Visa Profit Slips But Beats Estimates; Reform Impact Unclear

Visa Inc., the top credit and debit card payment network, posted its third-quarters profit at $716 million, or 97 cents a share, slipping 2 percent compared to a year ago but beating Wall Street estimates. For its quarter ended June 30, the transactions processing giant exceeded analysts’ expectations of 93 cents per share.

Retailers Win, But MasterCard, Visa Catch Break in Fee Deal

Retailers large and small are closer to a years-long goal of lower “interchange fees” – the per-transaction cost charged by banks on the MasterCard and Visa debit cards used by customers. But under a new compromise, the network card giants got a break by dodging regulation now directed at major banks that issue the debit cards, including Bank of America, JPMorgan Chase, Citigroup and Capital One.

Debit Card Issuers: 30% Likely to ‘Opt In’ for Overdraft Plans

Debit card issuers expect 30 percent of consumers to “opt in” to overdraft services under new rules that prohibit financial institutions from arbitrarily imposing fees for overdrawing an account. Large banks expect 20 to 40 percent of their customers to opt in.

Will Consumers Win with Regulated Debit Card ‘Swipe’ Fees?

After years of attempting to even get a bill on the floor of Congress, business groups finally saw enough support to draw a bipartisan vote in the Senate for the first-ever regulation over the fees charged merchants by payment networks Visa and MasterCard. In a 64-33 vote, the U.S. Senate Thursday approved an amendment loosening the grip Visa and MasterCard have enjoyed on debit card transaction fees passed on to the banks that carry their cards.

Retailers Hail Senate Vote to Restrict Card ‘Swipe Fees’

Handing the banking industry a defeat and possible price breaks for consumers, the Senate today approved restrictions on the “swipe fees” that MasterCard and Visa payment networks charge merchants on card transactions. In a 64-33 vote, the amendment introduced by Assistant Senate Majority Leader Dick Durbin, D-Illinois, would remove “anti-competitive provisions” from Visa and MasterCard contracts that would allow merchants to offer customers discounts for choosing a credit or debit card, or opting for cash.

Senator: Reform Unfair Credit, Debit Card ‘Swipe Fees’

A leading Democratic senator wants the Federal Reserve to determine if interchange fees – charged businesses every time a customer uses a credit or debit card – are “reasonable and proportional” to the costs of a transaction. Sen. Dick Durbin, D-Illinois, said he will be introducing an amendment this week calling for the first restrictions on the controversial “swipe” fees that merchants have to pay MasterCard and Visa.

MasterCard Rings Up 23% Profit, But Below Forecasts

A day after its dominant rival posted higher-than-expected earnings, MasterCard came in below analysts’ estimates with a 23 percent profit increase for the fourth quarter. The No. 2 card payments network saw single-digit growth in both dollar volume and processed transactions, compared to double-digit increases in transactions reported this week from rival Visa.

Twitter Founder’s Credit Card Device Faces Challenges

With much fanfare recently, Twitter co-founder Jack Dorsey started public testing of a new device, dubbed Square, that attaches to an iPhone and accepts the swipe of a credit card for small business owners. But the outlook has changed for the start-up that would cater to business owners who can’t deal with the cost or hassles of merchant accounts. A long-established company in the credit card transactions business will beat Square to market with a smart phone card reader, PAYware Mobile, which also targets low-volume businesses.

Merchants to Get $1B Left from Visa/Mastercard Settlement

Checks totaling more than $1 billion will be mailed this week to more than a half million merchants in the final payouts from Visa and Mastercard stemming from a 2003 lawsuit settlement, said the National Retail Federation. The retailers alleged that Visa and Mastercard violated federal anti-trust law by requiring merchants who accept their credit cards to also accept their signature debit cards.

Report: Consumer Benefit Uncertain in Card Fee Debate

Restricting fees that retailers have to pay banks for accepting credit cards could benefit consumers “if merchants reduced prices for goods and services,” congressional auditors concluded in a report today. But “identifying such savings would be difficult,” the report by the Government Accountability Office found.