US Banks Anticipate Modest Hit from Visa and Mastercard Agreement on Swipe Fees
US Banks and the Visa-Mastercard Swipe Fee Deal
U.S. banks are bracing for a modest impact on their earnings following the $30 billion settlement aimed at limiting credit and debit card fees for merchants, orchestrated by payment giants Visa and Mastercard. The settlement is expected to affect the interchange fees paid by merchants, which normally comprise small fixed fees in addition to a percentage of total sale amounts averaging between 1.5% to 3.5% per transaction, according to Bankrate.com.
J.P.Morgan noted that based on a preliminary assessment, the impact on earnings per share (EPS) could be in the range of 1%-2%, before considering any mitigation strategies using retail card volumes.
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