Visa sued by ACCC over alleged misuse of power

As reported in smh.com.au, Australia’s competition watchdog (the ACCC) is taking Visa, the world’s largest electronic payment network, to court for misuse of market power.

The case is about currency conversion when foreign credit cards are used for purchases in Australia.

The credit card company allegedly banned Australian retailers from using any other currency conversion system, and that visitors in Australia were forced to use Visa’s currency conversion when withdrawing cash at automatic tellers.

‘‘The Australian Competition and Consumer Commission is concerned that Visa sought to stop the growth of competing dynamic currency conversion services and, as a result, limit the choices available to consumers,’’ chair Rod Sims said.

‘‘The alleged conduct by Visa gives rise to three concerns for the ACCC. First, it is alleged that travellers to Australia using a Visa payment card did not get to choose who does their currency conversion when withdrawing cash from an ATM.

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