(Amounts in thousands of Brazilian reais – R$, unless otherwise stated)

The amounts due by credit cardholders through the card-issuing banks and the amounts to be transferred to merchants are recorded in memorandum accounts. As of December 31, 2009, the balances are R$25,963,741 (R$20,767,459 as of December 31, 2008) and R$26,631,263 (R$21,255,087 as of December 31, 2008), respectively.

In addition to the provision of services consisting of the transfer of credit card transaction amounts between the card-issuing banks and the merchants, the Company also guarantees accredited merchants that they will receive the amounts paid with credit cards.

The Company has an instrument to mitigate the credit risk of banks that issue VISA cards, used as a hedge against the risk of default by such banks and that requires the provision of guarantees (collaterals or bank guarantees) considering the credit risk of the card-issuing bank, sales volume with VISA cards, and residual risk of default by cardholders. The provision of guarantees is mandatory for all card-issuing banks with credit risk and amounts are reviewed periodically by the VISA logo and the Company. If the card-issuing bank does not provide the requested guarantees, it is not accepted as a system member or is disqualified as such. The objective of the business guarantee system is to ensure merchants that they will receive the amounts of the transactions carried out with VISA cards. The card-issuing banks provide the Company with guarantees against possible default by cardholders and the Company provides guarantees to merchants against possible default by the card-issuing banks in the event of an intervention by the Central Bank of Brazil (BACEN). Visa International manages the system of guarantees required from card-issuing banks and is the final guarantor of the system, including of the Company.

Based on the immaterial historical amount of Company losses due to default from card-issuing banks and the current credit risks of these financial institutions, the Company estimates that the fair value of the guarantees provided to merchants is immaterial and, therefore, is not recognized as a liability.