Visa and CyberSource currently collaborate on risk models built into CyberSource’s automated fraud management solutions. Together, they will help merchants increase revenue through global growth while minimizing monetary loss from fraud and provide connectivity to multiple payment networks, including Visa. For financial institutions acquirers, Visa will deliver added value by providing new business referrals from eCommerce merchants.

Michael Walsh, president and CEO of CyberSource, will continue to oversee CyberSource’s operations. William McKiernan, executive chairman and founder, will join Visa as an executive advisor to assist in the integration of the two businesses.

Joseph Saunders, chairman and CEO of Visa, said: “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.

“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 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.”

Mr Walsh said: “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.”

Mr McKiernan said: “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.”

The transaction is subject to customary closing conditions, including approval by the stockholders of CyberSource and required regulatory approvals and is expected to close in Visa’s fourth fiscal quarter of 2010.