When Cheaper Isn’t Enough: The Economics of Debit Routing and Network Foreclosure
How loyalty-based pricing can raise the true cost of switching — and why the DOJ argues this may insulate Visa’s debit network from competition.
This post is a technical companion to our main analysis of the U.S. Department of Justice’s antitrust case against Visa Inc., explaining the economic mechanism behind the DOJ’s claim that debit routing contracts may lock out cheaper competing payment networks.
