5 Credit Card Stocks Set To Spring Higher

BRUSSELS — Banks will have to limit the fees they charge on card payments under proposals from the European Commission on Wednesday that would also scrap surcharges on shoppers paying with plastic. The draft law would squeeze an important source of income for banks but should bring lower prices for consumers. It will also end the practice of bumping up the cost of airline tickets, for example, when consumers use their credit card to pay.

The established U.S.-based payment processing companies revealed clues about their future strategies in fourth quarter earnings calls last week.

The Competition Tribunal may have dismissed a complaint against Visa and MasterCard over card fees charged to merchants, but other conclusions in its ruling Tuesday could lay out a “road map” for retailers in the next stage of battle with the financial giants: class-action lawsuits.

By the end of 2014, the majority of small and medium-sized businesses will use mobile credit card readers, according to online survey data from BIA/Kelsey.  Mobile credit card readers are small devices that attach to a tablet or smartphone, usually through the audio jack, and allow merchants to swipe credit cards and process payments without needing expensive and clunky register systems.  The survey report is based on the responses of 600 small and medium-sized businesses during the third quarter of 2013.

The credit card industry has come a long way in just a few tumultuous years.  Not long ago, the industry was pursuing cardholders so aggressively that credit was being extended to minors, deceased relatives, and in some verified cases even the family PET was receiving his own charge card!

U.S. merchants will upgrade to a new chip-and-PIN credit card standard fairly quickly as they race to meet a 2015 deadline set by MasterCard and Visa.  Over half of terminals will accept chip-and-PIN cards by the end of 2015, according to BI Intelligence estimates, based on Aite Group data. 

PayPal is close to a deal to acquire Braintree, a company that specializes in powering mobile transactions. Meanwhile, Facebook announced that it's pairing up with payment companies to roll out "Autofill," which makes it easier for its users to buy things straight from their phones. 

(frankieleon)