Judge Rejects Visa's Bid to Dismiss Debit Card Antitrust Lawsuit

Core Viewpoint - A federal judge has allowed the Justice Department's antitrust lawsuit against Visa to proceed, rejecting Visa's attempt to dismiss the case, which alleges that Visa stifles competition in the debit card market [1][2]. Group 1: Lawsuit Details - The Justice Department filed the antitrust lawsuit against Visa in September, claiming that Visa uses exclusionary contracts and anticompetitive practices to maintain its dominance in the debit card market, leading to higher fees for merchants and consumers [3]. - The lawsuit accuses Visa of entering contracts with merchants that require them to route nearly all debit transactions through its network, employing "cliff pricing" structures that penalize merchants for not meeting volume commitments, discouraging issuers from enabling competing networks, and paying potential competitors not to develop alternative debit products [4]. Group 2: Visa's Response - Visa's General Counsel, Julie Rottenberg, described the lawsuit as "meritless," arguing that the debit space is competitive with many companies offering various payment methods, and that Visa's network is chosen for its security, reliability, and fraud protection [5]. - PYMNTS CEO Karen Webster noted that the effectiveness of payment systems for consumers poses a challenge for Visa's competitors, emphasizing that innovation and consumer choice will ultimately determine payment methods [6].