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

The estimated fair values of financial instruments have been determined using available market information and appropriate valuation methodologies. However, considerable judgment was required to interpret market data and then develop the most appropriate fair value estimates. Accordingly, estimates presented herein are not necessarily indicative of the amounts that could be realized in the market. The use of different market methodologies may have a material effect on the estimated fair values.

These instruments are managed through operating strategies, aimed at liquidity, profitability and security. The control policy consists of permanent monitoring of contracted rates compared to market rates. The Company does not have transactions for speculative purposes, derivatives or any other risk assets.

(a) Financial assets and financial liabilities

The Company's financial assets and financial liabilities refer to cash and cash equivalents, trade accounts receivable, receivables and payables from securitization abroad, payables to merchants and trade accounts payable. The estimated fair values of financial instruments as of December 31, 2009, are as follows

	2009
	Carrying Amount	Fair value
Cash and cash equivalents	514,280	514,280
Trade accounts receivable	1,178,784	1,178,784
Receivables – securitization abroad	209,209	215,110
Payables – securitization abroad	209,270	215,110
Trade accounts payable	116,443	116,443
Payables to merchants	667,522	667,522

The fair value of financial assets and short- and long-term financing was determined, when applicable, by using current interest rates available for transactions conducted under similar conditions and with similar maturity dates.

b) Credit risk

The Company has a tool to mitigate the credit risk of VISA card-issuing banks, in order to hedge against the risk of default by such banks.

This hedging tool consists in the commitment assumed by the VISA logo, pursuant to the international regulation, to guarantee the transfer to the Company's merchants of all sales made with VISA cards on the respective due dates in the event of default by an issuer.

The guarantee model implemented by the VISA logo, jointly with the Company, contemplates the provision of guarantees (collateral or bank guarantees) considering the credit risk of the issuer, sales volume with VISA cards and residual risk of default by cardholders. The provision of guarantees is mandatory for all issuers with credit risk and amounts are reviewed periodically by the VISA logo and the Company. If the issuer does not provide the requested guarantees, it is not accepted as a system member or is disqualified as such.

The Company leases POS equipment to all affiliated merchants that do not have their own systems to capture transactions. The rent is deducted, on the due date, from the amount of transactions paid to merchants. However, the rent may not be received on the due date whenever there are no amounts payable to merchants. In these cases, the Company collects the rent through debit to future sales, bank account or outside collection agencies, and material losses on rent may be incurred.

Also, VISA cardholders can contest transactions made with credit cards within certain timeframes from the date of the transaction. For this purpose, the Company enters into an affiliate agreement with authorized merchants establishing all rules for acceptance of VISA cards at the point of sale. If transactions are contested by cardholders and the business establishment is no longer a VISA-affiliated merchant at the date of the contestation or has no amounts receivable from the Company, then collection will be made through debit to bank account or outside collection agencies and there may be losses to the Company.

c) Risk of fraud

The Company uses a sophisticated antifraud system to monitor transactions with credit and debit cards, which detects and identifies suspected fraud at the time of the authorization and sends an alert message to the card-issuing bank for it to contact the cardholder.

d) Foreign exchange rate risk

Expenses incurred by foreigners in Brazil with VISA card are credited by Visa International Service Association to the Company on the next day, converted into U.S. dollars at the "buy PTAX" (average exchange rate for the U.S. dollar calculated at the end of each day) established by the Central Bank of Brazil (BACEN) on the date expenses were incurred.

The Company enters into forward exchange transactions for U.S. dollars to hedge against fluctuations in exchange rates, which reduce significantly eventual risks of exposure to fluctuation in exchange rates.

There are no other material transactions in foreign currency that might cause a significant impact on the income or loss of the Company because of the effects of the volatility of the exchange rate on other assets and liabilities denominated in foreign currencies, principally the U.S. dollar.

As of December 31, 2009, the net exposure to foreign exchange rate risk, in thousands of U.S. dollars, is as follows:

Assets:
Cash and banks	7,148
Short-term investments	1,330
Receivables – securitization abroad	118,568
	127,046
Liabilities:
Payables to merchants	(4,470)
Payables – securitization abroad	(118,568)
	(123,038)
Long position in U.S. dollars	4,008

e) Interest rate risk

The Company's results of operations are subject to significant fluctuations resulting from short-term investments with floating interest rates.

Pursuant to its financial policies, the Company has maintained its short-term investments at prime banks and has not entered into transactions with financial instruments for speculative purposes.

f) Interest rate sensitivity analysis – short-term investments

The funds from the Company's short-term investments are impacted by changes in interest rates, such as the interbank deposit rate (CDI). As of December 31, 2009, assuming an increase or reduction of 25% and 50% in the interest rates, there would be an increase or decrease of approximately R$12,245 and R$24,490 in financial income, respectively. This amount was calculated considering the impact of hypothetical increases or decreases in interest rates on the average balance of short-term investments in 2009.

g) Derivatives

As of December 31, 2009, the Company had no derivative transactions.

h) Financial instruments per category

December 31, 2009

Assets:	Loans and receivables
Cash and cash equivalents	514,280
Trade accounts receivable	1,178,784
Receivables – securitization abroad	209,209
Total	1,902,273
Liabilities:	Other financial liabilities
Payables to merchants	667,522
Trade accounts payable	116,443
Payables – securitization abroad	209,270
Total	993,235

December 31, 2008

Assets:	Loans and receivables
Cash and cash equivalents	1,072,157
Trade accounts receivable	162,943
Receivables – securitization abroad	491,320
Total	1,726,420
Liabilities:	Other financial liabilities
Payables to merchants	487,628
Trade accounts payable	96,604
Payables – securitization abroad	491,284
Total	1,075,516