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Visa and Mastercard Strike a Fee Deal. The Winners and Losers.

1. Visa and Mastercard agree to lower interchange fees for merchants. 2. Merchants might reject certain credit cards under the new agreement. 3. The fee reduction could impact cardholder rewards programs significantly. 4. Analysts view the agreement as manageable for Visa and Mastercard. 5. Retailers could adjust surcharges rather than reject cards.

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FAQ

Why Neutral?

The agreement does not significantly threaten Visa or Mastercard's revenue streams. Historical precedents show that similar legal actions have not heavily impacted SPY.

How important is it?

The impact of fee adjustments is largely confined to Visa and Mastercard, safeguarding SPY's larger portfolio.

Why Short Term?

Immediate retail behavior changes may occur, but long-term impacts on SPY are unlikely.

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