DOJ probing Visa on US debit card practices, competition

Published Sat, Jan 28, 2023 · 07:34 AM

VISA said on Friday (Jan 27) the antitrust division of the US Department of Justice (DOJ) had issued investigative demand earlier this month seeking documents and information about US debit card practices and competition with other payment networks.

The probe, which began in early 2021, followed reports the US was investigating whether the credit card company uses anticompetitive practices in the debit card market.

The Justice Department has previously investigated the credit card payments industry but settled with Visa and Mastercard in 2010 when they agreed to allow merchants to offer consumers incentives to use a low-cost credit card.

Visa’s regulatory filing late on Friday also said the European Commission had informed the company in December that it had opened a preliminary investigation into its incentive agreements with clients.

Both Visa and Mastercard have faced increasing scrutiny for their dominance in the credit card market. Visa, in 2019, had to settle a European Union antitrust probe over card fees. REUTERS