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.
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