Research Study on Risks in Visa - GRM Institute

Research Study on Risks in Visa

Both Shreyansh Mishra and Anuj Khebde attended the Global Risk Management Institute and completed the Risk Management course. Shreyansh Mishra has a bachelor’s degree in commerce, while Anuj Khebde has a degree in mechanical engineering. Before deciding to pursue a career in risk management in India, both of these GRMI graduates came from very different backgrounds.




  • Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States.​
  • It was launched in September 1958 by Bank of America (BofA) as the BankAmericard credit card program​
  • Global payments technology company working to enable consumers, businesses, banks, and governments to use digital currency.​
  • Connect consumers, businesses, banks, and governments in more than 200 countries and territories worldwide.​
  • Visa does around 1,700 transactions per second on average.


  • 50 years ago, Visa had a vision: To provide consumers, businesses, and governments around the world with a better form of payment. The technology behind this vision is VisaNeta proprietary transaction processing network.​

VisaNet supports economic empowerment to people, businesses, banks, and governments in 200 countries and territories. 

Business Strategy
  • Visa’s strategy is to aggressively expand its presence in contactless payments, e-commerce, and other digital vehicles.​

  • VISA business model is very different from a traditional business model.​
  • VISA is a great example of a “Multi-sided Platform” business model pattern. The platform induces “cross-side” network effects. ​

The more the cardholders use VISA cards, the more the merchants will accept it and vice-versa.


How Visa Inc. works


VISA is a Technology company providing global payment solutions to the banks.​

 Its payment product platforms are used by the banks to develop credit and debit card programs for their customers.​

VISA does not issue credit cards or extends credit to the consumers.​

Instead, it operates an “Open-Loop Payments Network” to manage the exchange of information between different financial institutions.​


  • Cardholders are the individuals​
  • Issuers are the financial institutions that issue Visa cards to the cardholders​
  • Merchants are the businesses that accept Visa cards​
  • Acquirers are the financial institutions that solicit merchants to accept Visa cards. ​



Business Model Canvas




SWOT Analysis



Visa products and services​


While best known for its Visa credit card used by millions of consumers, the company provides an unusually broad range of services. That includes authorization, clearing, and settlement services for financial institutions and merchants; and credit, debit, and prepaid card services to consumers and businesses.​​

  1. Products: Visa-branded Credit cards, Debit cards, Commercial Cards, and Prepaid cards; Mobile and Money Transfer products​
  2. Services: Authorization, Clearing, and Settlement services; Mobile financial services, such as mobile payments, money transfer, and top-up services


How Visa makes money?​​
  • Visa makes its profits by selling its services and working as a middleman between financial institutions merchants and customers​
  • Visa also makes money on payment volumes transaction processing ​
  • Offers Value-added services such as risk management, debit issuer processing, loyalty services, dispute management, and value-added information services.​


To understand how it works let’s see:


Read the full case study here: Risks in Visa by Anuj and Shreyansh


This report has been produced by students of Global Risk Management Institute for their own research, classroom discussions and general information purposes only. While care has been taken in gathering the data and preparing the report, the student’s or GRMI does not make any representations or warranties as to its accuracy or completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied. References to the information collected have been given where necessary.

GRMI or its students accepts no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained in this report. This report does not constitute advice of any kind.


Design and Developed by KodeForest @ All Rights Reserved by KodeForest