Shares of American Express (NYSE:AXP) have dropped over the past 3 trading days a little over 8%. The company is known for the priciest credit card fees in the marketplace charged to merchants.
Last week, The Federal Reserve proposed cutting the “swipe” fees that merchants pay to accept debit cards by up to 84%. Such a move could sway merchants to lower cost solutions and away from higher cost American Express cards. American Express does not issue debit cards.
According to a recent third quarter report, American Express charges retailers who accept its credit and charge cards an average of 2.56% of the purchase price. Today’s news has shares of Visa (NYSE:V) and Mastercard (NYSE:MA) up on the potential for a grab of the American Express merchant market share. Research shares of AXP with our new high tech research tools >>
Disclosure: No positions.
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