INVESTOR'S BUSINESS DAILY | Visa and MasterCard were forced to cut processing fees in France on Monday and may soon be required to reduce fees in the U.S. on a pending trial.
Domestic Transactions Only
Under the new rules from French regulators, Visa and MasterCard will slash interbank fees to 0.28% from 0.5% and cut ATM fees to 0.55 euro (74 cents U.S.) from 0.75 euro ($1.01). The new regulations only apply to transactions within France, not with the rest of the European Union. Visa shares slipped 0.5% to 197.68 in the stock market today. MasterCard shares were flat at 686.04.
Legal Action in U.S.
Credit card companies are facing legal action in the U.S. over fees too. Retailers like Amazon (AMZN), Target (TGT) and Macy's (M) are taking a 2012 settlement with Visa and MasterCard over swipe fees back to court. The retailers believe that accepting the $7.25 billion settlement will limit them from pressing lawsuits against the companies in the future. The retailers accused the credit card companies and some large banks of charging extremely high interchange fees each time a customer used a card to purchase from them.
Article sourced from investors.com, September 23rd, 2013