DOJ Ramps Up Visa Debit Card Antitrust Probe

The U.S. Department of Justice (DOJ) is continuing its antitrust investigation into Visa's debit card practices, seeking additional documents and information related to competition with other payment networks. Visa has been cooperating with the probe, which was initiated in 2021. Meanwhile, the European Commission has also launched an investigation into Visa's incentive agreements with clients. The news follows a recent FTC order requiring Mastercard to share customer account information for processing debit payments with competing networks, a move seen as a victory for consumers and merchants.

Department of Justice Investigation into Visa's Debit Card Practices Intensifies

The United States Department of Justice (DOJ) is expanding its investigation into Visa's debit card practices, as revealed by the company's recent filing with the Securities and Exchange Commission (SEC).

According to the SEC filing, the DOJ is seeking additional documents and information pertaining to Visa's debit card operations in the United States, particularly focusing on its competitive practices with other payment methods and networks.

The investigation stems from allegations that Visa engaged in anticompetitive conduct in the debit card industry, potentially hindering retailers from utilizing lower-cost card networks.

In 2021, the DOJ's antitrust division initiated an investigation into Visa's debit card practices. The probe aimed to determine whether Visa employed tactics to prevent retailers from routing debit card transactions through alternative networks that offered lower fees.

In addition to the DOJ's ongoing investigation, Visa disclosed that the European Commission notified the company last month of an investigation into its incentive agreements with clients.

These developments follow the recent proposed order by the Federal Trade Commission (FTC) against Mastercard. The FTC alleged that Mastercard restricted competition in the debit card market by limiting other networks' access to customer account information necessary for processing debit payments.

The FTC's proposed order requires Mastercard to share the requisite customer information with competing networks. The agency hailed the measure as a victory for consumers and merchants who rely on debit card payments.

The FTC's focus is on tokenized transactions, a process that replaces sensitive data elements with non-sensitive equivalents known as tokens. These tokens act as references that map back to the original data through tokenization systems.

The ongoing investigations into Visa and Mastercard underscore the intensifying scrutiny of payment industry practices by antitrust authorities. These probes aim to ensure fair competition and protect consumers and businesses from potential anticompetitive conduct.