How Visa And Mastercard's New Fees Hike Are Impacting Your Wallet And Local Businesses!
Portfolio Pulse from Anusuya Lahiri
Visa Inc (V) and Mastercard Inc (MA) are planning to increase credit card fees, primarily for online transactions, in October and April. This could cost businesses significantly, with merchants potentially paying an additional $502 million in fees yearly. The fee increase is justified as necessary for covering expenses related to fraud prevention and innovation. The revenue from these fees often funds credit card rewards programs. The fee hike is also seen as a response to the surge in online spending, as reflected in Amazon.Com Inc's (AMZN) successful Prime Day event.

August 30, 2023 | 1:58 pm
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NEUTRAL IMPACT
The fee increase by Visa and Mastercard is seen as a response to the surge in online spending, as reflected in Amazon's successful Prime Day event. This could potentially impact Amazon's business.
The fee increase by Visa and Mastercard could potentially impact Amazon's business, as it could lead to increased costs for the company. However, the impact is likely to be minimal, as Amazon has a diverse revenue stream.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Mastercard is planning to increase credit card fees, which could lead to increased revenues. However, this move could also spark backlash from merchants and consumers.
The fee increase could lead to increased revenues for Mastercard. However, it could also lead to backlash from merchants and consumers, which could negatively impact the company's reputation and stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Visa is planning to increase credit card fees, which could lead to increased revenues. However, this move could also spark backlash from merchants and consumers.
The fee increase could lead to increased revenues for Visa. However, it could also lead to backlash from merchants and consumers, which could negatively impact the company's reputation and stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100