Visa Inc (NYSE: V) is expected to raise some
of its fees in 2017. According to Vantagecard.com, Visa is set to increase its "misuse of authorization" and "zero limit" fees
starting January 1, 2017.
As a result of the fee increase, some merchants are expected to see relative rate increases. The amount of these fee increases
were not specified.
Misuse Authorization Fee
This fee is applied to authorized transactions that are not settled or reversed within a specified time frame. "Card present
transactions" that have been submitted in error or canceled must be reversed within 24 hours, and reversals must be processed
within 72 hours to avoid a fee of $.045/occurrence. "This fee is in response to the growing usage of $1.00 authorizations by online
companies such as gateways and other payment service providers on behalf of merchants," according to KBW analysts.
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Zero Floor Limit Fee
The Zero Floor Limit fee occurs when settled transactions do not match approved authorization. This incurs a $0.10 fee.
The amount changes were not specified. "Ultimately we believe the upside to Visa shares will be driven by the opportunities
presented from the Visa Europe and Costco/USAA deal wins," said KBW.
KBW has an Outperform rating on Visa with a $99 price target.
At last check, Visa was down 0.46 percent at $81.88.
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Latest Ratings for V
| Date |
Firm |
Action |
From |
To |
| Sep 2016 |
Barclays |
Maintains |
|
Overweight |
| Sep 2016 |
Baird |
Maintains |
|
Outperform |
| Jul 2016 |
Barclays |
Maintains |
|
Overweight |
View More Analyst Ratings for
V
View the Latest Analyst Ratings
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