EU to Take a Hard Look at Visa Practices Next Year

Visa can expect some close, European scrutiny in 2008.  European Union Competition Commissioner Neelie Kroes has said that she and her staff would like to take a closer look at some of Visa’s business practices when an antitrust exemption for the credit card company runs out.

The issue?  Interchange fees – something which the EU has been keeping its eyes on for awhile now with regards to the credit card company.  The European Commission investigated Visa regarding these fees — paid by merchant banks to card-issuing banks for over-the-counter payments — and came to an agreement with Visa in 2002. However, that agreement runs out at the end of December.

The agreement has protected Visa from EU antitrust action.  That may not be the case come 2008

"I will say that when our exemption decision on Visa expires at the end of this year, we will look again at the effect of their interchange fees on competition," Kroes said in remarks prepared for delivery at the London School of Economics.