Brussels, 10/08/2001 (Agence Europe) - Following an in-depth investigation, the European Commission decided, on Friday, that a certain number of provisions of the Visa International payment card system were compatible with the rules of competition, especially the so-called "no-discrimination" rules (which prohibit merchants from invoicing additional costs to customers who pay with the Visa card or grant discounts to those paying in cash) and those that have been modified on the cross-border services. This is the first time that the Commission has passed down an "anti-trust" decision in the international payment card system. Although having initially criticised the principle of "no-discrimination", the Commission reached the conclusion that its abolition would not substantially increase competition (this conclusions is based on market surveys undertaken in Sweden and the Netherlands).
The Commission's decision covers other provisions governing the association Visa International, like the modified rules on cross-border services. Since the introduction of the latest modifications, Visa International allows for the cross-border issuing and acquiring of Visa cards without the prior establishment of a branch or subsidiary in the country concerned. Initially, Visa rules did not allow Visa member banks to issue cards to cardholders outside their country of establishment or to sign up merchants in other Member States, except in very limited circumstances. However, Visa International has now significantly increased the possibilities for cross-border issuing and acquiring of Visa cards. The Commission has also authorised the provisions on: (1) the "Honour All Cards Rule" of the Via system (merchants must accept all valid Visa-branded cards, irrespective of the identity of the issuer, the nature of the transaction and type of card being used); 2) Visa international's territorial licensing policy and the so-called "no acquiring without issuing rules" (which is held to promote the development of the system by ensuring a large card base, thereby making the system more attractive for merchants).