Garland added, “Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa’s unlawful conduct affects not just the price of one thing — but the price of nearly everything.”
Visa and its rival Mastercard have seen significant growth over the past two decades, reaching a combined market cap of around $1tn. They have become integral in processing payments, acting as intermediaries between banks and merchants.
In response to the lawsuit, Visa called the claims ‘meritless.’ Visa general counsel Julie Rottenberg argued, “Anyone who has bought something online, or checked out at a store, knows there is an ever-expanding universe of companies offering new ways to pay for goods and services.”
She continued, “Today’s lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving.”
According to the DOJ complaint, Visa processes over 60 percent of debit transactions in the US, collecting more than $7bn annually in processing fees.