June 14 (Reuters) - Discover Financial Services ( DFS )

unit Pulse Network ( TPNI ) has agreed to settle a lawsuit in Texas

accusing Visa of obstructing competition in the

multibillion-dollar debit card network services market, causing

merchants to pay higher fees.

Pulse and Visa disclosed the accord in a court filing on

Friday in federal court in Houston, where Pulse had sued the

payment card giant in 2014. Pulse said it was dismissing its

case with "prejudice," meaning that it cannot be refiled.

The court filing, signed by both sides, did not reveal the

terms of the settlement. The companies did not respond to

requests for comment or additional information.

Pulse's lawsuit said Visa set up a monthly and

per-transaction pricing structure that unfairly incentivized

merchants against switching to other card networks.

The lawsuit sought compensation for lost profits and a court

order to "promote healthy competition for general purpose debit

card network services."

A trial was scheduled for 2026. Visa had denied any

wrongdoing.

The case had languished for years before being dismissed in

2018 by U.S. District Judge Lynn Hughes. The New Orleans-based

5th U.S. Circuit Court of Appeals revived the lawsuit and

assigned it to a new judge in 2022, questioning whether Hughes

had shown "ingrained skepticism about Pulse's claims."

The case is Pulse Network LLC v. Visa Inc ( V ), U.S. District

Court for the Southern District of Texas, No. 4:14-cv-03391.

For Pulse: David Beck of Beck Redden

For Visa: Liz Ryan of Weil, Gotshal & Manges

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