We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Visa, MasterCard in Trouble: ATM Fees Suits to Proceed
Read MoreHide Full Article
Visa Inc. (V - Free Report) and MasterCard Inc. (MA - Free Report) seem to have no reprieve from legal woes over ATM fees. On Thursday, the U.S. Supreme Court ruled that consumers can proceed with their class action lawsuits that accused the two companies and a number of banks of conspiring to fix inflated ATM fees.
The justices, however, dismissed two similar cases which they had previously approved for hearing. The companies had sought to challenge an Aug 2015 ruling by the District of Columbia Circuit Court of Appeals that had reinstated the three lawsuits. According to the court order, the cases were dismissed as the companies had changed their case arguments from previous petition. The court had been scheduled for oral arguments on Dec 7.
Plaintiffs, including several independent operators of ATMs and consumers, alleged that Visa and MasterCard adopted network rules which unlawfully restricted ATM operators from providing lower prices for transactions processed over networks that are not affiliated with Visa or Mastercard. These rules served the defendants as safeguard against competition from ATM networks offering lower charges. Such rules not only reduced the competition for the two companies, but also forced customers to pay artificially inflated ATM access fees.
Plaintiffs also claimed that the rules benefited the major banks – Bank of America Corp. (BAC - Free Report) , JPMorgan Chase & Co. (JPM - Free Report) and Wells Fargo & Company (WFC - Free Report) – which held stakes in MasterCard and Visa. The suit claimed that even after MasterCard and Visa went public in 2006 and 2008, respectively, the ATM rules remained unchanged.
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Visa, MasterCard in Trouble: ATM Fees Suits to Proceed
Visa Inc. (V - Free Report) and MasterCard Inc. (MA - Free Report) seem to have no reprieve from legal woes over ATM fees. On Thursday, the U.S. Supreme Court ruled that consumers can proceed with their class action lawsuits that accused the two companies and a number of banks of conspiring to fix inflated ATM fees.
The justices, however, dismissed two similar cases which they had previously approved for hearing. The companies had sought to challenge an Aug 2015 ruling by the District of Columbia Circuit Court of Appeals that had reinstated the three lawsuits. According to the court order, the cases were dismissed as the companies had changed their case arguments from previous petition. The court had been scheduled for oral arguments on Dec 7.
Plaintiffs, including several independent operators of ATMs and consumers, alleged that Visa and MasterCard adopted network rules which unlawfully restricted ATM operators from providing lower prices for transactions processed over networks that are not affiliated with Visa or Mastercard. These rules served the defendants as safeguard against competition from ATM networks offering lower charges. Such rules not only reduced the competition for the two companies, but also forced customers to pay artificially inflated ATM access fees.
Plaintiffs also claimed that the rules benefited the major banks – Bank of America Corp. (BAC - Free Report) , JPMorgan Chase & Co. (JPM - Free Report) and Wells Fargo & Company (WFC - Free Report) – which held stakes in MasterCard and Visa. The suit claimed that even after MasterCard and Visa went public in 2006 and 2008, respectively, the ATM rules remained unchanged.
Currently, Visa carries a Zacks #3 (Hold), while MasterCard carries Zacks #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>