Visa Inc (V), Mastercard Inc (MA): The Debit Card Kingdom May Be Crumbling

When and if fees are cut, Mastercard Inc (NYSE:MA) and Visa Inc (NYSE:V) stand to lose the most. Still, overall transactions growth and the introduction of new fees will likely offset a good chunk of that lost revenue.

Investors should track the progress of the new rules and any potential Fed appeal, in addition to any reaction by Mastercard Inc (NYSE:MA) and Visa Inc (NYSE:V) to the decision.

American Express Company (NYSE:AXP) has no exposure to the debit card market, and thus was unfairly sent tumbling on the day of the decision. This unfounded drop could present a buying opportunity for investors looking to invest in the company.

As an overall investment, Mastercard Inc (NYSE:MA) appears to be the most attractive company, as its mix of high volume growth and healthy market share in both the debit and credit markets should position the company to prosper into the future.

All in all, even as debit card fees are likely to be cut within the next couple of years, Mastercard Inc (NYSE:MA) and Visa Inc (NYSE:V) should be able to weather the storm, and sustain massive profits for years to come.

Ryan Guenette has no position in any stocks mentioned. The Motley Fool recommends American Express, MasterCard, and Visa. The Motley Fool owns shares of MasterCard.

The article The Debit Card Kingdom May Be Crumbling originally appeared on Fool.com.

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