Visa settles antitrust lawsuit by Discover unit over debit card network

Author: Mike Scarcella

June 14 (Reuters) –Discover financial services DFS.N Pulse Network unit has agreed to settle a Texas lawsuit alleging Visa hinders competition in the multibillion-dollar market for networked debit card services by causing merchants to pay higher fees.

Pulse and Visa disclosed the settlement in a lawsuit filed Friday in federal court in Houston, where Pulse sued the payment card giant in 2014. Pulse said it was dismissing the lawsuit on the grounds of “bias,” meaning it cannot be dismissed. reassemble.

The court filing, signed by both parties, did not disclose the terms of the settlement. The companies did not respond to requests for comment or additional information.

Pulse’s lawsuit alleged that Visa established a monthly and per-transaction pricing structure that unfairly incentivized merchants to switch to other card networks.

The lawsuit sought damages for lost profits and an injunction to “promote healthy competition in general-purpose debit card network services.”

The trial is scheduled for 2026. Visa has denied any irregularities.

The case went on for years before it was dismissed in 2018 by U.S. District Judge Lynn Hughes. The Fifth U.S. Circuit Court of Appeals, based in New Orleans reborn lawsuit and reassigned it to a new judge in 2022, questioning whether Hughes showed “ingrained skepticism about Pulse’s claims.”

The case is Pulse Network LLC v. Visa Inc, U.S. District Court for the Southern District of Texas, No. 4:14-cv-03391.

For Pulse: David Beck of Beck Redden

For visa: Liz Ryan from Weil, Gotshal and Manges

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