June 8, 2011
The shares for several major card networks dropped Wednesday after the Senate defeated legislation that would delay implementation of new debit interchange regulations as mandated by the Durbin amendment of the Dodd-Frank bill.
Barron’s reports MasterCard and American Express were both down 1.8 percent, while Visa fell 3.6 percent.
“The failure to delay the rules would initially hit credit card issuers, including big banks like JPMorgan Chase (JPM), but the pain will invariably trickle down to processors like Visa and Mastercard,” reports Barron’s. “It could limit the volume of debit card transactions, as well as interfere with future negotiations with credit card issuers. American Express (AXP) is not reliant on debit cards, but its stock does tend to dip along with the others.”
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