Credit card companies were hit after-hours on Tuesday. The decline relates to a proposal in Europe that would cap transaction fees on cards. According to the Financial Times, an EU commission proposed a 0.2% ceiling on all consumer debit transactions and 0.3% cap on credit card transactions, introduced after a two-year transition period where the ceiling applies only to cross-border fees. The changes are seen cutting into fees earned by credit card companies in the EU.
Shares of Visa (NYSE:
V) Mastercard (NYSE:
MA) and American Express (NYSE:
AXP) are trading lower on the news.
