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Visa’s shares fell sharply on Friday’s midday trading session after a report said the Justice Department opened an investigation into its debit card business and possible anti-competitive practices.
The department’s antitrust division has begun collecting information on whether Visa, the largest card chain in the United States, has restricted merchants’ ability to route debit card transactions over cheaper networks, according to unidentified sources who spoke to The Wall Street Journal.
These sources added that DOJ investigators’ questions are centered on online debit card transactions, but also included inquiries about in-store issues.
Visa, which saw its stocks under pressure on Friday, dropped sharply from about $ 218.50 to about $ 209 per share around 11:30 am in New York, after the Journal report. His losses brought the stock down about 5% in the session.
The Justice Department did not immediately respond to CNBC’s request for comment. Visa declined to comment.
The investigation focuses on the role of network fees, charges that payment processors charge merchants in exchange for access to the processor’s vast network, according to the report.
Investigators will seek to determine whether Visa’s fee policies illegally confer unfair market dominance, the newspaper concluded.