FTC Probed Visa and Mastercard For Anticompetitive Practices Involving Online Debit-Card Routing

The Federal Trade Commission investigated if Visa Inc V and Mastercard Inc MA security tokens restrict debit-card routing competition on online payments.
For the past few years, the FTC probed whether Visa and Mastercard block merchants from routing payments over other debit-card networks, the Wall Street Journal reported.
The FTC expanded its focus to routing challenges that stem from the networks' security tokens.
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Visa and Mastercard's lion's share of the card networking market drew increasing scrutiny from regulators. It fueled tension with merchants, which pay fees set by the networks when customers pay via card.
A Justice Department investigation of Visa's possible unlawful dominance in debit cards is ongoing.
The FTC probed whether Visa and Mastercard restricted the information they sent when they enabled an online payment to go over a different network.
The restriction increased the chances of rejection by the card's issuing bank when handled by another network, merchants alleged.
The FTC also scrutinized whether Visa and Mastercard restricted routing choices after shoppers store their debit-card information on merchants' websites or apps or pay tab buttons.
The Federal Reserve urged banks to enable at least two networks on all debit-card transactions, including online payments.
Price Action: V shares closed at $185.35 on Monday.

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