Visa says the DOJ plans to probe its debit card business, shares fall 6%

Visa shares dropped sharply Friday after a report mentioned the Justice Department has opened an investigation into its debit card enterprise and doable anticompetitive practices.

The firm mentioned Friday afternoon that investigators have began to gather data on Visa debit practices.

The Wall Street Journal, which first reported the probe, mentioned the DOJ is looking for to decide whether or not the largest card community in the United States has curbed retailers’ capability to route debit-card transactions over less-expensive networks.

Sources informed the Journal that investigators’ questions are centered on on-line debit-card transactions however have additionally included inquiries about in-store points. The Justice Department declined to remark.

Visa, which had seen its shares below strain earlier on Friday, abruptly fell from round $218.50 per share to below $207 by Friday’s shut. The losses put the inventory down greater than 6% on the session.

The probe focuses on the function of community charges, expenses that funds processors invoice to retailers in change for entry to the processor’s huge community, in accordance to the Journal’s report. Investigators will reportedly search to decide if Visa’s price insurance policies unlawfully give it unfair market dominance.

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