Visa, Mastercard draw FTC probe over debit card transactions

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Visa, Mastercard draw FTC probe over debit card transactions

US FTC (Federal Trade Commission), had set out an initial investigation on credit card issuing Mammoths such as Visa Inc. alongside Mastercard Inc. on possible suspension of merchant transactions using other debit card networks, a Bloomberg Law report revealed on Wednesday, the 13th of November 2019, had revealed citing sources familiar with the subject-matter.

On top of that, according to Wednesday’s (November 13th) Bloomberg Law report, the regulators were seeking for potential evidences on whether US-based multinational big-league credit card issuers such as Visa Inc., Master Card alongside other larger debit card issuers had been cancelling any kind of routing of transaction on alternative debit card networks likes of Pulse, Star and NYCE.

Aside from that, the Bloomberg Law report that published on Wednesday (November 13th) had also added that the Federal Trade Commission had been reaching out to merchants alongside merchants’ trade groups in a bid to find out the ins-and-outs of the issue which had every possibility to raise potential anti-trust concerns.

Nonetheless, had the debit card issuers likes of Visa and Master Card been cancelling or blocking any kind of routing of transactions to their smaller rival debit card issuers, eventually it would spell a fresh blow to two of the world’s largest payment processors, both of which had settled a costlier and protracted EU antitrust probe earlier this year over critical mismanagement on card fees.