CyberSource
| Company type | Subsidiary |
|---|---|
| Industry | Payment processing |
| Founded | 1994 |
| Founder | William S. McKiernan |
| Fate | Acquired by Visa Inc. |
| Headquarters | Foster City, California , United States |
Area served | Worldwide |
| Products | Online payment processing and fraud prevention solutions |
| Parent | Visa Inc. |
Cybersource is a United States-based payment gateway that was established in 1994.
In November 2007, Cybersource expanded its reach by acquiring the U.S. small business payment platform Authorize.net for $565 million.
Visa Inc. purchased Cybersource on April 22, 2010, in a deal valued at $2 billion.
History
Founded in 1994 by William S. McKiernan, CyberSource specialized in delivering online payment processing and fraud prevention solutions tailored for medium to large-scale merchants. The company also introduced software.net, an online marketplace for software, and built the payment system supporting its e-commerce activities.
Amid the dot-com era, CyberSource went public on June 23, 1999, offering 4 million shares at $11 each under the stock symbol CYBS.
The acquisition of Authorize.Net in 2007 allowed CyberSource to broaden its client base from primarily mid-sized and large enterprises to incorporate small business customers.
Visa's acquisition of CyberSource for $2 billion in April 2010 was intended to drive Visa’s expansion in the e-commerce sector. The plan centered on leveraging CyberSource's comprehensive merchant transaction insights alongside Visa's vast network data to improve fraud detection capabilities.
The transaction finalized on July 21, 2010, resulting in CyberSource becoming a fully owned subsidiary of Visa Inc.