2024-03-11 12:21:46 ET
Summary
- Visa's strong financial performance is overshadowed by potential disruptions to its revenue model due to global regulatory changes, particularly around interchange fees.
- Regulatory adjustments in the US and Europe, such as proposed caps on interchange fees, could negatively impact Visa's revenue derived from interchange fees.
- Visa's 10-K filings highlight the significant influence of regulations on its business, including the Interchange Fee Regulation in Europe and the Dodd-Frank Act in the US.
Investment Thesis
With potentially impeding interchange regulations on the horizon, I believe Visa ( V ) stands at a crossroads, characterized by its strong financial performance but dealing with the global regulatory changes, particularly around interchange fees....
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Visa: Interchange Fee Regulation Risk Is A Problem