US accuses Visa of debit card monopoly

The US has filed a lawsuit against Visa, accusing the financial giant of illegally stifling competition to maintain a monopoly over the debit card market.

It said Visa had punished companies that wanted to use alternative payment networks and paid off potential competitors to keep its hold over the market.

The Department of Justice said the moves had slowed innovation and led to significant additional fees for American consumers and businesses.

Visa did not immediately comment.

The lawsuit is the latest competition lawsuit, known as antitrust in the US, from the Biden administration, which has taken a more aggressive approach to monopoly concerns than previous administrations.

The Department of Justice started investigating Visa in 2021.

The company processes more than 60% of debit transactions in the US, according to the complaint, bringing in $7bn in fees annually. As of 2022, its debit card business was bigger by revenue than its credit card unit, and highly profitable.