Visa Spotlights Payment Card Incentive Programs Fostering Economic Growth in Emerging Markets; Governments Offer Payment Card Incentives to Increase Transaction Transparency, Tax Revenue and Deposits

Today, at the 8th annual Visa International Government
Services Conference in Buenos Aires, Visa is showcasing how its
government partnerships have significantly contributed to the
realization of economic development goals for emerging and
industrialized nations around the world.
During the conference, the head of the Argentinean Federal
Administration of Public Revenue discusses the contributions that
payment card incentive programs have made enhancing economic
transparency. Governments in Latin America and the Caribbean (LAC)
have implemented payment card incentive programs similar to an
initiative implemented successfully in South Korea to restore tax
revenues after the economic crisis of 1997. The Korean government
specifically mandated policies to promote payment card usage among
consumers, businesses and merchants. Over time, these measures were
successful in increasing Korean national tax revenue, while
contributing to overall economic growth.
"As the leading global payments brand, Visa works with governments
to create targeted incentive programs that produce positive economic
impact using best practice principles from worldwide experience," said
Aliza Knox, senior vice president, Visa Commercial, Visa
International. "The substance of this year's conference serves as a
testament to the success of Visa and members in providing payment
products and services that help governments and the public sector to
achieve procure-to-pay automation, improve efficiency and transparency
in the payment process, and meet economic growth objectives."
Governments in Argentina, Colombia, Costa Rica, the Dominican
Republic, Mexico, and Uruguay have implemented incentives that drive
payment card usage to provide greater transparency of financial
transactions and improve tax collection. Incentives have ranged from
lotteries to VAT rebates, as outlined below:

-- In Argentina, since 2002, consumers who purchase goods and
services using credit and debit cards receive a refund of
three and five basis percentage points, respectively, off of a
VAT tax of 21 percent.

-- In Colombia, since 2004, consumers who purchase goods and
services using credit and debit cards receive a refund of two
percentage points off of a VAT tax of 16 percent.

-- In Uruguay, since early 2006, tax authorities offer VAT
rebates of up to nine percentage points off of a 23 percent
VAT tax rate in the tourism sector (including restaurants and
car rentals).

-- In addition, in Mexico, since 2003, there has been a
high-profile lottery - El Boletazo - in place to promote
payment card usage among consumers.

Payment card incentive programs are only one of many different
types of government initiatives that are being presented and discussed
during the Visa International Government Services Conference. With
this year's conference theme, "Modernizing through Innovation," the
event provides the platform for 25 internationally recognized leaders
and authorities on government payment services to share their
experiences using card technology to bring automation to their
operations. A number of governments and Visa members are showcasing
their programs, while industry experts from the International Finance
Corporation (IFC), the private sector arm of the World Bank, and
Harvard University, are imparting their insights on
information-sharing and change management in government, respectively.
The Visa International Government Services Conference focuses on
Visa's state-of-the-art payment solutions and how governments have
leveraged them to develop innovative programs for modernizing
economies and improving the quality of life for citizens. Visa payment
solutions effectively streamline the processes by which governments
make and receive payments to and from businesses and consumers.

The two-day program features:

-- The Comptroller General, Ministry of Finance, Government of
Thailand discussing the creative use of pre-authorized cards
to facilitate a unique expense management program that tracks
usage, enforces travel expense policy and minimizes loss.

-- A representative of the Mexican Secretary of Economy
discussing how the partnership with commercial banks has led
to a successful program for administering government-backed
small business loans through Visa cards to promote economic
development.

-- A representative from the Kent County Council in the United
Kingdom outlining a new government procurement card initiative
that streamlines the distribution of government aid payments
to reduce unnecessary bureaucracy while enhancing control.

-- The Director General of the Administrator of Social Subsidies
for the Dominican Republic discussing the Solidarity Card
program, outlining how payment cards can streamline and ensure
the distribution of monetary aid while providing citizens with
a powerful new purchasing tool.

-- An internationally recognized professor of public management
at Harvard University sharing insights about thriving in a
climate of change from his role in the Clinton
administration's "reinventing government" program.

-- The general manager of Peru's acquiring company for Visa,
Visanet del Peru, outlining how Peruvian government entities
are simplifying incoming payments by accepting Visa as a form
of payment for a variety of government services.

-- A director at the U.S. Department of Defense discussing how
multi-function SMART card technology has been leveraged to
build an integrated system for managing building access and
other functions.

-- An International Finance Corporation (IFC) retail risk and
credit bureau advisor for LAC discussing the partnership
between Visa and IFC to develop credit bureau networks in
developing countries to improve the availability of financing
to consumers and small businesses.

-- An advisor to the government of the province of Buenos Aires
sharing the success story of using special purpose BAPRO
COPRES Visa cards to manage fleet-related expenses.

This year, Visa's International Government Services Conference is
estimated to draw more than 200 attendees from 23 countries, which
includes national, regional, and local government officials,
commercial banking officers, and executives from Visa and its
partners.

Notes to Editors:

About the Visa International Government Services Conference
(IGSC): The Visa International Government Services Conference is held
annually to showcase successful Visa government programs and to share
best practices for launching and optimizing card programs related to
procurement, travel, government benefits distribution, and more. The
IGSC provides an opportunity for government officials, Visa
specialists, representatives from Visa member financial institutions,
and industry experts from around the world to network and discuss new
ways to work together to serve the needs of governments, economies,
and their citizens. Visit http://corporate.visa.com/pd/igsc.jsp for
more information.

About Visa: Visa connects cardholders, merchants and financial
institutions through the world's largest electronic payments network.
Visa products allow buyers and sellers to conduct commerce with ease
and confidence in both the physical and virtual worlds. As an
association owned by 20,000 member financial institutions, Visa is
committed to the sustained growth of electronic payment systems to
support the needs of all stakeholders and to drive economic growth.
For more information, visit www.corporate.visa.com.

About Visa Commercial: Visa Commercial provides payment products
with information management and services designed to help businesses
and the public sector achieve greater efficiency, control and
convenience. By integrating with an organization's financial system,
Visa Commercial payment products and services automate manual
processes, reduce administrative activities and eliminate paper-based
processes. Visa Commercial ensures compliance with an organization's
policy and provides spending control, greater insight into
expenditures, and cash flow management for virtually every type of
business expense and segment, including small business, middle-market,
large enterprises, and the public sector. As the leader in the
commercial market space, Visa Commercial offers unsurpassed acceptance
in more than 160 countries worldwide. For more information, visit
www.visa.com/visacommercial.