By paying potential disruptors not to compete, the DOJ claims Visa has slowed down the development of cheaper, more efficient payment alternatives.
The DOJ argues these deals were designed to keep fintech firms from building their own payment rails. Internal documents cited in the case allegedly show Visa referred to services like as "existential threats" before eventually striking deals to keep them tied to the Visa network. Key Allegations and Their Impact Justice Department probes Visa’s relationships ...
Increased competition among networks might drive down the costs merchants pay, which could lower retail prices. By paying potential disruptors not to compete, the
Visa reportedly penalizes merchants and banks that route transactions through rival networks with higher fees. Key Allegations and Their Impact Increased competition among
If the DOJ succeeds, the court could ban specific contracting practices, potentially opening the door for new players like (which Visa tried to acquire in 2020 before being blocked) to offer direct bank-to-bank payment options. This could lead to: