Visa and Mastercard Take a Dive as Congress Eyes New Bill to Increase Credit Card Competition

Jun 08, 2023

Visa and Mastercard Take a Dive as Congress Eyes New Bill to Increase Credit Card Competition

Legislation that could boost competition for credit-card networks is expected to be re-submitted for consideration in Congress, resulting in the stocks of Visa and Mastercard slipping despite investors being doubtful about its chances.

When payments are made with credit or debit cards, merchants must comply with the card issuer’s network requirements. This means that if a customer pays using a Visa card, said payment must be handled through the Visa network. The same goes for Mastercard transactions. As a result, card issuers have more control over the fees they charge.

However, a new law, the Credit Card Competition Act, is anticipated to be presented in the Senate shortly, as Wall Street Journal reports. The proposed legislation would allow merchants to utilize alternative payment methods, boosting competition and perhaps decreasing fees they pay to card providers.

Last year, Sen. Dick Durbin proposed a bill similar to the one recently introduced. To garner more support for the current measure, he has secured two additional co-sponsors: Sen. Peter Welch of Vermont and Sen. J.D Vance of Ohio have both signed on in agreement.

Following the news, Mastercard’s stock dropped 2.3%, while Visa decreased 1.3%. No comments were given from either firm on the matter.

Still, not many investors believe the laws will be passed, as there is some hesitation among legislators to approve it, and there is a possibility of negative repercussions.

Darrin Peller, managing director at Wolfe Research, commented in a note Wednesday that it is unlikely for the bill to garner enough support throughout Congress. He noted that such legislation will put lawmakers in a difficult situation of choosing between merchants, banks, and other financial institutions, which he believes is “tricky politically.”

Many on Wall Street have expressed similar opinions despite the Senate bill gaining multiple sponsors.

Isaac Boltansky, managing director at BTIG, has expressed his bearish outlook on the bill’s prospects due to its complicated politics, potential security risks, and the negative impact on credit card rewards programs. According to Boltansky, if payments are forced to be spread across networks, card networks may have less incentive to invest in security and authentication on their networks.

Boltansky does not anticipate the proposal being passed into law this year, estimating its chance of success at no more than 20%. Despite that, investors are still nervous.

Subscribe Our Newsletter

Want to Beat Inflation? These 7 Funds Have 8% Returns
Want to Beat Inflation? These 7 Funds Have 8% Returns

For this approach, we sought closed-end funds that now pay out more than 8% and have returned more than 8% over the last five years. That should be in line with the CPI, which was up 8.5 percent from a year earlier in March, a level that many analysts believe marks the peak pace of price increases.

Banks and Finance
MicroStrategy Bitcoin Holdings Swell to $11 Billion

Nato

MicroStrategy Bitcoin Holdings Reach $11 Billion with Latest Purchase

MicroStrategy Bitcoin holdings have zoomed to $11 billion with the recent purchase of an additional 3,000 bitcoins. Explore MicroStrategy's stock forecast 2025.

Crypto
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Tamta

Guide to Craiyon: How To Use a New DALL-E Mini
Soon after OpenAI's inception, Google released Imagen, a direct rival that uses OpenAI's open-source code to build similarly stunning AI graphics that can again make images from basic sentences.

discover
Liquidity Risk

Liquidity Provider

Liquidity Risk

Let's find out what is the notion of liquidity risk, why should a trader get his orders executed instantly, and how to find and pick a reliable LP.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.