MasterCard Wins Injunction Against Visa Fees
The fee in question was levied by Visa against debit card issuers whose debit volume was reduced by more than 10 percent. MasterCard argued, and the judge agreed, that this tactic virtually guaranteed that Visa customers could not switch business to MasterCard.
MasterCard has won an injunction against Visa for unlawful fees. A judge ruled on Thursday of last week that the fees, that essentially deterred issuers from moving their business to a competitor, must be repealed.
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The fee in question was levied by Visa against debit card issuers whose debit volume was reduced by more than 10 percent. MasterCard argued, and the judge agreed, that this tactic virtually guaranteed that Visa customers could not switch business to MasterCard.
MasterCard’s Noah Hanft, speaking out against injustice, had this to say: "This is a significant win for MasterCard and its customers. With this roadblock out of the way, financial institutions will not be deterred by this coercive fee and can make decisions based on their best judgment about quality of service, strength of brand and other competitive factors that benefit their cardholders."
Though releasing no comment yet, Visa is likely to appeal the ruling.
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