Description

Visa’s Fee Shake-Up Could Crush Credit Card Points Programs; What’s The Impact?

Visa and Mastercard have agreed to a landmark settlement that could end a decades-long legal standoff with U.S. merchants over credit card processing fees. Filed in the Eastern District Court of New York, the settlement would cut interchange fees—typically between 2% and 2.5%—by 0.1 percentage points for five years and allow merchants more freedom in rejecting high-fee rewards cards. If approved by the court, the settlement would end litigation dating back to 2005, resolving antitrust claims from merchants about the networks’ “honor-all-cards” rules and alleged anti-competitive practices. The changes, though incremental on the surface, have sweeping implications for the payments ecosystem. With $72 billion in interchange fees collected in 2023 alone, even modest reductions could squeeze issuing banks and loyalty program providers. Consumers accustomed to lucrative rewards programs could also face cutbacks, especially if merchants begin steering away from premium cards.

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⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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