SOURCE: The Bedford Report

The Bedford Report

October 25, 2010 08:46 ET

Regulatory Uncertainty Lingers in Credit Services Industry

The Bedford Report Provides Analyst Research on Visa & American Express

NEW YORK, NY--(Marketwire - October 25, 2010) -  Investors have been watching the Credit Services Industry very closely this earnings season as companies have been adjusting to new regulatory laws. Legislation has restricted fees garnered by transactions when consumers use their cards for purchases. With consumers borrowing less and new legislation poised to negatively affect the credit card industry, companies have had to develop new revenue drivers. Then earlier this month, the Justice Department threw another set of hurdles at the industry. The Bedford Report examines the outlook for companies in the Credit Services Industry and provides research reports on Visa, Inc. (NYSE: V) and American Express Company (NYSE: AXP). Access to the full company reports can be found at:

Earlier in the month, the Justice Department filed suit against Visa, MasterCard and American Express, accusing them of violating antitrust laws. Visa and MasterCard agreed to settle, and will let merchants offer discounts to consumers who use cheaper types of credit or debit cards. Unbeknownst to many card holders, the fees that merchants must pay to processing networks can vary depending on the type of card being used. The Department of Justice claims that the credit card processors' practice of preventing merchants from giving discounts to customers who use smaller fee cards is an anti-competitive manoeuvre.

The Bedford Report releases regular market updates on the Credit Services Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at and get exclusive access to our numerous analyst reports and industry newsletters.

American Express, whom stands to lose the most with their higher fee cards, claims they have "no intentions" of settling with the Department of Justice. During the company's third quarter earnings call, American Express' CEO Kenneth Chenault lashed out at the US Government claiming its intervention in the company's business practices would not lead to a positive outcome. For the third quarter, AXP posted adjusted EPS of 90 cents on revenues of $7 billion.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at

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