Wednesday, April 21, 2010

Visa Declares Quarterly Dividend

Visa Debit logoVisa Inc. Declares Quarterly Dividend

SAN FRANCISCOApril 20 /PRNewswire-FirstCall/ -- Visa Inc. (NYSE: V) today announced that its board of directors had declared a quarterly dividend in the aggregate amount of $0.125 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on June 2, 2010 to all holders of record of the Company's class A, class B and class C common stock as of May 14, 2010.
About Visa:  Visa operates the world's largest retail electronic payments network providing processing services and payment product platforms.  This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and PLUS brands.  Visa enjoys unsurpassed acceptance around the world and Visa/PLUS is one of the world's largest global ATM networks, offering cash access in local currency in more than 170 countries.  For more information, visit www.corporate.visa.com.
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Visa Declares Quarterly Dividend

Visa Debit logoVisa Inc. Declares Quarterly Dividend

SAN FRANCISCOApril 20 /PRNewswire-FirstCall/ -- Visa Inc. (NYSE: V) today announced that its board of directors had declared a quarterly dividend in the aggregate amount of $0.125 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on June 2, 2010 to all holders of record of the Company's class A, class B and class C common stock as of May 14, 2010.
About Visa:  Visa operates the world's largest retail electronic payments network providing processing services and payment product platforms.  This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and PLUS brands.  Visa enjoys unsurpassed acceptance around the world and Visa/PLUS is one of the world's largest global ATM networks, offering cash access in local currency in more than 170 countries.  For more information, visit www.corporate.visa.com.
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The Security Conundrum - Part 1: The Puzzle









What part of "The Puzzle" is Puzzling?

It's really this simple:  Financial transactions must be conducted outside the browser space and the only way to do that is to eliminate typing and replace with "swiping."



Payment card data is being "swiped" every day.  Instead of the bad guys doing the swiping, shouldn't it be you?













TODAY'S TOP STORY
The Security Conundrum - Part 1: The Puzzle

"Today, the threat surface has increased exponentially as a function of the evolutions of commerce beyond face to face transactions, carried over ever more diverse infrastructure elements. If the exposure equation is a function of threat-counts times vulnerability times impact, one can easily appreciate the security conundrum faced by payment systems."


Read More

The Security Conundrum - Part 1: The Puzzle









What part of "The Puzzle" is Puzzling?

It's really this simple:  Financial transactions must be conducted outside the browser space and the only way to do that is to eliminate typing and replace with "swiping."



Payment card data is being "swiped" every day.  Instead of the bad guys doing the swiping, shouldn't it be you?













TODAY'S TOP STORY
The Security Conundrum - Part 1: The Puzzle

"Today, the threat surface has increased exponentially as a function of the evolutions of commerce beyond face to face transactions, carried over ever more diverse infrastructure elements. If the exposure equation is a function of threat-counts times vulnerability times impact, one can easily appreciate the security conundrum faced by payment systems."


Read More

Trusteer Detects Rapid Spread of New Polymorphic Version of Zeus Online Banking Trojan



http://www.trusteer.com

Completely Redesigned Malware Now Targets Firefox Browsers and has Already Infected One in Every 3,000 Computers

NEW YORK--(BUSINESS WIRE)--Trusteer, the leading provider of secure browsing services, today announced that a completely new version of the Zeus (Zbot) password stealing Trojan that targets online banking users has already been detected by the Trusteer Rapport service on one in every 3,000 computers it monitors.



This is an unprecedented rate of distribution for new financial malware code. Version 1.4 of Zeus, also known as version 2, now targets Firefox as well as Internet Explorer browsers and uses advanced polymorphic techniques to avoid antivirus detection.
“We expect this new version of Zeus to significantly increase fraud losses, since nearly 30 percent of internet users bank online with Firefox and the infection rate for this piece of malware is growing faster than we have ever seen before”
Trusteer used its Flashlight remote fraud investigation and mitigation service to link Zeus 1.4 with fraud committed against both commercial and consumer banking customers in North America and the United Kingdom. Flashlight was able to collect new Zeus configurations and code samples from infected computers. This new version of Zeus is completely different than versions 1.2 and 1.3.
The Internet’s Leading Banking Trojan
Zeus is considered the most trusted and robust malware platform for online banking fraud, and has been licensed by numerous criminal organizations to launch targeted attacks against a specific bank's customers. he new version of Zeus targets the growing population of Firefox users, in addition to Internet Explorer. Previous versions were incapable of exploiting Firefox to commit sophisticated online fraud against banks using strong layers of authentication. However, Zeus 1.4 supports HTML injection and transaction tampering for Firefox, two techniques which are effectively used to bypass strong authentication and transaction signing solutions.





“We expect this new version of Zeus to significantly increase fraud losses, since nearly 30 percent of internet users bank online with Firefox and the infection rate for this piece of malware is growing faster than we have ever seen before,” said Amit Klein, CTO of Trusteer and head of the company’s research organization. “Fortunately, the Trusteer Flashlight and Rapport services have enabled us to detect the rapid distribution of Zeus 1.4 early and alert financial institutions. We are recommending they maintain a layered approach to malware blocking and make sure they have the proper detection, investigation, mitigation, and response tools in place.”
Poor Antivirus Detection Rates
Zeus, which is also known as Zbot, WSNPOEM, NTOS and PRG, is the most prevalent financial malware on the Internet today. It infects PCs, waits for the user to log onto a list of targeted banks and financial institutions, and then steals their credentials which are sent to a remote server in real time. It can also modify, in a user’s browser, the genuine web pages from a bank’s web servers to ask for personal information such as payment card number and PIN, one time passwords, etc.
Antivirus detection of Zeus has a poor track record. In a 2009 report based on information gathered from 3 million desktops in North America and the UK Trusteer found that the majority of Zeus infections occur on antivirus protected machines. Specifically, Trusteer found that among Zeus infected machines 55% had up-to-date antivirus protection installed. The population of machines infected with older versions of Zeus is enormous -- one in every 100 computers according to Trusteer research. Zeus 1.4 was specifically crafted to avoid antivirus detection and uses advanced polymorphic techniques, which make antivirus technologies completely blind to it.
About Trusteer
Trusteer, the world’s leading provider of secure browsing services, helps prevent financial malware attacks through its Rapport and Flashlight services. Trusteer Rapport enables online businesses to secure communications with their customers and employees over the Internet and protect data against malware and fraudulent websites. It locks down the browser to secure browser communication and prevents zero-day malware and phishing attacks. Trusteer Flashlight allows organizations to remotely, effectively, and instantly investigate malware-related fraud incidents. Trusteer’s solutions are used by more than 50 leading financial organizations in North America and Europe and by more than 6 million end-users. Trusteer is a privately held corporation led by former executives from RSA Security, Imperva, and Juniper. For more information visit www.trusteer.com.

Contacts

North America:

Marc Gendron PR

Marc Gendron, 781-237-0341

marc@mgpr.net

or

United Kingdon:

Eskenzi PR Ltd.

Neil Stinchcombe, +44 20 71 832 833

neil@eskenzipr.com
Permalink: http://www.businesswire.com/news/home/20100421005587/en/Trusteer-Detects-Rapid-Spread-Polymorphic-Version-Zeus


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Trusteer Detects Rapid Spread of New Polymorphic Version of Zeus Online Banking Trojan



http://www.trusteer.com

Completely Redesigned Malware Now Targets Firefox Browsers and has Already Infected One in Every 3,000 Computers

NEW YORK--(BUSINESS WIRE)--Trusteer, the leading provider of secure browsing services, today announced that a completely new version of the Zeus (Zbot) password stealing Trojan that targets online banking users has already been detected by the Trusteer Rapport service on one in every 3,000 computers it monitors.



This is an unprecedented rate of distribution for new financial malware code. Version 1.4 of Zeus, also known as version 2, now targets Firefox as well as Internet Explorer browsers and uses advanced polymorphic techniques to avoid antivirus detection.
“We expect this new version of Zeus to significantly increase fraud losses, since nearly 30 percent of internet users bank online with Firefox and the infection rate for this piece of malware is growing faster than we have ever seen before”
Trusteer used its Flashlight remote fraud investigation and mitigation service to link Zeus 1.4 with fraud committed against both commercial and consumer banking customers in North America and the United Kingdom. Flashlight was able to collect new Zeus configurations and code samples from infected computers. This new version of Zeus is completely different than versions 1.2 and 1.3.
The Internet’s Leading Banking Trojan
Zeus is considered the most trusted and robust malware platform for online banking fraud, and has been licensed by numerous criminal organizations to launch targeted attacks against a specific bank's customers. he new version of Zeus targets the growing population of Firefox users, in addition to Internet Explorer. Previous versions were incapable of exploiting Firefox to commit sophisticated online fraud against banks using strong layers of authentication. However, Zeus 1.4 supports HTML injection and transaction tampering for Firefox, two techniques which are effectively used to bypass strong authentication and transaction signing solutions.





“We expect this new version of Zeus to significantly increase fraud losses, since nearly 30 percent of internet users bank online with Firefox and the infection rate for this piece of malware is growing faster than we have ever seen before,” said Amit Klein, CTO of Trusteer and head of the company’s research organization. “Fortunately, the Trusteer Flashlight and Rapport services have enabled us to detect the rapid distribution of Zeus 1.4 early and alert financial institutions. We are recommending they maintain a layered approach to malware blocking and make sure they have the proper detection, investigation, mitigation, and response tools in place.”
Poor Antivirus Detection Rates
Zeus, which is also known as Zbot, WSNPOEM, NTOS and PRG, is the most prevalent financial malware on the Internet today. It infects PCs, waits for the user to log onto a list of targeted banks and financial institutions, and then steals their credentials which are sent to a remote server in real time. It can also modify, in a user’s browser, the genuine web pages from a bank’s web servers to ask for personal information such as payment card number and PIN, one time passwords, etc.
Antivirus detection of Zeus has a poor track record. In a 2009 report based on information gathered from 3 million desktops in North America and the UK Trusteer found that the majority of Zeus infections occur on antivirus protected machines. Specifically, Trusteer found that among Zeus infected machines 55% had up-to-date antivirus protection installed. The population of machines infected with older versions of Zeus is enormous -- one in every 100 computers according to Trusteer research. Zeus 1.4 was specifically crafted to avoid antivirus detection and uses advanced polymorphic techniques, which make antivirus technologies completely blind to it.
About Trusteer
Trusteer, the world’s leading provider of secure browsing services, helps prevent financial malware attacks through its Rapport and Flashlight services. Trusteer Rapport enables online businesses to secure communications with their customers and employees over the Internet and protect data against malware and fraudulent websites. It locks down the browser to secure browser communication and prevents zero-day malware and phishing attacks. Trusteer Flashlight allows organizations to remotely, effectively, and instantly investigate malware-related fraud incidents. Trusteer’s solutions are used by more than 50 leading financial organizations in North America and Europe and by more than 6 million end-users. Trusteer is a privately held corporation led by former executives from RSA Security, Imperva, and Juniper. For more information visit www.trusteer.com.

Contacts

North America:

Marc Gendron PR

Marc Gendron, 781-237-0341

marc@mgpr.net

or

United Kingdon:

Eskenzi PR Ltd.

Neil Stinchcombe, +44 20 71 832 833

neil@eskenzipr.com
Permalink: http://www.businesswire.com/news/home/20100421005587/en/Trusteer-Detects-Rapid-Spread-Polymorphic-Version-Zeus


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Oberthur Technologies Provides BGZ With Smart PIN Solution for PIN Delivery via SMS



PARISApril 21, 2010 /PRNewswire-FirstCall/ -- Oberthur Technologies, a leading innovator in the field of payment cards and related services, has worked closely with BGZ bank in Poland to launch Smart PIN, a service which enables PIN codes to be securely delivered to cardholders' mobile phone handsets via SMS.

The Smart PIN solution, developed by Oberthur Technologies, allows cardholders to request a PIN code using just their mobile phone and a secret authentication code shared with the card issuer. The PIN code is then sent via SMS to the cardholder's mobile handset.
The PIN can be received instantly, regardless of the cardholder's physical presence, eliminating the traditional time gap between receiving the card and the PIN, thus providing a more convenient solution for cardholders. BGZ, a bank known for its forward thinking approach, is the first bank in Poland to introduce such an initiative. The bank is currently offering Smart PIN to customers applying for new as well as replacement cards.
Smart PIN also reduces the opportunity for fraud, as man-in-the-middle attacks become virtually impossible. In addition, PIN codes are stored and transported securely and the data is double encrypted.
Aside from improved security, benefits to issuers include the potential to make substantial savings in handling, printing and postage costs. It also allows issuers to track the progress of PIN requests to ensure the PIN code is delivered successfully in each case.
"In comparison with traditional PIN mailers, this solution enables our customers to receive PIN codes in a much faster and safer way" said Grazyna Ciurzynska, Director of the Bank and Credit Card Department at BGZ Bank in Poland. "Smart PIN will contribute towards enhancing the quality of services provided by the Bank"
"We are committed to developing new products and services that can help banks improve their relationship with their cardholders" comments Eric Duforest, Europe Managing Director for Oberthur Technologies' Card Systems Division. "Smart PIN is a revolutionary solution which brings a range of benefits to BGZ as well as to the cardholder, including improved efficiencies and enhanced security."
The interest in Oberthur Technologies' Smart PIN service has been strong since its launch, and other issuers, not only inEurope but also in the rest of the world, are currently in the process of implementing this innovative solution.
About Oberthur Technologies
With sales of 905 million Euros in 2009, Oberthur Technologies is a world leader in the field of secure technologies. Innovation and excellence ensure Oberthur Technologies' strong positioning in its main target markets:
- Card Systems: The world's second largest provider of security
and identification based on smart card technology and associated
services for mobile, payment, transport, digital TV and convergence
markets.
- Identity: Leading international supplier for the manufacture and
personalization of secure identity documents such as passport, identity
card, driving license or health care card - traditional and electronic
- and associated services for both governmental and corporate markets.
- Security printing: A key player in the secure printing industry
specialized in the production of banknotes, checks and other security
documents in more than fifty countries.
- Cash protection: World leader in the emerging market of
intelligent systems to secure cash-in-transit and ATM.

Close to its customers, Oberthur Technologies benefits from an industrial and commercial presence across all five continents.
Oberthur Technologies S.A. is a limited liability company (societe anonyme) registered in France with its registered office at 50 quai Michelet 92 532 Levallois Perret, France. Oberthur Technologies S.A.'s corporate registration number is 340 709 534 R.C.S. Paris.
SOURCE Oberthur Technologies


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Oberthur Technologies Provides BGZ With Smart PIN Solution for PIN Delivery via SMS



PARISApril 21, 2010 /PRNewswire-FirstCall/ -- Oberthur Technologies, a leading innovator in the field of payment cards and related services, has worked closely with BGZ bank in Poland to launch Smart PIN, a service which enables PIN codes to be securely delivered to cardholders' mobile phone handsets via SMS.

The Smart PIN solution, developed by Oberthur Technologies, allows cardholders to request a PIN code using just their mobile phone and a secret authentication code shared with the card issuer. The PIN code is then sent via SMS to the cardholder's mobile handset.
The PIN can be received instantly, regardless of the cardholder's physical presence, eliminating the traditional time gap between receiving the card and the PIN, thus providing a more convenient solution for cardholders. BGZ, a bank known for its forward thinking approach, is the first bank in Poland to introduce such an initiative. The bank is currently offering Smart PIN to customers applying for new as well as replacement cards.
Smart PIN also reduces the opportunity for fraud, as man-in-the-middle attacks become virtually impossible. In addition, PIN codes are stored and transported securely and the data is double encrypted.
Aside from improved security, benefits to issuers include the potential to make substantial savings in handling, printing and postage costs. It also allows issuers to track the progress of PIN requests to ensure the PIN code is delivered successfully in each case.
"In comparison with traditional PIN mailers, this solution enables our customers to receive PIN codes in a much faster and safer way" said Grazyna Ciurzynska, Director of the Bank and Credit Card Department at BGZ Bank in Poland. "Smart PIN will contribute towards enhancing the quality of services provided by the Bank"
"We are committed to developing new products and services that can help banks improve their relationship with their cardholders" comments Eric Duforest, Europe Managing Director for Oberthur Technologies' Card Systems Division. "Smart PIN is a revolutionary solution which brings a range of benefits to BGZ as well as to the cardholder, including improved efficiencies and enhanced security."
The interest in Oberthur Technologies' Smart PIN service has been strong since its launch, and other issuers, not only inEurope but also in the rest of the world, are currently in the process of implementing this innovative solution.
About Oberthur Technologies
With sales of 905 million Euros in 2009, Oberthur Technologies is a world leader in the field of secure technologies. Innovation and excellence ensure Oberthur Technologies' strong positioning in its main target markets:
- Card Systems: The world's second largest provider of security
and identification based on smart card technology and associated
services for mobile, payment, transport, digital TV and convergence
markets.
- Identity: Leading international supplier for the manufacture and
personalization of secure identity documents such as passport, identity
card, driving license or health care card - traditional and electronic
- and associated services for both governmental and corporate markets.
- Security printing: A key player in the secure printing industry
specialized in the production of banknotes, checks and other security
documents in more than fifty countries.
- Cash protection: World leader in the emerging market of
intelligent systems to secure cash-in-transit and ATM.

Close to its customers, Oberthur Technologies benefits from an industrial and commercial presence across all five continents.
Oberthur Technologies S.A. is a limited liability company (societe anonyme) registered in France with its registered office at 50 quai Michelet 92 532 Levallois Perret, France. Oberthur Technologies S.A.'s corporate registration number is 340 709 534 R.C.S. Paris.
SOURCE Oberthur Technologies


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Visa Inc. to Acquire CyberSource for $2 Billion



Visa Inc. to Acquire CyberSource to Accelerate eCommerce Growth

Strengthens Visa's Leadership in Global eCommerce by Expanding Online Payment, Fraud and Security Management Capabilities



Enables Visa to Offer New and Enhanced Online Fraud Prevention Services to Merchants, Financial Institutions and Consumers




SAN FRANCISCO and MOUNTAIN VIEW, Calif., April 21, 2010



Visa Inc. (NYSE: V) ("Visa") and CyberSource Corporation (Nasdaq: CYBS) ("CyberSource") today announced that they have entered into a definitive agreement for Visa to purchase CyberSource, a leading provider of electronic payment, risk management and payment security solutions to online merchants at a price of $26.00 per share, or total consideration of approximately $2.0 billion to be paid with cash on hand.
CyberSource is an established industry leader that plays a role in processing approximately 25 percent of all eCommerce dollars transacted in the United States. The company serves more than 295,000 merchants through its CyberSource and Authorize.Net branded solutions. CyberSource clients include British Airways, Home Depot, Facebook, Google and many small businesses.
The acquisition of CyberSource will result in a compelling combination whose assets and expertise are expected to drive long-term growth by:
  • Accelerating the growth of the eCommerce category thereby also increasing the usage of Visa debit, prepaid and credit products for online purchases.

  • Drawing on Visa's financial institution relationships and global presence to more rapidly drive international expansion of CyberSource's products and services. Today the majority of CyberSource's revenues are generated in the United States, leaving tremendous opportunity for global growth.

  • Building on CyberSource's relationships with merchants to expand the adoption and enhance the functionality of other Visa eCommerce solutions such as Rightcliq.

  • Delivering best-in-class fraud management services to accelerate adoption of CyberSource solutions.

  • Increasing adoption of CyberSource's secure payment data hosting solutions to address a growing merchant need.

These benefits will be realized by merchants and financial institutions alike. Together, Visa and CyberSource will help merchants increase revenue through global growth while minimizing monetary loss from fraud and provide them with fast and efficient connectivity to multiple payment networks, including Visa. For financial institutions acquirers, Visa will deliver added value by providing new business referrals from eCommerce merchants.
"Online commerce continues to grow rapidly, and this acquisition will enable Visa to offer new and enhanced services that will better meet the growing demand among merchants globally for robust, secure online payment processing capabilities which in turn will grow the entire eCommerce category," said Joseph W. Saunders, Chairman and CEO of Visa Inc. "With CyberSource, we are adding a new suite of leading eCommerce capabilities and experience in addressing eCommerce merchant needs. And, as eCommerce increasingly migrates to mobile devices, we believe the combination of Visa and CyberSource technology and services will position Visa to lead in mobile eCommerce."
The two companies are a proven team, having partnered since 1999, and currently collaborate on risk models built into CyberSource's automated fraud management solutions.
"By joining forces with the world's foremost payments company, we will have the opportunity to utilize Visa's regional expertise and global presence to drive international adoption of CyberSource in key geographies," said Michael Walsh, President and CEO of CyberSource Corporation.
"We are excited to build on the existing relationship we have with Visa and extend the reach and capabilities of our eCommerce payment platform for small businesses and international brands around the world," said William S. McKiernan, Executive Chairman and Founder of CyberSource.
"The acquisition of CyberSource aligns with Visa's long-term strategic plan to identify and invest in opportunities today that will drive future growth and deliver enhanced value to Visa and our clients," said Saunders.
Visa expects this transaction to be approximately $0.04 to $0.05 dilutive to its fiscal fourth quarter 2010 earnings per share on a GAAP basis, due to acquisition-related amortization and one-time transaction costs. Visa expects this transaction to be slightly dilutive to its fiscal full-year 2011 earnings per share on a GAAP basis, primarily related to amortization of intangible assets.
CyberSource's President and CEO, Michael Walsh, will continue to oversee CyberSource's operations. CyberSource's Executive Chairman and Founder, William S. McKiernan, will join Visa as an Executive Advisor to assist in the integration of the two businesses.
The transaction is subject to customary closing conditions, including approval by the stockholders of CyberSource and required regulatory approvals. The transaction, which has been approved by the Visa and CyberSource boards of directors, does not require a Visa stockholder vote and is expected to close in Visa's fourth fiscal quarter of 2010.
Visa and CyberSource will host a conference call today at 5:30 a.m. Pacific time (8:30 a.m. Eastern time) to discuss the transaction. The dial-in information for the call is 888-790-4410 (within the United States) or 773-756-0127 (international). The conference passcode is GATEWAY. A replay of the call will be available until May 19 and can be accessed by dialing 800-925-4998 (within the United States) or 402-220-4330 (international). The live call and replay, along with supporting materials, can also be accessed through the Investor Relations section of Visa's website at www.investor.visa.com.

About Visa

Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks--VisaNet--that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.

About CyberSource

CyberSource solutions enable electronic payment processing for Web, call center, and POS environments. CyberSource also offers industry-leading risk management and payment security solutions for merchants accepting card-not-present transactions. CyberSource Professional Services designs, integrates, and optimizes commerce transaction processing systems. Approximately 295,000 businesses use CyberSource solutions, including half the companies comprising the Dow Jones Industrial Average. The company is headquartered in Mountain View, California, and has sales and service offices in Japan, Singapore, the United Kingdom, and other locations in the United States including Bellevue, Washington and American Fork, Utah. For more information on CyberSource please visit www.CyberSource.com or email info@CyberSource.com. For more information on Authorize.Net small business solutions, please visit www.authorize.netor email sales@authorize.net.


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Visa Inc. to Acquire CyberSource for $2 Billion



Visa Inc. to Acquire CyberSource to Accelerate eCommerce Growth

Strengthens Visa's Leadership in Global eCommerce by Expanding Online Payment, Fraud and Security Management Capabilities



Enables Visa to Offer New and Enhanced Online Fraud Prevention Services to Merchants, Financial Institutions and Consumers




SAN FRANCISCO and MOUNTAIN VIEW, Calif., April 21, 2010



Visa Inc. (NYSE: V) ("Visa") and CyberSource Corporation (Nasdaq: CYBS) ("CyberSource") today announced that they have entered into a definitive agreement for Visa to purchase CyberSource, a leading provider of electronic payment, risk management and payment security solutions to online merchants at a price of $26.00 per share, or total consideration of approximately $2.0 billion to be paid with cash on hand.
CyberSource is an established industry leader that plays a role in processing approximately 25 percent of all eCommerce dollars transacted in the United States. The company serves more than 295,000 merchants through its CyberSource and Authorize.Net branded solutions. CyberSource clients include British Airways, Home Depot, Facebook, Google and many small businesses.
The acquisition of CyberSource will result in a compelling combination whose assets and expertise are expected to drive long-term growth by:
  • Accelerating the growth of the eCommerce category thereby also increasing the usage of Visa debit, prepaid and credit products for online purchases.

  • Drawing on Visa's financial institution relationships and global presence to more rapidly drive international expansion of CyberSource's products and services. Today the majority of CyberSource's revenues are generated in the United States, leaving tremendous opportunity for global growth.

  • Building on CyberSource's relationships with merchants to expand the adoption and enhance the functionality of other Visa eCommerce solutions such as Rightcliq.

  • Delivering best-in-class fraud management services to accelerate adoption of CyberSource solutions.

  • Increasing adoption of CyberSource's secure payment data hosting solutions to address a growing merchant need.

These benefits will be realized by merchants and financial institutions alike. Together, Visa and CyberSource will help merchants increase revenue through global growth while minimizing monetary loss from fraud and provide them with fast and efficient connectivity to multiple payment networks, including Visa. For financial institutions acquirers, Visa will deliver added value by providing new business referrals from eCommerce merchants.
"Online commerce continues to grow rapidly, and this acquisition will enable Visa to offer new and enhanced services that will better meet the growing demand among merchants globally for robust, secure online payment processing capabilities which in turn will grow the entire eCommerce category," said Joseph W. Saunders, Chairman and CEO of Visa Inc. "With CyberSource, we are adding a new suite of leading eCommerce capabilities and experience in addressing eCommerce merchant needs. And, as eCommerce increasingly migrates to mobile devices, we believe the combination of Visa and CyberSource technology and services will position Visa to lead in mobile eCommerce."
The two companies are a proven team, having partnered since 1999, and currently collaborate on risk models built into CyberSource's automated fraud management solutions.
"By joining forces with the world's foremost payments company, we will have the opportunity to utilize Visa's regional expertise and global presence to drive international adoption of CyberSource in key geographies," said Michael Walsh, President and CEO of CyberSource Corporation.
"We are excited to build on the existing relationship we have with Visa and extend the reach and capabilities of our eCommerce payment platform for small businesses and international brands around the world," said William S. McKiernan, Executive Chairman and Founder of CyberSource.
"The acquisition of CyberSource aligns with Visa's long-term strategic plan to identify and invest in opportunities today that will drive future growth and deliver enhanced value to Visa and our clients," said Saunders.
Visa expects this transaction to be approximately $0.04 to $0.05 dilutive to its fiscal fourth quarter 2010 earnings per share on a GAAP basis, due to acquisition-related amortization and one-time transaction costs. Visa expects this transaction to be slightly dilutive to its fiscal full-year 2011 earnings per share on a GAAP basis, primarily related to amortization of intangible assets.
CyberSource's President and CEO, Michael Walsh, will continue to oversee CyberSource's operations. CyberSource's Executive Chairman and Founder, William S. McKiernan, will join Visa as an Executive Advisor to assist in the integration of the two businesses.
The transaction is subject to customary closing conditions, including approval by the stockholders of CyberSource and required regulatory approvals. The transaction, which has been approved by the Visa and CyberSource boards of directors, does not require a Visa stockholder vote and is expected to close in Visa's fourth fiscal quarter of 2010.
Visa and CyberSource will host a conference call today at 5:30 a.m. Pacific time (8:30 a.m. Eastern time) to discuss the transaction. The dial-in information for the call is 888-790-4410 (within the United States) or 773-756-0127 (international). The conference passcode is GATEWAY. A replay of the call will be available until May 19 and can be accessed by dialing 800-925-4998 (within the United States) or 402-220-4330 (international). The live call and replay, along with supporting materials, can also be accessed through the Investor Relations section of Visa's website at www.investor.visa.com.

About Visa

Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks--VisaNet--that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.

About CyberSource

CyberSource solutions enable electronic payment processing for Web, call center, and POS environments. CyberSource also offers industry-leading risk management and payment security solutions for merchants accepting card-not-present transactions. CyberSource Professional Services designs, integrates, and optimizes commerce transaction processing systems. Approximately 295,000 businesses use CyberSource solutions, including half the companies comprising the Dow Jones Industrial Average. The company is headquartered in Mountain View, California, and has sales and service offices in Japan, Singapore, the United Kingdom, and other locations in the United States including Bellevue, Washington and American Fork, Utah. For more information on CyberSource please visit www.CyberSource.com or email info@CyberSource.com. For more information on Authorize.Net small business solutions, please visit www.authorize.netor email sales@authorize.net.


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