Bloomberg News

Visa Falls After Court Ruling on Swipe Fees: San Francisco Mover

July 31, 2013

Visa Inc. (V:US), the world’s biggest payment network, fell the most in two years after a judge ruled that the Federal Reserve had erred by inflating the debit-card fees that banks can charge retailers.

Visa fell as much as 11 percent in New York trading before dropping 5.9 percent to $180.15 at 12:43 p.m., the most since August 2011. Swipe, or interchange fees, are set by Foster City, California-based Visa and MasterCard (MA:US) Inc., which collect the money and remit it to card-issuing member banks.

U.S. District Court Judge Richard Leon in Washington ruled today that the Fed considered data it wasn’t allowed to use in setting a 21-cent cap on debit-card fees under the Dodd-Frank Act of 2010. The decision handed a victory to retailers who challenged the fees as being too high.

MasterCard, the second-biggest U.S. network, slid as much as 5.7 percent before falling 0.2 percent to $600.38.

To contact the reporter on this story: Donal Griffin in New York at dgriffin10@bloomberg.net

To contact the editors responsible for this story: Christine Harper at charper@bloomberg.net; David Scheer at dscheer@bloomberg.net


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • V
    (Visa Inc)
    • $222.21 USD
    • 2.99
    • 1.35%
  • MA
    (MasterCard Inc)
    • $78.02 USD
    • 0.67
    • 0.86%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus