Discover Financial sues Visa over anti-competitive card practices
By Staff Reporter | Nov 26, 2014 05:31 AM EST
Discover, through its Pulse Network LLC unit, alleges that "in order to maintain its monopoly, Visa has undertaken a series of illegal actions that undermine competition - harming rival debit networks, merchants, acquirers, card issuers, and consumers."
Representatives at Visa could not immediately be reached for comment outside regular business hours.
Pulse requires its debit cardholders to authorize transactions with a personal identification number (PIN). Most Visa transactions use customer signature.
The lawsuit alleges that "Visa has a long history of making sure that PIN debit does not predominate, including undertaking illegal behavior to fend off competitive threats to its debit network services monopoly."
In the petition, Discover said that Visa is offering economic incentives to merchants to choose the Visa network for transactions.
Discover is challenging a Visa rule that requires financial issuers of Visa signature debit cards to also include Visa's PIN services instead of allowing other PIN networks like Pulse to compete for that business.
The case is Pulse Network LLC v. Visa Inc in the U.S. District Court of Southern District of Texas, Houston Division. Case: 4:14-cv-03391.
Most Popular
-
1
Southwest Faces Critical Revenue Growth, Slashes 2,000 Jobs, Shuts Down Operations Caused by Boeing Delays -
2
Biden Administration Expanding Pay Rule Change, Makes 4 Million Salaried Employees Eligible for Overtime Pay -
3
10 Power Phrases: How Early Career Professionals Can Stand Out and Excel in The Workplace -
4
Starbucks Gains US Supreme Court Support on Challenging Federal Courts’ Injunction Requests -
5
Nvidia-backed Synthesia Introduces New Sets of AI-Powered Avatars, Conveys Human Emotions Through User Text Inputs -
6
US Chamber of Commerce Sues FTC, Cites Economic Implications on Banning Noncompete Agreements -
7
With The Rise of Remote Work, Is Co-Working Right For Me?