Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  MasterCard    MA

MASTERCARD (MA)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Big credit card firms agree to cut fees they charge merchants: source

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/09/2018 | 12:34pm EST

OTTAWA — The federal government is announcing today that major credit card companies have agreed to lower the fees they charge the country's businesses.

A government source tells The Canadian Press that Ottawa has reached voluntary, five-year deals with Visa, Mastercard and American Express that the feds expect will help small and medium-sized companies save a total of $250 million per year.

Starting in 2020, Visa and Mastercard will reduce the fees they collect from businesses to an average annual effective rate of 1.4 per cent — down from 1.5 per cent — and narrow the gap between the highest and lowest rates they charge retailers.

American Express has agreed to provide more fairness and transparency as part of a separate voluntary commitment that recognizes its unique business model.

The changes, which are also expected to help consumers, are being unveiled at an Ottawa grocery store later today by Finance Minister Bill Morneau and Mary Ng, the new minister for small business and export promotion.

The source, speaking on condition of anonymity to discuss matters not yet public, says the reductions could help smaller businesses save thousands of dollars over the five-year period — and the government is hoping the extra funds will encourage owners to invest, expand and create jobs.

Ottawa expects the lower interchange rates will enable smaller firms to avoid being at a big competitive disadvantage compared to larger companies, which have more leverage in negotiating with credit card firms for reduced fees.

The government also expects consumers to benefit from the changes because the lower costs to businesses will enable them to keep prices lower.

In November 2014, Visa and Mastercard voluntarily agreed to reduce their average effective fees to 1.5 per cent over five years — a period that began in April 2015.

Morneau announced in September 2016 that an independent audit found that the companies had met their respective commitments. At the time, the government also said it would conduct a review to ensure there was adequate competition and transparency for businesses and consumers when it comes to credit card fees.

© 2018 The Canadian Press. All rights reserved., source Canadian Press DataFile

Stocks mentioned in the article
ChangeLast1st jan.
AMERICAN EXPRESS COMPANY 1.00% 100.48 Delayed Quote.4.37%
MASTERCARD 1.35% 202 Delayed Quote.7.08%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MASTERCARD
11:08aMASTERCARD : changes rules on automatic billing for free trials
AQ
10:45aMASTERCARD : changes rules on automatic billing for free trials
AQ
10:44aMASTERCARD : changes rules on automatic billing for free trials
AQ
01/18MASTERCARD : Square launches debit card for SMBs
AQ
01/17MASTERCARD : Cracks Down On ‘Free Trial' Subscriptions
AQ
01/17MASTERCARD : new policy aims to prevent unwanted subscriptions
AQ
01/17American Express misses estimates on slowing customer spending; shares drop
RE
01/17MASTERCARD : tweaks policy to disable auto-billing after free trials
AQ
01/16MASTERCARD : New Global Partnership Between NYC & Company and Mastercard Will En..
PU
01/16MASTERCARD : New Global Partnership Between NYC & Company and Mastercard Will En..
AQ
More news
Financials ($)
Sales 2018 14 948 M
EBIT 2018 8 382 M
Net income 2018 6 522 M
Finance 2018 2 417 M
Yield 2018 0,50%
P/E ratio 2018 32,53
P/E ratio 2019 26,93
EV / Sales 2018 13,8x
EV / Sales 2019 12,1x
Capitalization 209 B
Chart MASTERCARD
Duration : Period :
MasterCard Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends MASTERCARD
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 39
Average target price 227 $
Spread / Average Target 13%
EPS Revisions
Managers
NameTitle
Ajaypal S. Banga President, Chief Executive Officer & Director
Ari Sarker Co-President-Asia Pacific
Richard Neil Haythornthwaite Chairman
Edward McLaughlin President-Operations & Technology
Martina T. Hund-Mejean Chief Financial Officer
Sector and Competitors
1st jan.Capitalization (M$)
MASTERCARD7.08%208 624
VISA4.97%305 282
PAYPAL HOLDINGS8.36%107 372
PALO ALTO NETWORKS INC7.94%19 289
AVAST0.42%3 530
MIMECAST LTD2.74%2 075