Visa Inc. is in talks with the Department of Justice to resolve its concerns over payment network rules barring merchants from imposing surcharges on credit card purchases, and related practices.
Joseph Saunders, the San Francisco card network's chairman and chief executive, told analysts during a conference call Wednesday that the Justice Department has said it is considering a civil lawsuit to challenge such rules.
"Although the outcome is uncertain at this time, we are … engaged in constructive negotiations with the department to resolve its concerns as it relates to Visa without litigation or payment of monetary damages," Saunders said.
The dispute dates from October 2008 when the agency requested documents and other information from Visa and competing payment networks about their policies on surcharging and merchants' ability to steer customers to other payment formats, according to Visa filings with the Securities and Exchange Commission.
"This is a dialogue that we've had with them for a lengthy period," Saunders said, adding, "Things are moving in a direction that we have anticipated, and so we're not unhappy with where we are."
A spokeswoman for MasterCard Inc. declined to comment on specific discussions the Purchase, N.Y., payments network has had with the Justice Department but said in an e-mail it has been "cooperating fully" since the agency issued its request.
