VOA新闻杂志2024--US Accuses Visa of Illegally Blocking Competition

The U.S. Department of Justice (DOJ) has brought a lawsuit¹ against Visa. It is accusing the financial services company of using illegal methods to block competition in the debit² card market.

The lawsuit states the San Francisco-based company penalizes⁴ businesses and banks that do not use Visa's own payment processing technology.

The DOJ argues that Visa's anti-competition methods cost individuals and businesses billions of dollars every year. Visa earns money for each purchase, or transaction, processed on its own network.

The DOJ estimates about 60 percent of debit transactions in the U.S. take place on Visa's debit network. This adds up to more than $7 billion each year.

In a statement, Attorney General Merrick Garland said the DOJ found that Visa had unlawfully gained enough power to charge money, or fees, "that far exceed what it could charge in a competitive market."

Garland added that businesses and banks then pass those costs on to consumers. They either raise prices or reduce quality or service. As a result, Visa's business methods affect "not just the price of one thing - but the price of nearly everything."

Julie Rottenberg is Visa's chief legal counsel. She said in a statement that the lawsuit does not consider the "ever expanding universe of companies offering new ways to pay for goods and services."

"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," Rottenberg said. She added that the company would strongly defend itself against the "meritless" lawsuit.

The lawsuit was brought in the U.S. District Court for the Southern District of New York. The DOJ argues that the huge number of transactions completed on Visa's network makes it difficult for businesses to use alternative companies.

The DOJ also accuses Visa of blocking competition by paying to enter into partnership⁵ agreements with possible competitors.

In 2020, the DOJ brought legal action to block the company's $5.3 billion purchase of financial technology startup Plaid. It argued the takeover was an attempt to gain control of a possible competitor to Visa. The purchase deal was later cancelled.

Since the pandemic, more people worldwide have been shopping online for goods and services. This has led to higher earnings⁶ for Visa because of its fee structure for transactions. In addition, more businesses - including ones like bars, haircutters and coffee shops that mostly use cash - have started accepting credit or debit cards as a form of payment.

Sanjay Sahrani is a financial advisor⁷ with investment company KBW based in New York City. He recently told investors⁸ in a note that he estimates U.S. debit revenue is at most about 10 percent of Visa's revenue. Sahrani said this means the lawsuit is likely to have only a limited effect on Visa's revenue as a whole. He also noted⁹ the lawsuit could last for years if it is not settled and goes to trial.

Financial records show Visa processed $3.3 trillion in transactions on its network during the three months ending on June 30. This was an increase of 7.4 percent from a year earlier. U.S. payments grew by 5.1 percent, which is a lot faster than U.S. economic growth.

Words in This Story

debit - n. money taken out of a bank account with a card

penalize³ - v. to punish a person or business for breaking a law or rule

charge -v. to create a debt in an account or to ask a price or fee

exceed - v. to be more than a particular number or amount

thrive - v. to grow very well, or to become very healthy or successful

meritless - adj. without merit: good qualities that deserve praise

alternative - n. one or two or more things you can choose between

cash -n. physical money known as legal tender

revenue -n. money that is paid to a business or organization

1 lawsuit   

n.诉讼，控诉

参考例句：

• They threatened him with a lawsuit.他们以诉讼威逼他。
• He was perpetually involving himself in this long lawsuit.他使自己无休止地卷入这场长时间的诉讼。

2 debit   

n.借方，借项，记人借方的款项

参考例句：

• To whom shall I debit this sum?此款应记入谁的账户的借方？
• We undercharge Mr.Smith and have to send him a debit note for the extra amount.我们少收了史密斯先生的钱，只得给他寄去一张借条所要欠款。

3 penalize   

vt.对…处以刑罚，宣告…有罪；处罚

参考例句：

• It would be unfair to penalize those without a job.失业人员待遇低下是不公平的。
• The association decided not to penalize you for the race.赛马协会决定对你不予处罚。

4 penalizes   

对…予以惩罚( penalize的第三人称单数 )； 使处于不利地位

参考例句：

• The new law penalizes the poorest members of society. 新法规对社会中最贫困者不利。

5 partnership   

n.合作关系，伙伴关系

参考例句：

• The company has gone into partnership with Swiss Bank Corporation.这家公司已经和瑞士银行公司建立合作关系。
• Martin has taken him into general partnership in his company.马丁已让他成为公司的普通合伙人。

6 earnings   

n.工资收人；利润，利益，所得

参考例句：

• That old man lives on the earnings of his daughter.那个老人靠他女儿的收入维持生活。
• Last year there was a 20% decrease in his earnings.去年他的收入减少了20%。

7 advisor   

n.顾问，指导老师，劝告者

参考例句：

• They employed me as an advisor.他们聘请我当顾问。
• The professor is engaged as a technical advisor.这位教授被聘请为技术顾问。

8 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

9 noted   

adj.著名的，知名的

参考例句：

• The local hotel is noted for its good table.当地的那家酒店以餐食精美而著称。
• Jim is noted for arriving late for work.吉姆上班迟到出了名。