Statement: DOJ sues Visa for alleged ‘anticompetitive’ debit network practices

Largest debit payment processor accused of undermining choice, imposing ‘enormous costs’ 

WASHINGTON — The U.S. Department of Justice (DOJ) filed a lawsuit Tuesday against Visa for allegedly violating antitrust laws by penalizing merchants who route debit transactions to other payment networks and paying potential competitors to partner instead of competing with them. The DOJ says Visa processes more than 60% of debit transactions in the United States. 

U.S. PIRG has long supported policies to make the payment network marketplace more competitive. Some of those measures include the “Durbin Amendment” in the 2010 Dodd-Frank Act, which requires network routing choices for debit transactions; a 2021 Federal Reserve rule to clarify the Durbin Amendment; and introduction of the bipartisan Credit Card Competition Act to also require routing choices for credit card transactions.

In response to the lawsuit, U.S. PIRG’s Consumer Campaign Director Mike Litt released the following statement:

“We’ve seen that when there’s a lack of competition on payment networks, merchants and consumers lose in the end. Retail businesses get stuck paying higher transaction fees, which get passed down to their customers. Merchants need a real choice over which payment networks they use — anticompetitive practices shouldn’t force them into only one choice. Hopefully, the DOJ’s action will ensure a freer, more transparent era for American consumers and businesses.”