Visa 2009 Annual Report Download - page 123

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
U.S. Department of Justice Civil Investigative Demands
On September 27, 2007, the Antitrust Division of the United States Department of Justice (the "Division") issued a Civil Investigative Demand, or
"CID," to Visa U.S.A. that sought information regarding a potential violation of Section 1 or 2 of the Sherman Act, 15 U.S.C. §§ 1, 2. The CID sought
documents in response to several requests, which focused on Visa U.S.A.'s agreements with banks that issue Visa debit cards. On February 26, 2008, the
Division issued another CID to Visa U.S.A., seeking information regarding a potential violation of the Final Judgment, dated November 26, 2001, in United
States v. Visa U.S.A. Inc. et al., 163 F.Supp.2d 322 (S.D.N.Y. 2001). The CID sought documents, data and narrative responses to several interrogatories and
document requests, which focused on alleged termination and waiver provisions in certain agreements between Visa U.S.A. and Visa issuers. On February 5,
2009, the Division informed Visa that it closed the investigations that led to the issuance of the September 27, 2007 and February 26, 2008 CIDs.
On October 10, 2008, the Division issued a CID to Visa U.S.A. that seeks information regarding a potential violation of Section 1 or 2 of the Sherman
Act, 15 U.S.C. §§ 1, 2. The CID seeks documents, data and narrative responses to several interrogatories and document requests, which focus on certain Visa
U.S.A. policies relating to merchant acceptance practices, including Visa U.S.A.'s policies regarding merchant surcharging and merchants' ability to steer
customers to other forms of payment. Visa U.S.A. is cooperating with the Division in connection with the CID.
State Investigative Demands
On May 15, 2009, the Office of the Attorney General for the State of Ohio issued an Investigative Demand to Visa Inc. seeking information regarding a
potential violation of Chapter 1331 of the Ohio Revised Code, Ohio's antitrust law. The Ohio Attorney General is part of a multistate attorney general working
group. The Investigative Demand seeks copies of documents, data and narrative responses that Visa has produced to the Division pursuant to the CID issued
on October 10, 2008. The Investigative Demand focuses on certain Visa U.S.A. policies relating to merchant acceptance practices, including Visa U.S.A.'s
policies regarding merchant surcharging and merchants' ability to steer customers to other forms of payment.
As part of the multistate working group's investigation, the Office of the Attorney General of Texas issued a CID to Visa Inc. on October 9, 2009
seeking information regarding a potential violation of Sections 15.05 of the Texas Free Enterprise and Antitrust Act of 1983, Texas's antitrust law. The CID
seeks narrative responses to interrogatories that focus on certain Visa U.S.A. policies relating to merchant acceptance practices, including Visa U.S.A.'s
policies regarding merchant surcharging and merchants' ability to steer customers to other forms of payment. Visa Inc. is cooperating with the state Attorneys
General in connection with these requests.
Hill Country Custom Cycles
Robert Smith, individually and doing business as Hill Country Custom Cycles, filed a putative class action lawsuit against Visa Inc., several banks, and
a processor in U.S. District Court for the Central District of California on June 4, 2008. The plaintiff alleged that, due to fluctuations in currency conversion
rates, a transaction disputed by a cardholder and ultimately charged back to a merchant by its acquiring bank (a "chargeback") may result in a debit to a
merchant's account in excess of the
122