The Department of Justice (DOJ) is examining if Visa gave Stripe, Square, and PayPal financial incentives that prohibited them from working with its rivals, according to the WSJ. Fintech firms pay Visa a fee to facilitate transactions across its network, and the credit card company has offered lower fees as an incentive.
- The DOJ is investigating if Visa offered PayPal incentives that led the latter to try to persuade users to make payments with Visa-branded cards.
- Visa reportedly offered to reduce fees for Square and give it performance payments, which increased as more transactions occurred on its network.
- The DOJ will probe if Visa blocked debit-card transactions from occurring on other networks.
- The probe is part of a larger antitrust investigation into Visa's business practices that was first reported in March.
- In January, Visa called off its $5.3B acquisition of fintech firm Plaid after the DOJ filed an antitrust lawsuit arguing the deal would reduce competition.