As per reports, Visa Inc. (V) is under investigation by the U.S Department of Justice to probe the credit card’s giant involvement in anti-competitive practices in the debit-card market. The antitrust division is probing the network’s rules for routing transactions both in stores and online.
Parties have raised complaints about the high cost of network fees, or interchange fees for long which is usually 2% or more of each transaction, and go to the financial institutions behind the transactions.
The MPC has been concerned about these practices to limit debit routing for years and it’s great to see the Department of Justice looking into it,” stated spokesman Craig Shearman. “Routing for online transactions is particularly important at a time when online shopping has accelerated so rapidly during the pandemic.”
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Its mission is to connect the world through the most innovative, reliable, and secure payment network – enabling individuals, businesses, and economies to thrive. Their advanced global processing network, VisaNet, provides secure and reliable payments around the world and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying its brand, products, people, network, and scale to reshape the future of commerce. To learn more about Visa (V) and to track its ongoing progress please visit the Vista Partners Visa (V) Coverage Page.)
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