NEW YORK–(BUSINESS WIRE)–Fitch Ratings expects that proposed limits on debit card interchange fees, as contained in a Senate Amendment passed May 13, should be neutral to First Data Corp.’s (FDC) expected financial performance going forward. The proposed regulation, if passed into law, would limit Visa and Mastercard’s ability to determine interchange fees for all card issuers with assets over $10 billion (which the senate estimates at 1% of total card issuers). Instead, interchange fees will be determined by each bank with maximum limits set by the Federal Reserve. The amendment is intended only for debit cards and does not include credit cards.
Fitch Expects Proposed Interchange Regulation to Be Neutral to First Data | Business Wire