Here's Why Mastercard Stock Is Still a Buy Despite Cap and Competition Headwinds

Credit cards have been in the news quite a bit in recent weeks as two proposals have come out that could significantly impact the industry.One is a proposal by President Donald Trump, and supported by lawmakers on both sides of the political aisle, to cap interest rates on credit cards at 10% for one year to help with the "affordability" crisis. The other is a bill, the Credit Card Competition Act (CCCA), that is targeted at breaking the duopoly that the two largest credit and payment processors -- Mastercard (NYSE: MA) and Visa (NYSE: V) -- control. In short, the bill would require large banks to offer merchants at least two networks for processing transactions, including one that isn't Mastercard or Visa. The idea is to create more competition and potentially lower credit card processing fees.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool