pandreae

The Great MasterCard - Visa Debates

Like one of the previous comments, I also have been involved with Visa and MAsterCard during my career. What I think is interesting is what will happen with the recent bill being put forward to Congress HR 5546 - judiciary.house.gov/he....

Visa and MasterCard earn their income on processing transactions and the volume that passes through their systems. Yes, a recession lowers their volume, for a time. In the long run we always come out of a recession and cardholders resume purchasing and cards are becoming the norm for making payments. The people that lose if Governments continue to regulate will be the Banks that Issue MasterCard and Visa cards. Not MasterCard and Visa.

They may have to play by new rules but their role remains the same and frankly what they can offer as services in their new for profit mode can only increase their bottom lines.

Long term these two compnanies are good buys for long term investors. Pick your time and hold is my recommendation.