisory Oversight of the Payments Industry: Subject to financial sector oversight in most operating jurisdictions, including by the Federal Banking Agencies (FBA) and Consumer Financial Protection Bureau (CFPB) in the U.S., and central banks in Canada, Europe (ECB), India, Ukraine, and the UK (Bank of England, Payment Systems Regulator). Trade & Export Controls: Compliance with export restrictions and sanctions (e.g., OFAC) limits business activities in certain countries and with sanctioned entities. Visa Inc. suspended operations in Russia in March 2022 due to economic sanctions. Legal Proceedings: Visa Inc. is a party to numerous litigation matters and regulatory investigations, including the Interchange Multidistrict Litigation (MDL), Consumer Interchange Litigation, VE Territory Covered Litigation, U.S. Department of Justice investigations, U.S. Debit Class Actions, U.S. Securities Class Action, Derivative Cases, Debit Surcharge Class Action, U.S. ATM Access Fee Litigation, EMV Chip Liability Shift, MiCamp Solutions, Mirage Wine + Spirit’s Inc., U.S. Income Tax Litigation, European Commission Acquirer Fees Investigation, German ATM Litigation, and Europe Interchange Litigation. As of September 30, 2025, the accrued litigation balance was $3.033 billion.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 17% in fiscal 2025 and 2024, and 18% in fiscal 2023.
• Geographic Tax Planning: Benefits from a tax incentive in Singapore for its Asia Pacific operating hub, which decreased Singapore tax by $453 million in fiscal 2025.
• Tax Reform Impact: No material tax impact from OECD Pillar Two or U.S. tax legislation enacted in July 2025 in fiscal 2025, and no material impact is expected in future years, though monitoring continues. Tax Examinations: Visa Inc. is currently under examination or in disputes with tax authorities in various jurisdictions, including the U.S. Internal Revenue Service (for fiscal 2016-2018), California (for fiscal 2016-2021), and India (for fiscal 2019-2023). Total gross unrecognized tax benefits were $1.7 billion as of September 30, 2025.

Insurance & Risk Transfer

Risk Management Framework: Visa Inc. indemnifies its financial institution clients for settlement losses due to the failure of other clients to fund obligations. To manage this settlement risk, the company maintains and regularly reviews global settlement risk policies and procedures, which may require clients to post collateral. The maximum daily settlement exposure in fiscal 2025 was $153.4 billion, with an average daily exposure of $91.2 billion. Total collateral held was $8.8 billion as of September 30, 2025. Insurance Coverage: Visa Inc. maintains insurance, but coverage may not sufficiently cover all types of losses or claims. Risk Transfer Mechanisms: Utilizes foreign currency forward contracts to hedge against foreign currency exchange rate fluctuations and interest rate and cross-currency swap agreements to manage interest rate exposure on outstanding senior notes.