Bullet points of Visa monopoly over debit cards hurts consumers and businesses, feds say
Bullet points of Visa monopoly over debit cards hurts consumers and businesses, feds say
- The US Department of Justice has filed a lawsuit against Visa, accusing the company of using its market dominance to stifle competition in the debit card market and raise costs for consumers and businesses.
- Visa's alleged actions include blocking rivals from introducing lower-priced debit products and pressuring merchants and banks into agreements that penalize businesses that use alternative debit or payment systems.
- The company's market power allows it to extract fees that are far higher than what it could charge in a competitive market, resulting in higher costs for consumers and businesses.
- The Justice Department claims that Visa's conduct affects not just the price of one thing, but the price of nearly everything, as merchants and banks pass along the costs to consumers.
- Visa earns around $7 billion a year in processing fees, and its market dominance allows it to block competitors from bringing alternative debit products to market, resulting in billions of dollars in extra fees for consumers and businesses.
- The Justice Department has previously blocked Visa's proposed acquisition of Plaid, a financial technology provider, on grounds that the deal would hurt competition in the debit payment market.
- The US Department of Justice has filed a lawsuit against Visa, accusing the company of using its market dominance to stifle competition in the debit card market and raise costs for consumers and businesses.
- Visa's alleged actions include blocking rivals from introducing lower-priced debit products and pressuring merchants and banks into agreements that penalize businesses that use alternative debit or payment systems.
- The company's market power allows it to extract fees that are far higher than what it could charge in a competitive market, resulting in higher costs for consumers and businesses.
- The Justice Department claims that Visa's conduct affects not just the price of one thing, but the price of nearly everything, as merchants and banks pass along the costs to consumers.
- Visa earns around $7 billion a year in processing fees, and its market dominance allows it to block competitors from bringing alternative debit products to market, resulting in billions of dollars in extra fees for consumers and businesses.
- The Justice Department has previously blocked Visa's proposed acquisition of Plaid, a financial technology provider, on grounds that the deal would hurt competition in the debit payment market.