Key Facts
• July 22, 2025: Japan’s Fair Trade Commission issued its first administrative action against Visa.
• Visa restricted Japanese credit card companies from using non-Visa systems.
• The action targeted Visa’s Singapore-based Asia-Pacific operations.
• The Commission applied a “commitment procedure” without recognizing legal violations.
• Visa’s improvement plan was approved by the Commission.
• Credit card transactions involve “interchange fees” (IRF) paid between issuing and managing companies.
• Visa controlled IRF rates and offered discounts only for using its system.
• Since November 2021, Visa excluded competitors’ systems to increase revenue.
• The case highlights anti-competitive practices in the payment processing industry.
Summary
Japan’s Fair Trade Commission issued its first administrative action against Visa on July 22, 2025, targeting its Asia-Pacific operations based in Singapore. Visa restricted Japanese credit card companies from using non-Visa systems, altering its policies since November 2021 to exclude competitors and boost revenue. The Commission applied a “commitment procedure,” approving Visa’s improvement plan without recognizing legal violations. This case underscores anti-competitive practices in the payment processing industry, particularly regarding Visa’s control over interchange fees and system usage.
