CyberSource

Cybersource
Company typePayment Gateway
IndustryTechnology
Founded1994 (1994)
Headquarters
Foster City, California
,
United States
ParentVisa Inc.

Cybersource is an American payment gateway founded in 1994. Headquartered in Foster City, California, the company offers a suite of services for online payment processing, e-commerce payment processing, fraud management, and payment security services for merchants and financial institutions. In November 2007, Cybersource acquired the U.S. small business payment services provider Authorize.net for $565 million.[1] In July 2010, it was acquired by Visa Inc. for approximately US$2 billion, becoming a wholly owned subsidiary.[2][3]

History

CyberSource was founded in 1994 by William S. McKiernan.[4] The company was created to provide online payment and fraud management services for medium and large-sized merchants. It initially launched software.net, an online software store, and built the payment infrastructure for its own e-commerce operations.[4]

During the dot-com boom, CyberSource went public. The company commenced its initial public offering (IPO) on June 23, 1999, issuing 4 million shares of common stock at an offering price of $11 per share. The company was listed under the stock ticker CYBS.[5]

In 2007, CyberSource announced its acquisition of Authorize.Net, a provider of payment solutions for small businesses, for $565 million.[1][6] This move expanded CyberSource's market reach from its traditional base of mid-sized and enterprise customers to include small businesses.[6]

In April 2010, Visa announced it would acquire Cybersource in a deal valued at about $2.0 billion ($26 per share).[2][7] The acquisition was completed on July 21, 2010. According to the deal disclosures, at the time Cybersource processed approximately 25% of all U.S. eCommerce dollars.[8][9]

Following the acquisition, Cybersource continued to operate under its brand as part of Visa's merchant services strategy. Cybersource's founder, William S. McKiernan, joined Visa as an Executive Advisor to help with the integration of the two companies, while Michael Walsh continued to lead Cybersource as its president and CEO.[10][11]

Services and products

Cybersource provides a comprehensive portfolio of solutions designed to simplify and automate payment operations. These services are delivered through a modular platform that allows businesses to customize their payment solutions. Its services include processing of card-not-present (CNP) transactions, tokenization, subscription and recurring billing, digital wallet integrations, multi-rail payment support and fraud analytics.[12]

  • Payment acceptance: Cybersource's global payment gateway enables merchants to accept a wide variety of payment methods, including credit and debit cards, digital wallets, and other regional payment types, across more than 190 countries and territories.[13]
  • Fraud and risk management: It's flagship solution “Decision Manager” utilizes insights from the vast number of transactions processed annually by Visa and Cybersource to help merchants identify and prevent fraudulent transactions.[13][14][15][16]
  • Payment security: Cybersource provides solutions to reduce the risks associated with the handling of sensitive payment data (such as tokenization) that also help merchants simplify their PCI DSS Compliance.[15]
  • Unified Commerce: This solution helps merchants support omnichannel retail, integrating online and in-person payment solutions. This includes solutions for mobile and point-of-sale (POS) transactions.

See also

References

  1. ^ a b "Cybersource to Buy Authorize.Net in $565M Deal". eWeek. 2007-06-19. Retrieved 2007-06-19.{{cite news}}: CS1 maint: deprecated archival service (link)
  2. ^ a b "Visa seeks online growth with Cybersource". Reuters. 2010-04-21.
  3. ^ Martin, Andrew (2010-04-21). "Visa Buys Cybersource for $2 Billion". The New York Times. ISSN 0362-4331. Retrieved 2020-04-17.
  4. ^ a b "DEFINITIVE PROXY STATEMENT". www.sec.gov. 2008-04-10. Retrieved 2025-11-17.
  5. ^ Marcial, Gene (1999-07-26). "Cybersource Looks After E Business - Bloomberg".
  6. ^ a b "CyberSource buys Authorize.Net for $565m". Finextra Research. 2007-06-18. Retrieved 2025-11-17.
  7. ^ "Visa Buys CyberSource for $2 Billion (Published 2010)". 2010-04-22. Retrieved 2025-11-17.
  8. ^ "Visa Inc. Completes Acquisition of CyberSource". investor.visa.com. Retrieved 2025-11-17.
  9. ^ "Some frequently asked questions about the transaction, dated April 21, 2010". www.sec.gov. Retrieved 2026-03-08.
  10. ^ News, SecurityWeek (2010-04-21). "Visa Inc. to Acquire CyberSource Corporation for $2 Billion". SecurityWeek. Retrieved 2026-03-08. {{cite web}}: |last= has generic name (help)
  11. ^ Live, Mobile World (2010-04-22). "Visa Inc. to Acquire CyberSource for 2B to Accelerate Growth in Mobile Payments and eCommerce". Mobile World Live. Retrieved 2026-03-08.
  12. ^ "1LINK Collaborates With Visa For Improved Home Remittances". The Friday Times. 2024-09-14. Retrieved 2026-03-18.
  13. ^ a b PYMNTS (2025-03-29). "QorPay Integrates Visa Platform Connect and Other Services". PYMNTS.com. Retrieved 2026-03-18.
  14. ^ Stewart, John. "How an Ingenico Integration With Cybersource Promises a Global Point of Sale". Digital Transactions. Retrieved 2026-03-18.
  15. ^ a b APSM_admin (2015-08-05). "AirPay Enables Secure and Frictionless Mobile Experience for Garena Using CyberSource Solutions". Asia Pacific Security Magazine. Retrieved 2026-03-18.
  16. ^ "Sampath Bank partners Cybersource from Visa to enhance digital payment solutions for businesses | Daily FT". www.ft.lk. Retrieved 2026-03-18.
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