DOJ Sues Visa Over Alleged Antitrust Violations in Debit Card Market

The US Justice Department has filed an antitrust lawsuit against Visa, accusing the company of stifling competition in the debit card market. The DOJ alleges Visa penalizes merchants and banks who do not use its payment processing technology. Visa has denied the accusations, calling the lawsuit 'meritless.'

The US Justice Department has formally filed an antitrust lawsuit against Visa, alleging the financial giant uses its market dominance to stifle competition in the debit card sector, costing consumers and businesses billions.

According to the complaint lodged on Tuesday, Visa penalizes merchants and banks that opt against using its payment processing technology for debit transactions, despite the existence of alternatives. This arrangement allows Visa to earn incremental fees from each transaction on its network.

Attorney General Merrick B. Garland stated, 'We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market,' adding that these costs are passed on to consumers.