Latest news with #VisaWorldwide
Japan Times
23-07-2025
- Business
- Japan Times
JFTC gives OK to Visa Worldwide's business improvement plan
The Japan Fair Trade Commission (JFTC) has approved a business improvement plan submitted by Visa Worldwide, which undertakes Visa card operations in Japan and other parts of the Asia-Pacific region. Through its investigation into a suspected violation of the antimonopoly law by Visa Worldwide, the JFTC concluded that swiftly executing proposed measures by the Singapore-based firm would restore a competitive environment under the so-called commitment procedures, the Japanese antimonopoly watchdog said in a press release Tuesday. In credit card transactions, sales data are transmitted from acquirers, or companies that enables retailers to accept payments by card, to card issuers through settlement service networks. An acquirer should pay a certain rate of fees to an issuer unless they are the same. The JFTC conducted an on-site inspection of Visa Worldwide's Japanese operation in July last year and has since found that the credit card operator notified acquirers in February 2018 of a plan to apply preferential rates to such fees only when they exclusively use the Visa Worldwide network and implemented the plan in November 2021. Some acquirers have actually come to take the advantage, according to people familiar with the matter. The commission, which took an administrative step against an international credit card brand for the first time ever, believes that Visa Worldwide's practice amounts to a transaction with a restraint condition prohibited by the law. However, it decided to refrain from imposing a severer sanction on the firm. "Better, cheaper networks should be provided through friendly competition between card companies," Masahiko Sogawa, a JFTC investigation division chief, said. In a comment, the Visa Worldwide Japan unit vowed to carry out the improvement measures to keep complying with the law.
23-07-2025
- Business
JFTC OKs Visa Worldwide's Biz Improvement Plan
Tokyo, July 23 (Jiji Press)--The Japan Fair Trade Commission has approved a business improvement plan submitted by Visa Worldwide Pte Ltd., which undertakes Visa card operations in Japan and other parts of the Asia-Pacific region. Through its investigation into a suspected violation of the antimonopoly law by Visa Worldwide, the JFTC concluded that swiftly executing proposed measures by the Singapore-based firm would restore the competitive environment under the so-called commitment procedures, the Japanese antimonopoly watchdog said in a press release Tuesday. In credit card transactions, sales data are transmitted from acquirers, or companies that enables retailers to accept payments by card, to card issuers through settlement service networks. An acquirer should pay a certain rate of fees to an issuer unless they are the same. The JFTC conducted an on-site inspection of Visa Worldwide's Japanese operation in July last year and has since found that the credit card operator notified acquirers in February 2018 of a plan to apply preferential rates to such fees only when they exclusively use the Visa Worldwide network and implemented the plan in November 2021. Some acquirers have actually come to take the advantage, according to people familiar with the matter. The commission, which took an administrative step against an international credit card brand for the first time ever, believes that Visa Worldwide's practice amounts to a transaction with a restraint condition prohibited by the law. However, it decided to refrain from imposing a severer sanction on the firm. [Copyright The Jiji Press, Ltd.]
Asahi Shimbun
23-07-2025
- Business
- Asahi Shimbun
FTC acts on Visa over suspected fee abuse to sway credit card firms
The Japan Fair Trade Commission in Tokyo's Chiyoda Ward has issued its first administrative action involving the credit card industry following a probe of Visa Worldwide Pte Ltd.'s Japanese subsidiary in July 2024. (Asahi Shimbun file photo) The Fair Trade Commission has obliged a Visa group company to adhere to its corrective action plan over suspicions that it effectively forced credit card companies to use the group's credit authorization system. Visa Worldwide Pte Ltd.'s Singapore headquarters submitted its voluntary plan following the FTC's investigation in accordance with the 'commitment procedure' based on the Anti-Monopoly Law, commission officials announced July 22. It was the FTC's first administrative action against the credit card industry. The commission approved the company's plan. Visa Worldwide will be required to report to the FTC on how the plan is implemented for five years. Visa is the largest international credit card network. Visa Worldwide, based in Singapore, operates the group's business in Asia, including Japan. Visa, which does not issue credit cards on its own, provides systems necessary for credit card transactions. It receives license fees from credit card companies that issue cards to consumers as well as from those that process payments made to retailers, restaurants and other businesses. The FTC investigation focused on Visa Worldwide's actions regarding the group's credit authorization system. When consumers pay with their credit card, credit card companies that manage affiliated outlets use this system for a fee to check the spending limit or possible fraudulent use with cardholders' credit card companies. According to the FTC, when Visa Worldwide changed its terms in November 2021 it rendered credit card companies that manage affiliated outlets ineligible for a discount in a type of commission charged for payments in certain industries unless they use Visa's credit authorization system. After the company announced the change in February 2018, the FTC said almost all credit card companies that had used a rival credit authorization system switched to Visa's system. The watchdog also shared that Visa received about 10 billion yen ($68 million) annually in fees charged to these companies for using its credit authorization system. The FTC conducted an onsite investigation of Visa's Japanese subsidiary last July on suspicion that the updated terms restricted free transactions of credit card companies and excluded companies that provide a rival credit authorization system. It concluded that Visa Worldwide's action constituted a suspected violation of the Anti-Monopoly Law that prohibits unfair trade practices such as 'trading on restrictive terms.' According to the Japan Consumer Credit Association, the country made about 116 trillion yen in payments via credit cards in 2024. A survey by the private research company Ipsos found that the Visa brand accounted for about 50 percent of that amount.
The Mainichi
23-07-2025
- Business
- The Mainichi
Visa told by Japan antitrust watchdog to reform credit info system
TOKYO (Kyodo) -- Japan's antitrust watchdog said Tuesday it had told Visa Worldwide Pte Ltd. to reform its business practices after concluding that the firm restricted and pressured card companies to use its credit information system. It marks the first administrative action taken by the Japan Fair Trade Commission against a credit card company. The commission said global credit card brand Visa Inc.'s Singaporean unit, which manages the Asia-Pacific region including Japan, had charged higher fees to other credit card firms that did not use its network to check credit information. The commission said the Visa unit has submitted plans to improve its practices, adding that it has accepted the plans. The company was exempted from facing fines or other punitive measures under the antimonopoly law. Visa Worldwide said in a comment "the plans will be fulfilled and a structure based on strong compliance will be maintained." According to the Japan Consumer Credit Association, as of 2020, the Visa credit card brand accounted for about half of the market share in Japan. The total amount of credit card transactions in the country in 2024 stood at 116 trillion yen ($785 billion). Credit card transactions involve an issuing company and management company, which both utilize a trusted reference system when a transaction is made, according to the watchdog. Interchange fees, typically set by global brands, are paid by the management company to the issuing company during a transaction, while the issuing company pays a service charge to a different company -- in this case Visa Worldwide -- providing the reference system. While Visa Worldwide had applied preferential rates under certain requirements, it altered the conditions from no later than November 2021 to necessitate the use of its network, leading some companies to switch to the system under Visa despite it costing more than others. Visa's practice is believed to have been aimed at increasing revenue by excluding competitors from the market. Japanese authorities had been investigating allegations the practice violated the antimonopoly law, which prohibits companies in a dominant position from imposing unfair trading terms on firms with a weaker standing. Tuesday's administrative action against Visa Worldwide does not mean that the practice "violated" the law. Under the plans submitted to the commission, the Visa unit will restore conditions for preferential rates to previous iterations. A third-party entity, approved by the watchdog, will also check for improvements and report to the commission over the next five years.
South China Morning Post
22-07-2025
- Business
- South China Morning Post
Japanese regulators find Visa pressured firms, hiked fees
Japan 's antitrust watchdog said on Tuesday it had told Visa Worldwide to reform its business practices after concluding that the firm restricted and pressured card companies to use its credit information system. Advertisement It marks the first administrative action taken by the Japan Fair Trade Commission against a credit card company. The commission said the global credit card brand's Singaporean unit, which manages the Asia-Pacific region including Japan, had charged higher fees to other credit card firms that did not use its network to check credit information. The commission said the Visa unit has submitted plans to improve its practices, adding that it has accepted the plans. The company was exempted from facing fines or other punitive measures under the antimonopoly law. According to the Japan Consumer Credit Association, as of 2020, the Visa credit card brand accounted for about half of the market share in Japan. The total amount of credit card transactions in the country in 2024 stood at 116 trillion yen (US$785 billion). Credit card transactions involve an issuing company and management company, which both utilise a trusted reference system when a transaction is made, according to the watchdog. Advertisement Interchange fees, typically set by global brands, are paid by the management company to the issuing company during a transaction, while the issuing company pays a service charge to a different company – in this case Visa Worldwide – providing the reference system.
