Visa drops after report says Justice Department investigates debit card trade

Visa shares fell sharply on Friday afternoon after a report said the Justice Department opened an investigation into its debit card activity and possible anti-competitive practices.

The department’s antitrust division has begun collecting information on whether Visa, the largest card network in the United States, has limited the ability of merchants to route debit card transactions over less expensive networks, according to anonymous sources who spoke with the Wall Street Journal.

These sources added that DOJ investigators’ questions focused on online debit card transactions, but also included inquiries about in-store issues.

Visa, which had seen its shares under pressure earlier on Friday, fell sharply from about $ 218.50 per share to about $ 209 per share around 11:30 a.m. in New York after the Journal report. Its losses lowered the stock by around 5% on the session.

The Justice Department did not immediately respond to CNBC’s request for comment. Visa declined to comment.

The investigation focuses on the role of network fees, fees that payment processors charge merchants in return for access to the processor’s extensive network, according to the report.

Investigators will seek to determine whether Visa’s fee policies illegally give it an unfair market dominance, according to the Journal.