PayPal Argues Against Fee Cap as Fed Decision Looms
This article is for subscribers only.
PayPal Inc., the fastest-growing unit at online marketplace EBay Inc., said the Federal Reserve shouldn’t subject the company to a cap on debit-card transaction fees, a move that could threaten most of its U.S. revenue.
The Fed is seeking public comment about whether limits passed by Congress should apply to “non-traditional” payment systems such as PayPal that are vying for part of the $4 trillion U.S. market dominated by Visa Inc. and MasterCard Inc. PayPal’s business would be damaged if it’s regulated like payment-card networks, according to Patricia Hewitt, a director at consulting firm Mercator Advisory Group.