Visa Says Justice Department Weighing Antitrust Suit

[Joanne98]

Source: Bloomberg

July 29 (Bloomberg) -- Visa Inc., the world’s biggest payments network, fell as much as 5 percent after saying the U.S. Department of Justice may sue the company over a policy that bars merchants from charging extra to customers who pay with credit cards.

“The department has indicated that it is considering filing a civil lawsuit,” Chief Executive Officer Joseph W. Saunders said yesterday in a conference call with analysts after San Francisco-based Visa reported fiscal third-quarter results. “We are currently engaged in constructive negotiations with the department to resolve its concerns as it relates to Visa without litigation or payment of monetary damages.”

Visa, American Express Co. and Purchase, New York-based MasterCard Inc. disclosed in 2008 that the Justice Department was investigating the companies over so-called anti-surcharging policies and rules prohibiting merchants from “steering” customers to other forms of payment.

The Justice Department’s antitrust division is “investigating whether certain credit-card network rules regarding merchants’ treatment of various payment forms, including credit cards, are anticompetitive,” spokeswoman Gina Talamona said in an e-mail. She declined to discuss specific companies.


Read more: http://noir.bloomberg.com/apps/news?pid=20601109&sid=aZ31byjeyl54&pos=10

[damntexdem]

1. The no-surcharge rule should be a public law, not a company policy.

[Downwinder]

2. Ask about discounts for cash.

[Po_d Mainiac]

3. About time

The card companies have been pilfering from retailers for way too long. It's the cash customers that end up taking on the chin under the current system.

People need to realize there are no free rewards