Visa and Mastercard Dispute Reports About Fee Hikes: Here's What Investors Need to Know
On Aug. 30, The Wall Street Journal reported that (NYSE: V) and Mastercard (NYSE: MA) planned to increase the fees that most merchants pay when accepting customers' credit cards. It said that the price hikes would go into effect in October and April.
The article quoted CMSPI, a consulting firm that works for merchants, which said the changes could result in an additional $502 million annually in merchant fees. The increased fees would be a drop in the bucket for Visa and Mastercard, which generated $31.8 billion and $23.6 billion in revenue over the past 12 months and could lead to further regulatory scrutiny.
On Tuesday, Visa and Mastercard responded, vehemently disagreeing with the assertions in the article. Here's what investors need to know.
Source Fool.com