Cover:
Visa: Wherever Technology Goes, We're There Paving the Payment Technology Super Highway

Inside:
In Payment Technology, Visa Leads the Way
Every Visa payment card transaction involves a Visa Issuer, Acquirer, merchant, and cardholder. At Visa, the needs of each of these participants are what drives us to seek, create, and deliver the latest payment card technology available anywhere in the world. The Visa mission is to create more value for Issuers, Acquirers, merchants, and cardholders by developing and bringing to market payment card products that meet and exceed the requirements and goals of all parties involved in Visa transactions.

Staying ahead of the competition
When it comes to competing — and especially helping financial institutions become the leaders in their markets — Visa offers the technology, the know-how, and the recognition to keep Issuers, Acquirers, and merchants ahead of the competition.

The sheer number of Visa-branded cards in circulation — over one billion cards around the world, more than any other payment card in history — offers dramatic testimony to the revenue potential that comes with the Visa brand.

And today, as payment technology advances rapidly, Visa stands ready to transform the very latest developments into valuable payment card features and benefits. Visa payment card solutions meet the broadest range of needs — from the universally recognized Visa Classic card to our premium Visa Gold, Visa Platinum, Visa Signature, and Visa Infinite cards; the convenient Visa check card; Visa Commercial Card Products, including Visa Business credit and check cards, Visa Corporate, Visa Purchasing, Visa Commercial, and Visa Fleet; and innovative products like the Visa Payroll card, Visa Buxx for teens, and multi-application chip-based Visa smart cards.

Cutting-Edge Products for Every Need
Visa offers both credit and non-credit payment products, all designed to meet the needs of specific target markets. As a result, financial institutions can design their product line-ups based on their customers' individual financial needs and desires. All Visa products take advantage of Visa technology leadership in the payment card industry — offering one of the best payment convenience and ease-of-use benefits available in the world.

Visa Stored-Value Products
These prepaid, reloadable cards are high-tech, easy-to-use payment solutions that enable Visa Issuers to offer attractive payment card options.

• Visa Payroll is a convenient new service that Issuers can offer to their corporate customers. This pre-paid, host-based Visa card is a highly cost-effective alternative to traditional, paper-based payroll operations, and migrates previously untapped consumer spending from cash to cards. Visa Payroll helps employers simplify and reduce costs associated with payroll processing, while helping employees save on check-cashing fees and providing the safety, prestige, and convenience of carrying a Visa card.
• Visa Buxx is the pre-paid stored-value teen card that comes with a full range of parental controls, including pre-determined spending values and the ability to go online to review how much has been spent and on what. It's a sensible tool that can help teens learn financial responsibility, and a safe, convenient alternative to cash that's recognized everywhere Visa cards are accepted. In addition, unlike credit cards, purchases made with Visa Buxx are deducted immediately from the card's available balance.

• Visa TravelMoney is a prepaid magnetic-stripe card that enables cardholders to safely carry dedicated travel funds and easily access them in local currency 24 hours a day at all Visa/PLUS® ATMs worldwide. No deposit relationship is required to obtain the card. And because the cards are not embossed, they can be instantly issued at any Issuer's branch location.

The Smart Visa Program
A unique identity and capability
The Smart Visa Program provides Issuers with an identity and technology platform they can use to bring technology-rich smart cards to market. The program's objective is to increase the impact of Issuers' marketing efforts, reduce costs and time to market, increase the ability to effectively compete, and promote ways for Issuers to customize and differentiate their product offerings.

All Smart Visa products provide a chip-based payment application, enable secure Web site access, offer chip-based payer authentication online, and will soon utilize post-issuance downloading of new applications.

• The Smart Visa Identity can be incorporated into any Visa product that meets certain minimum functionality requirements. That means Issuers can create chip-based Visa cards offering a new level of payment safety, security, and convenience, whether used offline or online. And, because Visa has laid the technology groundwork, Issuers can focus on the strategic role that smart cards can play in their overall business.
• The Smart Visa Technology Platform is a set of optional tools developed to help reduce cost and speed time to market for multi-application Visa chip cards. The platform delivers three pre-packaged components that can be used to meet the Smart Visa Program minimum requirements: Smart Visa Payment, Smart Visa Access, and Smart Visa Loyalty — plus the tools Issuers need to get started.

Visa Corporate Card
The Visa Corporate card is a convenient method for medium-to-large-sized companies to pay for their employees' travel needs. At the same time, it serves as a powerful management tool that provides more detailed usage data than a Visa consumer card. For example, purchasing an airline ticket using a Corporate card provides detailed itinerary information, such as airline, origination/destination city, and class of travel. Multiple categories of reporting are another important feature of Visa Corporate, and include spending analysis, compliance monitoring, and vendor analysis — valuable information that allows companies to negotiate better rates with their travel vendors and monitor employee compliance with company travel policy.

Visa Credit and Check Card Products
Visa credit and check card products meet a broad range of needs in different market segments. To provide the most attractive products, Visa is constantly developing new enhancements to its card programs to provide the utmost in cardholder convenience and practicality. Visa Classic, Gold, and Platinum cards come with core and optional services such as the Visa International Service Center (VISC), Auto Rental Insurance, Emergency Cash/Card Replacement, and Year-End Summary Statement. Visa Signature and Infinite cards add higher-level services such as Roadside Dispatch and Car Rental Privileges.

In addition, the Visa Zero Liability Policy covers all Visa consumer cards, virtually eliminating cardholder liability in cases of Visa card fraud committed over the Visa system, whether cards are used in stores, restaurants, or other establishments, or for Internet transactions.

• Visa Classic is the industry standard for mass-market and entry-level cards, and is often used for affinity and co-branded programs because of its great flexibility.
• Visa Gold is an ideal upgrade for solid-performing Visa Classic cardholders, offering more security and preferred service. Consumers rate it the best overall gold card by a margin of more than two-to-one over the next-closest competitor.
• Visa Platinum offers even more recognition and value, and is the perfect upgrade for customers whose spending and payment behavior demonstrate financial responsibility. The typical Platinum cardholder earns more than $67,000 a year, is an active user, and is likely to revolve.
• Visa Signature is aimed at customers with high annual household incomes, offering no preset spending limit plus an exceptional rewards program. It offers Issuers great opportunities for co-branding with airlines, since many cardholders in this segment are frequent travelers.
• Visa Infinite offers the ultimate in service, convenience, and prestige, and can be used to reward customers who have remained loyal to their institution and financially responsible over time. Designed to capture the top of the market by building strong relationships with the wealthiest segment of customers, those who carry this premium card enjoy exceptional benefits and privileges, including no preset spending limit.
• Visa check card is the nation's leading debit card, enabling cardholders to make purchases at Visa acceptance locations and access cash at Visa ATMs around the world, and have transaction amounts deducted directly from their funds on deposit. A financial institution can offer the card by having the Visa logo added to an existing ATM card.

Visa Secure Commerce: Securing the Internet Channel
Numerous studies indicate that consumers are reluctant to shop online because of concerns about security. If e-commerce is to flourish and develop into a truly viable, mass-market channel, Visa believes it is absolutely critical to have the proper security measures in place.

That's why Visa has launched Visa Secure Commerce, an initiative designed to give cardholders a safe and convenient shopping experience and, ultimately, increase transaction volume for Visa Issuers, Acquirers, and merchants. Visa Secure Commerce includes a series of online security measures that, together, protect cardholders and merchants alike, from the start of an online transaction to fulfillment of an order. This security initiative combines Visa's years of expertise in preventing and detecting fraud, and managing risk, with a set of strategic alliances and partnerships that protect consumers and enhance the revenue-generating ability of merchants and financial institutions. Visa Secure Commerce has several components, including:

• Zero Liability coverage that protects Visa cardholders against any monetary losses resulting from fraudulent use of their credit and debit cards, both on the Internet and in the physical world.
• Visa Cardholder Information Security Program (CISP), the industry's first set of standards designed to insure the security of cardholder payment information. CISP includes 12 security guidelines for Visa merchants to implement and ensure they maintain state-of-the-art security systems. These guidelines include steps such as installing firewalls, encrypting all stored and transmitted payment information, restricting data access to "need-to-know" personnel, and maintaining around-the-clock physical security.
• Verified by Visa, a highly effective way to verify a cardholder's identity online. Verifying a Visa card's ownership at the point of sale is one of the best ways to stop fraud and potential losses. Verified by Visa (also known as Visa Payer Authentication) utilizes the 3D Secure technical application to authenticate a cardholder during an online transaction through the use of a password, in much the same way a signature verifies a cardholder when shopping in the physical world. The service is designed to significantly reduce unauthorized card usage and reduce customer disputes and fraud losses for Issuers and e-merchants.

Visa 2001/2002 Sponsorships and Promotions
Visa sponsorships give Issuers more ways to attract new cardholders and generate incremental spending. And, throughout the year, Visa promotional programs provide opportunities to boost awareness and increase sales. The high visibility of Visa's event and sponsorship marketing, plus promotional activities, puts the Visa brand squarely in the global spotlight, creating valuable new business opportunities.

Salt Lake 2002 Olympic Winter Games
Launched in November 2000, the "You've Got What It Takes" campaign promotes the Visa worldwide sponsorship of the Salt Lake 2002 Olympic Winter Games and America's Olympic Team. The campaign consists of three national programs:

• The first is a cause-related program that promotes Visa support of America's Olympic athletes and hopefuls.
• The second is a sweepstakes offering Visa cardholders a chance to win a trip to the 2002 Olympic Winter Games.
• The third is another sweepstakes called "Bring Home the Gold" which offers Visa cardholders the chance to win $10,000 every time America wins a Gold medal at the Games.

To make it easy for Issuers to participate in "You've Got What It Takes," Visa provides a variety of marketing materials, including statement inserts and in-branch signage. For Acquirers, statement inserts and in-store signage are available to help merchants boost sales and customer goodwill.

For information on official sweepstakes rules, please call 1-800-235-3580.

Visa Fourth Quarter Promotion
Every year, Visa develops a large-scale national promotion for the fourth quarter to help Issuers and merchants build sales volume and increase year-end profits. The Fourth Quarter promotion for 2001 — Visa Magic Moments — is back by popular demand for 2002, after its highly successful and enthusiastic reception in 1998 and 1999. Once again, Visa's most exciting and compelling promotion ever is designed to generate greater-than-ever card usage.

Visa Magic Moments is unique in the marketplace: From November 18 through December 26, 2001, there will be a randomly selected one-second "Magic Moment" when all U.S.-issued Visa card purchases will be free — regardless of the amount. A cardholder wins if the processing date and time for their Visa purchase matches the one-second "Magic Moment." Cardholders with winning purchases of $599.99 and under will receive a credit on their next possible statement. Those with winning purchases of $600 and over will receive a check. No purchase obligation is necessary to enter or win.

Issuers benefit every time cardholders use their Visa cards to automatically enter the sweepstakes. In 1998 and 1999, Visa Magic Moments Issuer and merchant participation was strong, and more than 35,000 cardholders won their purchases, representing a combined total value of more than $2.7 million.

To help Issuers successfully execute and communicate the Visa Magic Moments promotion, Visa will handle program logistics and provide the necessary materials. Visa Magic Moments will be supported by a national radio campaign, mall signage, and online advertising designed to increase cardholder awareness nationwide, as well as a comprehensive public relations campaign to generate local awareness and personalize the promotion for cardholders.

For complete Program Official Rules, including entry without purchase, call 1-800-266-6712.

Visa Functional Support — the Infrastructure Issuers and Acquirers Need for Success

Direct Exchange: the world's largest private financial payments system
Direct Exchange is a revolutionary financial payments network developed by Visa in partnership with Sun Microsystems and Cisco Systems. Integrating the benefits of open technology with the power of the Internet, it enables Visa Issuers, Acquirers, and endpoints to launch new payment technologies that provide universal-commerce capabilities. The power of Direct Exchange lies its superior capabilities that can process $60 million per hour, or more than $3 trillion a year. And up to 10,000 messages per second and 100 billion transactions a year — twice today's volume.

Additional Direct Exchange advantages include the convenience of a single point of connectivity, easy scalability to avoid network changes, and unparalleled security to protect Issuers' information assets.

Direct Exchange lets Issuers customize payment products and implement new technologies fast and cost-effectively. It allows merchants to target their best customers and better manage risk and security. And it helps Acquirers build volume by supporting new transaction types.

The Numbers Explain Why It Pays to Partner with Visa
Visa offers you the power of one of the most recognized brands in the world. When you partner with Visa, you benefit from the advantages of consumer convenience and state-of-the-art processing and risk control technologies. How strong a presence is Visa in today's market? The numbers speak for themselves:

Highest number of cards in U.S.

• As of March 31, 2001, 354.7 million Visa cards were in circulation, compared to 250 million for MasterCard, 34.2 million for American Express, 50 million for Discover, and 1.7 million for "other" cards.

Biggest U.S. card volume share

• Visa commands a 52 percent share of the market, while MasterCard has 27 percent, American Express has 14.4 percent, Discover has 5.7 percent, and Diners Club has 0.8 percent.

Best card ratings

• As "Overall Best Card" 61 percent of cardholders rate Visa #1, compared to 20 percent for MasterCard, 9 percent for American Express, and 7 percent for Discover.
• As "Best Overall Gold Card" 61 percent rate Visa #1, compared to 23 percent for MasterCard and 18 percent for American Express.
• As "Best Overall Platinum Card" 57 percent rate Visa #1, compared to 19 percent for MasterCard, 13 percent for American Express, and 7 percent for Discover.

Best card for shopping

• Research shows that consumers have a very clear perception of Visa's unsurpassed merchant acceptance, with 68 percent saying Visa is accepted by more merchants, compared to 23 percent for MasterCard, 6 percent for American Express, and 1 percent for Discover.

Best card for personal and family shopping

• Cardholders rate Visa the "Best Card for Personal and Family Shopping," with 57 percent rating Visa as #1, compared to 20 percent for MasterCard, 14 percent for Discover, and 7 percent for American Express

Best card for Internet shopping

• Consumers clearly know which brand to use for e-commerce transactions, with 44 percent rating Visa #1 as the "Leader in Offering Means to Pay via the Internet," compared to 15 percent for MasterCard, 8 percent for American Express, and 2 percent for Discover.

Partner with Visa: The World's Payment Technology Leader
Clearly the leading force in transforming the newest technologies into practical, convenient, and easy-to-use payment cards, Visa offers some of the most innovative products on the market, backed by the world's most advanced and reliable processing system. And when you look at the numbers and recognize the strength and value offered by Visa technology, selecting the right payment brand partner is easy — it's Visa.

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