'U.S. Fed Set To Revise Debit Card Fee Caps Pitting Banks Against Retailers' - Reuters
Portfolio Pulse from Benzinga Newsdesk
The U.S. Federal Reserve is expected to propose a review of the fees banks can charge retailers for debit card transactions. This could lead to a legal battle between the two industries. The fees, which have been criticized by retailers as disproportionately high, generated around $24.31 billion for lenders in 2019. The Retail Industry Leaders Association expects the Fed to propose lowering the caps. This news sent shares in credit card companies Visa and Mastercard lower.
October 25, 2023 | 4:43 pm
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NEGATIVE IMPACT
Mastercard's stock price may be negatively impacted if the Federal Reserve lowers the caps on debit card transaction fees.
Mastercard, as a credit card company, benefits from the fees charged on debit card transactions. If these fees are lowered, it could reduce Mastercard's revenue and negatively impact its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Visa's stock price may be negatively impacted if the Federal Reserve lowers the caps on debit card transaction fees.
Visa, as a credit card company, benefits from the fees charged on debit card transactions. If these fees are lowered, it could reduce Visa's revenue and negatively impact its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80