Visa reports FTC looking into its routing policies

On Nov. 16, 2012, Visa Inc. reported in its annual Form 10K filed with the U.S. Securities and Exchange Commission that the Federal Trade Commission's Bureau of Competition requested the card company provide information regarding potential violations of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The potential violations pertain to Visa's transaction routing policies.

"The request focuses on information related to the purposes, implementation and impact of the optional PIN Debit Gateway Service," Visa said in the filing. It also said PIN Debit Gateway Service revenue "is not material to the company's financial statements."

The company said the FTC asked that it voluntarily provide information about possible violations of Section 920(b)(1)(B) of the Dodd-Frank Act – a section that prohibits card networks from inhibiting the ability of anyone accepting debit card payments to route debit transactions over any card network that processes the transaction.

In addition, the FTC is considering whether Visa violated sections of the Durbin Amendment to the Dodd-Frank Act that also prohibit card companies from inhibiting debit card routing. Visa said in its report that it is cooperating with the bureau. The company did not respond to a request for comment by press time.

Form 10K is a company status report annually required by the SEC from companies with more than $10 million in assets and 500 stockholders. Form 10K details items such as company history, organizational structure, executive compensation and audited financial statements, among other things.

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