USA Today

DOJ's Visa antitrust lawsuit alleges debit card company monopoly

Daily Caller

DOJ Files Suit Against Visa, Alleges Debit Card Market Monopoly

The Daily Money: DOJ sues Visa

The US Department of Justice (DOJ) has filed a lawsuit against Visa, the San Francisco-based payment network, alleging it violated antitrust law by illegally stifling competition in the debit card market.

Breitbart

The New York Times

The lawsuit, filed in federal court in New York on Tuesday, claims Visa abused its dominant position to penalize merchants for using alternative payment networks and prevent potential rivals from entering the market.

As Visa earns an incremental fee from transactions routed over its network, the DOJ alleges that its anticompetitive and monopolistic behavior cost billions of dollars to consumers and businesses, including merchants and banks.

BBC News

In the fiscal third quarter, the credit card and payments giant processed $3.3T in transactions and reported a profit of $4.87B, while its US payments grew by 5.1% — faster than the country’s economic growth.

According to the DOJ, Visa processes more than 60% of debit transactions in the US, generating over $7B in debit card fees per year. Prosecutors allege that the firm imposes exclusivity agreements with card issuers and merchants to keep its hold over the market.

Forbes

Reuters

Though Visa — valued at over $500B on the stock market — said it will defend itself in court, its shares fell by 5.5% to close at $272.94 on Tuesday. The company has reportedly set aside around $1.6B for potential settlements over its processing fees, also known as swipe fees or interchange fees.

DOJ Sues Visa Over Alleged Monopoly on Debit Card Swipes

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DOJ Sues Visa Over Alleged Monopoly on Debit Card Swipes

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