DOJ Prepares to Sue Visa Over Alleged Debit Card Monopoly

DOJ Prepares to Sue Visa Over Alleged Debit Card Monopoly

The U.S. Department of Justice (DOJ) is reportedly preparing to file a lawsuit against Visa, accusing the payments giant of monopolizing the debit card market. According to sources cited by Bloomberg News, the DOJ's antitrust division plans to take legal action as soon as Tuesday, claiming Visa engaged in anticompetitive practices to maintain its dominance.

The lawsuit stems from a probe initiated in 2021, during which the DOJ sought documents and information on Visa’s debit card operations. The investigation focused on whether Visa had been using its market power to limit competition from other payment networks. Visa has previously denied wrongdoing, asserting that its debit practices comply with U.S. laws.

The legal action follows a broader regulatory crackdown on payment networks. Earlier this year, Discover Financial’s Pulse Network settled a lawsuit accusing Visa of obstructing competition in the multibillion-dollar debit card services market. Mastercard, Visa’s main competitor, has also faced similar investigations in the past regarding its debit card program.

As of now, both Visa and the DOJ have declined to comment on the pending lawsuit.