Visa, Mastercard's $30B Settlement: Analyst Sees 'More Record Credit Card APRs In The Short Term'
Visa, Mastercard's $30B Settlement: Analyst Sees 'More Record Credit Card APRs In The Short Term'
Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) have made headlines with their groundbreaking $30 billion settlement with U.S. merchants.
The settlement effectively ends two decades of antitrust litigation surrounding swipe fees and merchant restrictions.
Redditor WoodKite echoed the news on r/stocks.
Related News: Visa and Mastercard Reach Deal to Lower Swipe Fees, A Win for Merchants and Potential Boost for Consumer Choices: Analyst
The agreement aims to cap credit interchange rates for the next five years; alleviate financial burdens on merchants; and broaden consumer payment options.
Mastercard, Visa, and plaintiffs' lawyers released statements revealing that the settlement will introduce reduced credit interchange rates and provide merchants with greater flexibility in accepting digital payments.
"By engaging directly with merchants, we've reached a settlement that offers significant concessions addressing the genuine concerns raised by small businesses," Visa North America President Kim Lawrence said.
Rob Beard, Chief Legal Officer at Mastercard, echoed this sentiment, stating, "As the court reviews the settlement, our focus remains on delivering consumers, small businesses, and all business owners a superior payment experience, exceptional value, and peace of mind."
Pending court approval, analysts project that the outlined policy adjustments in the settlement will yield savings exceeding $29.79 billion over the initial five-year period.
Furthermore, merchants are anticipated to gain increased bargaining power, resulting in even greater savings in negotiations with Visa and Mastercard.
APR At 24.66% Is Back On The Climb
In parallel, LendingTree credit analyst Matt Schulz provided exclusive insights to Benzinga on the broader credit industry landscape. "The Fed isn't going to lower rates anytime soon, and it is becoming increasingly unlikely that card issuers will do it either," he said.
Schulz cautioned that despite the Federal Reserve's reluctance to lower rates, credit card APRs continue to climb. March marks the 24th month out of 25 where APRs have risen. "We'll likely see more record credit card APRs in the short term, with rates for those who don't have perfect credit perhaps climbing the most, says Schulz.
"The average APR on a new credit card offer right now is 24.66% and is back on the climb, despite the Fed taking its foot off the gas," Schulz added. He emphasized the importance of consumer advocacy and negotiation in navigating the challenging credit environment. "With delinquencies and debt totals rising, some banks are becoming more reluctant to take on transferred balances." "The fees with 0% balance transfer credit cards rose for the second straight year," he added.
"Three out of every four cardholders who asked for a lower interest rate on a credit card in the past year got one, according to a 2023 LendingTree report," Schulz remarked.
Image: Shutterstock
Visa Inc(紐約證券交易所代碼:V)和萬事達卡公司(紐約證券交易所代碼:MA)與美國商家達成了開創性的300億美元和解協議,成爲頭條新聞。
該和解協議實際上結束了二十年來圍繞刷卡費和商戶限制的反壟斷訴訟。
Redditor WoodKite 在 r/stocks 上回應了這一消息。
相關新聞:分析師:Visa和萬事達卡達成協議以降低刷卡費,這對商家來說是一個勝利,也可能增加消費者的選擇
該協議旨在限制未來五年的信貸互換利率;減輕商戶的財務負擔;並擴大消費者支付選項。
萬事達卡、維薩和原告的律師發表聲明,透露該和解協議將降低信用交換率,併爲商戶提供更大的靈活性來接受數字支付。
Visa北美總裁金·勞倫斯說:“通過直接與商家接觸,我們達成了和解,提供了重大讓步,以解決小型企業提出的真正擔憂。”
萬事達卡首席法務官羅布·比爾德也表達了這一觀點,他說:“在法院審查和解協議時,我們的重點仍然是爲消費者、小型企業和所有企業主提供卓越的支付體驗、卓越的價值和安心。”
在法院批准之前,分析師預計,和解協議中概述的政策調整將在最初的五年內節省超過297.9億美元。
此外,預計商家將獲得更大的議價能力,從而在與維薩和萬事達卡的談判中節省更多資金。
年利率爲24.66%又回到了攀升期
同時,LendingTree信貸分析師馬特·舒爾茨就更廣泛的信貸行業格局向本辛加提供了獨家見解。他說:“聯儲局不會在短期內降低利率,髮卡機構也越來越不可能降低利率。”
舒爾茨警告說,儘管聯儲局不願降低利率,但信用卡年利率繼續攀升。3月是年利率上漲的25個月中的第24個月。舒爾茨說:“在短期內,我們可能會看到更多創紀錄的信用卡年利率,信用不完善的人的利率可能上升幅度最大。”
舒爾茨補充說:“目前新信用卡優惠的平均年利率爲24.66%,儘管聯儲局放棄了步伐,但仍在攀升中。”他強調了消費者權益倡導和談判在應對充滿挑戰的信貸環境中的重要性。“隨着拖欠額和債務總額的增加,一些銀行越來越不願意承擔轉移餘額。”他補充說:“餘額爲0%的信用卡費用連續第二年上漲。”
舒爾茨說:“根據2023年LendingTree的一份報告,在過去一年中要求降低信用卡利率的每四名持卡人中就有三人獲得了一張信用卡利率。”
圖片:Shutterstock
譯文內容由第三人軟體翻譯。
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