The Federal Reserve is in court to dispute retailers who claim the central bank didn’t follow the law in setting controversial debit swipe fee regulations.
The Dodd-Frank law which prohibits including costs when setting final rules is what the Fed is in court arguing against. The National Retail Federation, the Food Marketing Institute, the National Association of Convenience Stores and two retailers are being sued in U.S. District Court in Washington D.C.
“Both Visa (NYSE:V) and MasterCard (NYSE:MA) announced that they would charge the maximum amount of approximately 21 cents even on small-ticket transactions the card industry previously processed profitably for as little as 6 to 8 cents,” according to MarketWatch.
Here’s how MasterCard and Visa are trading on the news:
- Visa, Inc. (NYSE:V): V shares recently traded at $90.05, down $0.79, or 0.87%. Its market capitalization is $61.82 billion. They have traded in a 52-week range of $66.50 to $95.87. Volume today was 2,295,480 shares versus a 3-month average volume of 5,051,000 shares. The company’s trailing P/E is 16.94, while trailing earnings are $5.32 per share. The company pays a dividend of $0.88 per share for a dividend yield of 1.00%. About the company: Visa Inc. operates a retail electronic payments network and manages global financial services. The Company also offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities. Get the most recent company news and stock data here >>
- Mastercard Incorporated (NYSE:MA): MA shares recently traded at $348.37, down $6.18, or 1.74%. Its market capitalization is $44.21 billion. They have traded in a 52-week range of $215.00 to $373.55. Volume today was 449,743 shares versus a 3-month average volume of 1,350,810 shares. The company’s trailing P/E is 19.57, while trailing earnings are $17.80 per share. The company pays a dividend of $0.60 per share for a dividend yield of 0.20%. About the company: MasterCard, Inc. is a global payment solutions company that provides a variety of services in support of the credit, debit and related payment programs of financial institutions. The Company offers transaction processing services for credit and debit cards, electronic cash, automated teller machines, and travelers checks. Get the most recent company news and stock data here >>
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