Understanding the Impact of Interchange Cuts on Visa

Analyzing the potential impact of interchange cuts on Visa involves recognizing the differences in risk pools for consumer credit interchange, business debit interchange, and charge cards. The likely target for interchange cuts identified is German exempt interchange, which allows some debit cards to earn 2% interchange on all spend compared to the regulated rate of 10 to 20 basis points. This insight is crucial for the FinTech narrative and highlights the need for a nuanced approach towards interchange cuts instead of a blanket reduction across all interchange categories.