Visa, MasterCard Climb as Fed Increases Caps on Debit-Card Fees
Visa, MasterCard Climb as Fed Raises Debit Caps
Thinkstock
Visa Inc. (V) and MasterCard Inc. (MA), the world’s biggest consumer-payment networks, both surged more than 9 percent after the Federal Reserve moved to cap debit-card transaction fees at 21 cents.
Visa Inc. (V) and MasterCard Inc. (MA), the world’s biggest consumer-payment networks, both surged more than 9 percent after the Federal Reserve moved to cap debit-card transaction fees at 21 cents. Photographer: Thinkstock
Visa, MasterCard Climb as Fed Increases Caps on Card Fees
Daniel Acker/Bloomberg N
Mastercard and Visa logos are pictured on credit cards in New York.
Mastercard and Visa logos are pictured on credit cards in New York. Photographer: Daniel Acker/Bloomberg N
Visa Inc. (V) and MasterCard Inc. (MA), the world’s biggest consumer-payment networks, both surged more than 9 percent after the Federal Reserve moved to cap debit-card transaction fees at 21 cents.
Visa advanced 9.1 percent, to $82.15 at 3:12 p.m. in New York Stock Exchange composite trading. MasterCard rose 9.2 percent, to $303.92
The cap on swipe fees, also called interchange, was mandated by the Dodd-Frank Act. San Francisco-based Visa and MasterCard, based in Purchase, New York, set interchange fees that are paid by merchants and pass the money to card issuers including Bank of America Corp. (BAC) and Wells Fargo & Co. (WFC)
The cap, which will reduce the fees merchants pay to accept debit cards, replaces a formula that averages 1.14 percent of the purchase price.
Visa had gained 7 percent this year through yesterday after falling 20 percent in 2010, while MasterCard had gained 24 percent this year after last year’s 12 percent decline.
To contact the reporter on this story: Dakin Campbell in San Francisco at dcampbell27@bloomberg.net
To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net.
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