23 January 2018
visit www.ebaday.com

First Data sues Visa; alleges anti-competitive practices

06 November 2002  |  4277 views  |  0 Visa

First Data Corp has filed a counter suit against Visa alleging "anti-competitive and monopolistic practices that limit competition, innovation and choice in the payments industry".

Visa filed suit against First Data in April, attempting to block the expansion of processing credit card transactions through First Data Net, and in August added a ban on all private arrangements to authorise or to clear and settle transactions outside of VisaNet.

"For many years, Visa's rules allowed for private arrangements. But, when First Data began testing the first such meaningful arrangement, Visa abruptly changed the rule to prohibit all such innovations," says Eula Adams, senior executive vice president of First Data. "Visa has a track record of changing the rules when a rule no longer is in their best interest. In fact, Visa's chairman, Carl Pascarella, has publicly stated his view: if a rule is hurting us, change the rule."

First Data Net enables direct connections between merchant acquirers and card issuing banks, eliminating the need for transactions to pass through Visa. The card scheme insists that the rule changes are designed to protect banking member investments in the payments system

Adams dismisses the claims. "The suit that Visa filed against First Data in April 2002, and Visa's subsequent decision to completely ban all private arrangements, are efforts to stifle a competitive challenge - not to protect the payment system as Visa alleges," she says. "We feel strongly that in order to challenge the status quo and move the industry forward, we cannot accept Visa's anti-competitive and monopolistic actions."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

First Data launches card fraud detection system

First Data launches card fraud detection system

04 November 2002  |  6629 views  |  0 comments
First Data establishes Chinese payment processing operation

First Data establishes Chinese payment processing operation

17 October 2002  |  2943 views  |  0 comments
First Data wins $100m Westpac card processing contract

First Data wins $100m Westpac card processing contract

01 October 2002  |  4706 views  |  0 comments
JPMorgan Chase extends First Data debit card contract

JPMorgan Chase extends First Data debit card contract

25 September 2002  |  3627 views  |  0 comments
Visa challenges RBA credit card reforms

Visa challenges RBA credit card reforms

23 September 2002  |  3834 views  |  0 comments
Retailers pile pressure on Visa/MasterCard in class action debit case

Retailers pile pressure on Visa/MasterCard in class action debit case

12 September 2002  |  4770 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.capgemini.comvisit www.vasco.com

Top topics

Most viewed Most shared
Banks shift priorities toward growth, digitisation and innovation - surveyBanks shift priorities toward growth, digi...
9386 views comments | 37 tweets | 48 linkedin
Standard Chartered establishes fintech innovation and investment unitStandard Chartered establishes fintech inn...
9209 views comments | 14 tweets | 14 linkedin
BofA leads on blockchain patentsBofA leads on blockchain patents
8979 views comments | 12 tweets | 12 linkedin
Sbanken opens developer portal and invites customers to build their own digital bankSbanken opens developer portal and invites...
8325 views comments | 17 tweets | 11 linkedin
Metro Bank joins digital revolution with instant online account openingMetro Bank joins digital revolution with i...
6931 views comments | 13 tweets | 25 linkedin

Featured job

Competitive base + commission
London, UK

Find your next job