Visa, Mastercard Shares Are Moving Lower: What's Going On?

Visa Inc V and Mastercard Inc MA shares are moving lower Wednesday following reports suggesting the Federal Reserve is planning to push to lower the fees merchants pay on debit card transactions.

What Happened: According to a Wall Street Journal report, the Fed is preparing to submit a proposal that would lower the fees (21 cents plus 0.05% of the transaction total) merchants pay banks when consumers use debit cards to make purchases. 

Merchants have been pushing for lower fees for years. The transaction fee was set by the Fed in 2011 and has not been lowered since. According to people familiar with the matter, the central bank is expected to hold a meeting next week to vote on the proposed changes. 

Visa processed more than $14 trillion in total transactions in 2022, while Mastercard processed more than $8 trillion, per Benzinga Pro.

Keybanc analyst Josh Beck maintained Visa with an Overweight rating Wednesday and raised the price target from $265 to $275. Beck also maintained an Overweight rating on Mastercard and raised the price target from $435 to $440. 

See Also: Visa To Rally More Than 15%? Here Are 10 Top Analyst Forecasts For Wednesday

V, MA Price Action: Visa shares were down 1.37% at $237.90 and Mastercard shares were down 0.77% at $398.66 at the time of publication, according to Benzinga Pro.

Photo: Steve Buissinne from Pixabay.