The Winners & Losers of Debit Card Fee Ruling

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Aug. 6 (Bloomberg) -- Barclays Capital's Darrin Peller discusses a U.S. District Court ruling that the Federal Reserve must rewrite rules that cap debit card interchange fees. He speaks with Olivia Sterns on Bloomberg Television's "Street Smart." (Source: Bloomberg)

It is time for bloomberg on the market.

All three major u.s. indices ending the day in the red kamal down more than half a percent.

-- in the red, all down more than half a percent.

We do want to highlights of after the bell earnings.

Let's start with disney.

It beat analysts' estimates.

Reported record gains.

And 21st century fox reported its first earnings report since splitting from newscorp.

It got its biggest lift from its cable properties.

It is said to release a 24-hour sports channel later this year.

Mastercard and visa are going beyond headlines tuesday how a renewal of -- to see how renewal fees on the the debit cards will impact finances.

It thank you for joining us.

Last week, a federal judge ruled it was inappropriate the inflating the amount banks can -- inappropriate the inflating the amount banks could charge.

Is this a victory for retailers?

This could be perceived to be a victory for the retailers.

But the the ruling suggests that the federal reserve in its implementation, and relieve the interpretation of the law, which is part of dodd-frank, did not go far enough.

There are two components of the law.

One of them is the interchange rates.

Merchants pay every time we scored a card at a terminal.

They believe those fees did not come down enough.

They are saying it did not come down enough and should have been more.

Itis that were to occur, that could help retailers on a per transaction basis.

The other implication is called non exclusivity.

The center that is one of the main sponsors of the law was trying to get more compensation in the industry.

He was suggesting that these and mastercard have too much power.

He hopes that one day we have to see multiple brands all over the card, not only on the back, but also the front.

I could be pain for dinner with a car that is a visa and mastercard and a discovery.

What will be impacted by this ruling?

Important implications for visa and mastercard, given market share questions.

Right now, the the marron 75% to 80% of the signature credit card debt we are talking.

Maybe mastercard could gain a lot of share on the site if this were to happen.

On the other side, there are some retailers that could be watched on the bottom line.

Where are you telling your clients to buy?

We have seen the mastercard shares perform well, but we think there's a lot more to go on that stock.

The longer term could be a good

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change