Visa Up, Mastercard Down (V, MA)

After the drubbing that both Visa V and Mastercard MA took yesterday, it's interesting to note the divergence in share prices today. Visa is up around 1.5% today, while Mastercard continues to get hit, down 0.8%. Yesterday, the Federal Reserve enacted that interchange debit card fees should be capped at 90% or 12 cents per transaction, far lower than what Wall Street was expecting. Wall Street expected a 50-60% haircut, and the drop severely hurt shares of Visa and Mastercard. American Express Company AXP, which was also impacted by the ruling, is also trading down, but American Express takes credit risk, whereas Visa and Mastercard do not. This is an interesting dichotomy and is something to watch over the coming months until the rule is enacted.
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