Mastercard (MA) and Visa (V) Slammed On Vote To Curb Card Fees, But Analyst Sees Only Minor Impact
May 14, 2010 8:57 AM EDT
Shares of Mastercard Incorporated (NYSE: MA) and Visa (NYSE: V) are under heavy pressure this morning following news Thursday evening that the Senate voted in favor of Senator Durbin's interchange amendment which would impose new rules for restricting merchant-paid debit interchange fees as well as allowing merchants more freedoms to charge different prices based on payment type.
Shares of Mastercard are down 9% and Visa is down 8.5%.
Commenting on the news, analyst at Deutsche Bank said, "While the market will certainly view this as a big setback for interchange and is likely to pressure V/MA shares on Friday, we still think interchange fails to make it into the final compromise bill, given that key influential lawmakers in the House remain against it."
Even if it passes, the firm doesn't think the impact will be be large.
The firm continues to believe the stock look attractive on these headline pressures.