Visa, Mastercard Shares Are Moving Lower: What's Going On?
Portfolio Pulse from Adam Eckert
Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) shares are moving lower following reports that the Federal Reserve is planning to lower the fees merchants pay on debit card transactions. The Fed is expected to submit a proposal that would lower the fees, which have not been changed since 2011. Visa processed more than $14 trillion in total transactions in 2022, while Mastercard processed more than $8 trillion.
October 18, 2023 | 1:23 pm
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NEGATIVE IMPACT
Mastercard's shares are moving lower due to the Federal Reserve's plan to lower debit card transaction fees.
Mastercard's revenue is largely dependent on transaction fees. If the Federal Reserve lowers these fees, Mastercard's revenue and profitability could be negatively impacted, leading to a decrease in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Visa's shares are moving lower due to the Federal Reserve's plan to lower debit card transaction fees.
Visa's revenue is largely dependent on transaction fees. If the Federal Reserve lowers these fees, Visa's revenue and profitability could be negatively impacted, leading to a decrease in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100